Sponsor Licence – If you’re a company looking to hire skilled workers from outside the UK, get a Sponsor Licence. But this license comes with some fees. In this post, we outline what sponsoring skilled workers costs so that companies know what they’re getting into.
Costs for Sponsoring Skilled Workers
If a business wants to sponsor talented workers, they must first apply for a Sponsor Licence with the UK Home Office. Companies can employ non-EEA citizens and EU citizens for skilled work under this license.
Home Office Costs
Cost of Applying for Sponsor Licence based on your Company Size. You will find companies classified as small or big and that impacts the fees you’ll be paying.
Small Companies
A small company meets two of the following criteria:
- Annual turnover of up to £10.2 million
- Balance sheet total of up to £5.1 million
- No more than 50 employees
Small companies pay a lower fee of £536 when applying for a Sponsor Licence.
Large Companies
If your company doesn’t meet the small company criteria, you will be considered a large company and will pay a higher fee. Large companies pay £1,476 for a Sponsor Licence.
Some companies can also pay an extra £500 to expedite the application process, provided they meet certain requirements.
Certificate of Sponsorship (CoS) and Immigration Skills Charge
Once your company has a Sponsor Licence, you will need to assign a Certificate of Sponsorship (CoS) to each skilled worker you want to hire. The current fee for assigning a CoS is £199.
Immigration Skills Charge
Introduced in 2017, the Immigration Skills Charge is an additional cost that businesses must pay when sponsoring skilled workers. This charge encourages companies to train UK workers and reduce reliance on hiring from abroad.
- Large companies must pay £1,000 per year of sponsorship.
- Small companies pay £364 per year of sponsorship.
For example, if a large company sponsors a worker for three years, the total Immigration Skills Charge would be £3,000 (£1,000 per year). This is in addition to the £199 CoS fee.
The Immigration Skills Charge cannot be passed on to the employee and must be paid by the sponsoring company.
Other Costs: Visa Application and Immigration Health Surcharge
While the costs for obtaining the Sponsor Licence and CoS are paid by the employer, there are additional costs that apply to the visa applicant (the skilled worker).
- Visa Application Fee: This fee varies depending on the length of the worker’s sponsorship and whether they apply inside or outside the UK. Fees range from £610 to £1,408 and typically increase every April.
- Immigration Health Surcharge (IHS): All skilled workers must pay an annual health surcharge. As of now, the IHS is £624 per year. So, if a worker is sponsored for three years, they will need to pay £1,872 for the entire duration.
While the visa application fee and IHS are paid by the worker, many companies choose to cover these costs themselves as part of the sponsorship process.
Quick Estimate of Sponsorship Costs
Want to know how much it will cost to sponsor a skilled worker? Law and Visas can help you calculate the full cost, including all government fees and additional charges. Simply use our Sponsor Licence Calculator to get an estimate tailored to your company’s needs.
Sponsoring skilled workers in the UK involves several fees, including the Sponsor Licence application, Certificate of Sponsorship, and Immigration Skills Charge. While the process can be expensive, it is often more cost-effective than hiring through recruitment agencies, especially when you factor in the long-term benefits of hiring skilled international talent.
For expert help with navigating the sponsorship process and calculating costs, get in touch with Law and Visas. We can guide you through the entire process and ensure you meet all the requirements for sponsoring skilled workers in the UK.
