Immigration Health Surcharge (IHS): What You Need to Know

Overview of the IHS and its purpose

The Immigration Health Surcharge (IHS) is a fee imposed on most foreign nationals applying for UK visas that last longer than six months. It grants access to the National Health Service (NHS) and aims to ensure that migrants contribute to the healthcare costs they incur during their stay in the UK.

Historical context

The Immigration Health Surcharge (IHS), introduced in 2015 under the Immigration Act 2014, aimed to address concerns about migrants using NHS services without contributing financially. Since its inception, it has raised nearly £2 billion for healthcare funding.

Who is required to pay the IHS and how it applies

Most visa applicants, including their dependents, must pay the IHS when applying for a visa that allows them to stay in the UK for more than six months. Exemptions exist for certain categories, including health and care workers.

How the Immigration Health Surcharge Works

The IHS is calculated at a standard rate of £1,035 per year for most applicants. However, students and children pay a reduced rate of £776 per year.
Applicants must pay the surcharge when submitting their visa application. Failure to pay results in an invalid application.
Differences in IHS rates for different visa categories and duration: Rates vary based on visa type and duration, with specific discounts available for students and children under 18. The fee structure reflects the estimated average cost of providing healthcare to migrants.

Who is Exempt from the Immigration Health Surcharge?

Details on exemptions for specific visa types: Certain groups are exempt from paying the IHS, including health and care workers, asylum seekers, and individuals on visitor visas.
Who qualifies for a reduction in the IHS fee?: Students, children under 18, and those on specific visas such as the Youth Mobility Scheme qualify for reduced fees.
Special provisions for dependents or individuals on specific visa types: Dependents of exempt visa holders may also be eligible for fee waivers or reductions depending on their circumstances.

The Impact of IHS on Employers

How IHS affects businesses sponsoring foreign employees: Employers sponsoring foreign workers must account for the additional costs associated with the IHS when budgeting for employee expenses. This can affect hiring decisions and overall employment costs.
Potential costs to employers for sponsoring foreign workers who need visas: The financial burden of the IHS can be significant, particularly for businesses that employ multiple foreign nationals or those requiring long-term visas.
Guidance for employers on informing employees about the IHS: Employers should provide clear information about the IHS during recruitment processes and ensure that employees understand their obligations regarding payment and exemptions.

Changes to the IHS in 2025: What Employers and Visa Applicants Need to Know

New regulations or increases in IHS fees for the upcoming year: Starting February 6, 2024, the standard rate will increase to £1,035 per year. This change will affect all new applications submitted after this date.
How these changes impact both employers and visa applicants: Increased fees may deter some potential applicants or lead employers to reconsider sponsorship options due to higher overall costs associated with employing foreign workers.
Predictions for future adjustments to IHS fees: Experts suggest that further increases may occur as government policies evolve regarding immigration and healthcare funding. Continuous monitoring of these changes will be essential for both employers and applicants.

How the Immigration Health Surcharge Affects Healthcare Access

The relationship between IHS payments and access to the NHS: Paying the Immigration Health Surcharge (IHS) allows foreign nationals to access NHS services on the same basis as UK residents for the duration of their visa. This means they can receive hospital treatment without charge, starting from the date their visa is granted.
Services covered by IHS: Individuals who have paid the IHS can access a wide range of NHS services, including hospital treatments and consultations. However, certain services remain chargeable, such as prescriptions, dental treatment, and eye tests.
Limitations or exclusions under IHS: While IHS holders have broad access to NHS services, there are limitations. For instance, if a visa is curtailed or ended early, individuals may become chargeable for any further NHS treatment received after that date. Additionally, non-exempt treatments received before the visa start date may also incur charges.

IHS for Students: What You Need to Know

Specific details on how the IHS applies to international students: International students applying for visas longer than six months must pay the IHS as part of their application. The current rate is £776 per year, with adjustments based on course duration.
How students can calculate and pay IHS during their visa applications: Students can calculate their IHS by considering the length of their course and any additional leave granted post-study. Payment is made during the online visa application process and must be completed before submission.
Implications for students studying in the UK and healthcare access: Paying the IHS enables students to access NHS services similarly to UK residents, which is crucial for managing health needs during their studies. However, they must still budget for non-covered services like prescriptions.

IHS for Family Members and Dependents

Dependents accompanying the main visa applicant must also pay the IHS. The system calculates the surcharge for each dependent based on the duration of their visa.
The system calculates the surcharge for families using the same principles as for main applicants. It determines each family member’s fee based on their individual visa duration and catego
Possible implications for family-sponsored visa holders: Family members may face significant financial implications due to the cumulative cost of multiple IHS payments. This could affect decisions regarding sponsorship and relocation to the UK.

How to Pay the Immigration Health Surcharge: Step-by-Step Guide

Detailed instructions on how applicants can pay the IHS: Applicants must pay the IHS as part of their online visa application process. The system will prompt them to make this payment before they submit their application.
Common pitfalls and how to avoid payment errors: A common mistake is attempting to pay the IHS separately from the visa application, which can lead to duplicate charges. Applicants should ensure they follow prompts during the application process to avoid this issue.
The application system seamlessly integrates the online payment process, allowing immediate processing and quick confirmation. Applicants should expect confirmation of payment upon completion, which is necessary for visa approval.

Impact of the IHS on Skilled Workers and Businesses

How the IHS affects the cost of hiring international talent: The additional cost associated with the IHS can significantly increase overall expenses for businesses looking to hire skilled workers from abroad. This may influence hiring strategies and budget allocations.
How the surcharge might influence decision-making for businesses hiring foreign workers: Companies may reconsider sponsorship opportunities due to rising costs linked with the IHS, potentially leading to a reduced pool of international talent available for recruitment.
Budgeting and financial planning for companies that sponsor visas: Employers need to incorporate IHS costs into their financial planning processes when sponsoring foreign employees. This includes anticipating potential increases in fees and adjusting budgets accordingly.

Refunds and Reimbursements of the Immigration Health Surcharge

To request a refund for the Immigration Health Surcharge (IHS), individuals must wait for the visa decision. If the visa application is refused or withdrawn, the system automatically processes a full refund to the original payment method. For overpayments, applicants can apply for a refund through the UKVI online system.
Applicants can receive a full refund if their visa application is rejected, withdrawn, or if they accidentally paid the IHS fee twice. They may also receive a partial refund if the visa duration is shorter than expected or if dependent applications are denied. Additionally, healthcare workers may qualify for refunds based on specific criteria related to their employment status.
How employers can help employees navigate refund requests: Employers can assist employees by providing guidance on the refund process, including necessary documentation such as IHS reference numbers and payment details. They can also support employees in understanding eligibility criteria and deadlines for submitting refund requests.

Comparing IHS to Other International Healthcare Surcharges

A comparison of the UK’s IHS with similar healthcare surcharges in other countries: The UK’s IHS is similar to surcharges in countries like Australia and Canada, where international migrants must contribute to healthcare systems. However, the UK’s model stands out due to its specific fee structure and automatic access to NHS services upon payment.
What makes the UK’s IHS different or unique?: Unlike some countries that charge healthcare fees separately from visa applications, the IHS integrates healthcare access directly into the visa process. This creates a streamlined approach but also raises concerns about affordability for low-income migrants.
Insights for businesses with employees working in multiple countries: Companies operating internationally need to understand varying healthcare surcharge policies to effectively budget for employee relocation and ensure compliance across jurisdictions. This knowledge helps in managing costs associated with hiring foreign talent.

Legal and Ethical Considerations Around the Immigration Health Surcharge

Discussion on the ethical debate surrounding the IHS: The IHS has sparked ethical discussions regarding its impact on low-income workers and students who may struggle to afford these fees while seeking opportunities in the UK. Critics argue that it disproportionately affects those who already face financial challenges.
Legal implications for businesses failing to ensure proper IHS compliance: Companies that do not comply with IHS regulations may face legal repercussions, including fines or penalties. Ensuring compliance is crucial for businesses sponsoring foreign workers to avoid complications in immigration processes.
Advocacy efforts or campaigns to reform the IHS: Various advocacy groups are pushing for reforms to make the IHS more equitable, particularly for vulnerable populations. These efforts focus on reducing fees or providing exemptions for certain groups, such as students and low-income workers.

Frequently Asked Questions (FAQ) on the Immigration Health Surcharge

A comprehensive FAQ section addressing common concerns and questions about the IHS: This section should cover topics such as eligibility criteria for refunds, how to calculate fees based on visa duration, and scenarios involving multiple payments.
Applicants frequently ask about situations like paying multiple IHS fees or handling visa refusals. Common concerns include what happens when applicants pay multiple surcharges due to overlapping visas and how the system processes refunds if their application is denied.
Addressing myths and misconceptions about the surcharge: Common myths include misunderstandings about who qualifies for exemptions or refunds; clarifying these points can help applicants navigate their obligations more effectively.

How to Stay Updated on IHS Policy Changes

Resources for staying informed about updates to IHS rates and rules: Individuals can keep abreast of changes by regularly checking official UK government websites and subscribing to immigration law newsletters.
Importance of consulting immigration attorneys or advisors for recent changes: Given that immigration policy can shift rapidly, consulting with legal professionals ensures that applicants receive accurate information tailored to their circumstances.
Tracking and understanding new immigration-related policies: Utilizing online forums, legal blogs, and government announcements can aid in understanding how new policies may affect individual situations regarding the IHS.

The Future of Immigration Health Surcharge: What’s Next?

Predictions for the future of IHS (e.g., rate hikes, new exceptions, or broader changes): Experts anticipate potential increases in IHS rates due to rising healthcare costs and government funding needs. New exemptions may also be introduced based on advocacy efforts.
The role of the IHS in future immigration reforms: As part of broader immigration policy discussions, the IHS will likely remain a focal point for debates about fairness and access to public services for migrants.
Potential impacts of IHS on the overall immigration experience in the UK: Changes to the IHS could significantly influence migrants’ decisions to relocate to the UK, affecting workforce diversity and economic contributions from international talent.

How Law and Visas Can Help?

At Law and Visas, our team of expert immigration consultants is here to make your travel to the UK for business straightforward and successful. Whether you’re applying for a Business Visa or an Immigrant Investor Visa, we handle every step—from preparing your application to gathering the required documents. Additionally, we provide guidance on the UK Immigration Health Surcharge, ensuring you’re fully informed about any additional fees and requirements.

Our immigration lawyer consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.

Law and Visas has a strong record of helping clients secure the visas and permits they need for international travel. Call us today at +234 812 5505 986 to learn how we can assist you.