Discover the cost of the Immigration Skills Charge for various sponsor types. Learn the exact fees employers pay to sponsor skilled workers in the UK!

How Much Does the Immigration Skills Charge Cost for Different Types of Sponsors

ByBernard Andonian

When applying to sponsor a skilled worker for a visa, UK employers must pay the Immigration Skills Charge (ISC). This charge is an additional cost on top of other visa-related fees and is designed to address the domestic skills gap by encouraging businesses to invest in local talent.

Understanding the Immigration Skills Charge’s cost is essential for businesses looking to sponsor foreign workers so they can budget accordingly. The amount you need to pay can vary greatly depending on the size of the sponsoring organisation and the type of sponsorship licence they possess.

This article breaks down the ISC cost for different types of sponsors and what exemptions may apply.

What Is the Immigration Skills Charge?

The Immigration Skills Charge (ISC) is a fee that UK employers must disburse when they sponsor a skilled worker or senior specialist worker for a visa. It applies whenever an employer assigns a Certificate of Sponsorship (CoS) to a foreign worker.

Introduced in April 2017, the ISC is designed to encourage UK businesses to train local workers, reducing the need to hire overseas.

This fee is an extra cost for companies that want to recruit international talent, and employers are responsible for paying it—it cannot be passed on to the worker. If a company tries to make the employee pay this fee, the employee could lose their sponsorship licence.

The ISC applies to certain visa routes, such as the Skilled Worker Visa and Senior or Specialist Worker visas. Employers must pay it for any Certificates of Sponsorship issued after April 6, 2017, under these routes. 

Also read: What Is the Immigration Skills Charge and Who Is Required to Pay It?

Different Types of Sponsors and Their ISC Rates

The UK government has set different rates for large and small or charitable sponsors. Understanding what type of sponsor you are is crucial to determining how much you need to pay. 

1. Small or Charitable Sponsors

Small or charitable sponsors benefit from reduced ISC rates. You’re considered a small sponsor if your business meets at least two of the subsequent criteria:

  • Annual turnover of £10.2 million or less
  • Assets worth £5.1 million or less
  • 50 employees or fewer

Charitable sponsors include registered charities across the UK or organisations with official charitable status for tax purposes. Qualifying as a small or charitable sponsor significantly reduces the ISC cost:

  • £364 for the first 12 months of sponsorship
  • £182 for a further  6-month period after the first year

2. Large Sponsors

Large sponsors typically include businesses with significant financial resources and a larger workforce. You will fall under this category if your business does not qualify as a small or charitable sponsor.

For large sponsors, the ISC costs:

  • £1,000 for the first 12 months of sponsorship
  • £500 for each additional 6-month period after the first year

The ISC must be paid in full at the start of the worker’s sponsorship, based on the duration of their Certificate of Sponsorship. If the worker’s employment lasts six months or one year, the fee is calculated for at least 12 months, even if their stay is shorter.

The maximum sponsorship length is five years. For instance, if you’re a large sponsor and sponsor a worker for a maximum of five years, the total charge can be up to £5,000. On the other hand, small or charitable sponsors will pay a total of £1,820 for the maximum sponsorship period of five years—a much lower fee than large sponsors.

Get to know about: Common Mistakes To Avoid During Sponsor Licence Applications

Are There Any Exemptions From the Immigration Skills Charge?

There are certain exemptions where employers don’t need to disburse the Immigration Skills Charge (ISC). For instance, the ISC does not apply if the worker is sponsored under specific PhD-level occupation codes, including roles like scientists and higher education teaching professionals.

Employers are also exempt when sponsoring workers switching from a student visa or if the Certificate of Sponsorship was issued before April 6, 2017.

Other exemptions include EU nationals under the Global Business Mobility Route and workers employed for less than six months. Additionally, the ISC does not apply to dependents of the main visa applicant.

Need Help With Your Sponsor Licence?

Ensuring your sponsor licence is handled correctly is crucial for your business and its ability to hire skilled workers. At Sponsor Licence Lawyers, we understand how crucial it is to get things right the first time. Our team is here to provide clear, professional advice and guide you through every step of the procedure.

From helping you submit an accurate application to ensuring ongoing compliance with UK immigration rules, our experts are well-versed in sponsor licence requirements. If you’re unsure about any part of the process or obligations, we’re ready to offer the support you need to avoid unnecessary challenges.

Contact us today to discuss how we can assist you in securing and maintaining your sponsor licence.

You Ask, We Answer

FAQs

Yes, if you are sponsoring someone applying for a Skilled Worker Visa, you need to pay the Immigration Skills Charge unless the particular role is exempt. This charge applies when you assign a Certificate of Sponsorship to the worker, regardless of whether they are applying from within the UK or outside the UK.

The Immigration Skills Charge generally applies to skilled workers or senior specialist workers’ visa sponsorship. 

You are considered a medium or large sponsor based on your company’s annual turnover and number of employees. Large sponsors need to pay higher Immigration Skills Charges compared to small or charitable sponsors. 

Apart from the Immigration Skills Charge, other charges the sponsoring employer needs to cover include the sponsor licence application fee, CoS allocation fee, and sometimes the visa application fee for the applicant. Other charges, like the Immigration Health Surcharge, are paid by the applicant themselves, not the sponsor.

Yes, you may be eligible for a partial refund of the Immigration Skills Charge if the worker’s visa application is refused or if the worker leaves their job before the visa expires. 

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Disclaimer

Our articles serve as general guidance and should not be considered legal advice. We do not accept liability for any consequences resulting from reliance on the information provided in our written materials. All readers should seek professional counsel before making any decisions or taking action based on our articles. If you require further assistance, please don’t hesitate to contact us directly for consultation with a qualified professional.

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