What Happens if the Immigration Skills Charge is Not Paid on Time?
Employers must follow specific rules when hiring skilled workers from outside the UK, one of which is disbursing the Immigration Skills Charge (ISC). The ISC must be paid when sponsoring a migrant worker under certain visa categories, including the Skilled Worker, Senior, or Specialist Worker routes.
Failing to pay the ISC on time can lead to serious consequences, including issues with the sponsorship and worker’s visa application. In this blog, we’ll explain what happens if the ISC isn’t paid on time and why staying on top of this requirement is essential.
What Is the Immigration Skills Charge (ISC)?
The Immigration Skills Charge (ISC) is a fee that UK employers must pay when sponsoring a migrant worker under certain visa routes, such as the Skilled Worker, senior, or Specialist Worker categories.
Introduced in April 2017, the Immigration Skills Charge (ISC) aims to reduce the skills shortage in the UK by motivating employers to invest in training and developing the local workforce. The charge applies to most employers who sponsor foreign workers, though some exemptions exist, such as for PhD-level roles or workers on shorter contracts.
The amount payable varies depending on the employer’s size, with higher fees for larger sponsors than small or charitable sponsors. Failure to pay the ISC on time can result in visa delays or application refusals.
When Is the ISC Due?
The Immigration Skills Charge (ISC) must be paid when an employer sponsors a migrant worker by assigning a certificate of sponsorship to them under the applicable routes. The employer must pay it before the worker’s visa application can proceed.
The Home Office will not process the application until the ISC has been paid in full. If a worker already employed is changing to a role with a different occupation code, a new CoS must be assigned, and the ISC must be paid again.
The charge must cover the entire length of the worker’s visa, and additional fees may be required if the visa’s validity period is extended.
Read about: Are There Any Exemptions to the Immigration Skills Charge?
Consequences of Not Paying the ISC on Time
Failing to pay the Immigration Skills Charge (ISC) on time can lead to severe complications for the employer and the sponsored worker. If the ISC is not paid when a Certificate of Sponsorship (CoS) is assigned, the CoS becomes invalid until the payment is made. The worker’s visa application will not proceed until the charge is settled.
UK Visas and Immigration (UKVI) will usually issue a payment reminder to the employer if the ISC is not paid or the incorrect amount is submitted. The sponsor needs to complete the payment or top up the required amount within 10 working days.
If the payment is not made within this period, the worker’s visa application will be refused, and the employer risks further delays that could lead to other complications.
Tips to Avoid Missing ISC Payments
To ensure the smooth processing of visa applications and avoid the complications of late ISC payments, employers should adopt the below best practices for managing these deadlines:
- Set Reminders: Implement automated calendar reminders to track when ISC payments are due. This can help ensure payments are made before assigning a Certificate of Sponsorship.
- Delegate Responsibility: Assign a reliable team member or department to oversee ISC payments. Having a specific point of contact can reduce the risk of neglected payments.
- Pay Early: If possible, make the ISC payment as soon as you assign the Certificate of Sponsorship, avoiding last-minute rushes or errors.
- Double-check Payment Amounts: Always verify that the correct amount is paid, especially when dealing with top-up payments or changes to a worker’s visa period.
- Keep Records: Maintain detailed records of all ISC payments, including dates and payment confirmations, to ensure everything is correctly documented in case of any issues with UKVI.
By staying organised and proactive, sponsoring employers can avoid the pitfalls of missing ISC payments and ensure that visa applications proceed without delay.
Get to know about: How Much Does the Immigration Skills Charge Cost for Different Types of Sponsors
Let Sponsor Licence Lawyers Help You
Worried about missing important deadlines or staying compliant with your sponsor licence obligations? Our team at Sponsor Licence Lawyers can help. From applying for the sponsorship licence to ensuring compliance, we are here to help.
With our ongoing support, you can focus on your business, knowing that experts fully manage your compliance with UK immigration rules. Contact us today for professional guidance personalised to your needs.
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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.
