How Much Does a Sponsor Licence Application Cost?

If you plan to apply for a sponsor licence for your organisation, it is important to understand the various costs involved in the process. The type of sponsor licence you need and the size of your organisation will affect the application fee.

This article outlines the necessary fees associated with each licence type and provides insights into the financial implications of the sponsorship process so that organisations can effectively budget for it.

Learn More: What Is a Sponsor Licence? – Sponsor License Lawyers

Sponsor Licence Application Fees

Understanding the different types of sponsor licences and their respective fees is crucial for any UK business planning to hire from outside the UK. These licences are differentiated primarily by the duration and nature of the roles for which foreign nationals are employed. 

Worker Licence

This licence is designated for long-term skilled roles, facilitating employment under routes such as the Skilled Worker and Senior or Specialist Worker visas. It is crucial for organisations looking to fill permanent or extended-duration positions with international talent.

Worker Sponsor Licence Fees:

• Small or Charitable Organisations: £574
• Medium or Large Organisations: £1,579

Temporary Worker Licence

Aimed at employers needing to fill short-term roles, the Temporary Worker Licence covers various routes. This licence type suits internships, seasonal positions, and other temporary employment needs that do not fit the permanent and long-term criteria.

Temporary Worker Sponsor Licence Fee: £574 for all organisations, regardless of size. 

Combined Licences

For businesses that require the flexibility of sponsoring both long-term and short-term international employees, concurrently applying for both a Worker and a Temporary Worker Licence can be a strategic choice.

Fees: 

• Small or Charitable Sponsor: £574 
• Medium or Large Sponsor: £1,579 

Additional Costs Post-Licence Approval

After successfully obtaining a sponsor licence, the organisation must be aware of additional fees for employing foreign nationals. These include:

Certificate of Sponsorship (CoS) Fees

 A Certificate of Sponsorship is not an actual certificate but a unique reference number that a licensed sponsor must assign to each foreign national they wish to employ. This reference number is used by the visa applicant to apply for a UK visa.

The CoS is crucial as it confirms that the job offer and the sponsor are genuine and that the migrant worker meets the criteria for the UK’s immigration rules.

Costs:

• Temporary Worker routes: £25 per CoS
• Worker routes: £239 per CoS (Special reduced rates are available for certain short-term assignments like International Sportsperson. The CoS cost is only £25 if the engagement is for 12 months or less).

The fee for issuing a CoS is meant to cover administrative costs incurred by the UK Visa and Immigration (UKVI) services in processing the sponsorships and ensuring that only qualified individuals are granted entry to work in the UK.

Immigration Skills Charge

Organisations may need to pay the Immigration Skills Charge (ISC), which is required when you assign a Certificate of Sponsorship to those applying for a Skilled Worker visa or Senior or Specialist Worker visa. This charge is applicable under the following circumstances:

• When the visa applicant is filing for the visa application from outside the UK to perform in the UK for 6 months or more.
• When the applicant is applying from within the United Kingdom, regardless of how long they want to remain.

Fee structure:

• Small Sponsors: £364 for the first 12 months for each sponsored employee, plus £182 for each additional 6 months.
• Medium or Large Sponsors: £1,000 for the first 12 months for each sponsored employee, plus £500 for the extra 6 months.

Learn More about: Key Personnel Roles Required for a UK Sponsor Licence

Sponsor Licence Fast-Tracking and Premium Services

For organisations that require quicker processing of their sponsor licence applications or enhanced support for their sponsorship duties, the UK Home Office offers fast-track and premium services. These options are designed to facilitate a smoother and more efficient sponsorship process, accommodating the urgent needs of businesses in recruiting international talent.

Fast-Tracking Your Application

Organisations can opt for expedited processing of a sponsorship licence application for a fee of £500. This service ensures a decision within 10 working days, significantly quicker than the usual processing period, which is around 8 weeks.

Please note that the fast-track option is available on a first-come, first-served basis and is limited to a small number of daily applications. This service does not guarantee application approval and is subject to delays if a compliance visit is required or if additional documentation needs to be reviewed. 

Premium Customer Service

The premium service offers organisations a dedicated account manager who provides tailored guidance throughout the sponsorship process. This includes assistance with applying for a sponsor licence, managing or renewing a licence, and handling the assignment of Certificates of Sponsorship.

This service ensures that organisations can effectively and efficiently manage their responsibilities as UK sponsors. The dedicated account manager helps to navigate the complexities of the UK immigration system, ensuring compliance and the timely processing of all related applications.

Fees:

• Medium or Large Sponsors: £25,000 per year
• Small or Charitable Sponsors: £8,000 per year

Sponsor Licence Rating Upgrade Fees

A B-rated sponsor licence may be assigned if the Home Office finds that a sponsor has not fully complied with its sponsorship duties. An organisation must upgrade to an A-rating to lift restrictions imposed by a B-rating and regain full sponsorship rights.

The fee to upgrade from a B-rating to an A-rating is £1,579, irrespective of the organisation’s size. This fee facilitates the Home Office’s review process to ensure that the sponsor has made the necessary improvements to meet compliance requirements.

The upgrade process typically involves the sponsor demonstrating improved practices and compliance mechanisms, which might include better record-keeping, stricter HR policies to prevent abuse of the sponsorship system, or more rigorous processes to ensure that only eligible workers are sponsored.

Get to know: What Are the Genuine Business Need Requirements for a Sponsor Licence?

Let Us Help With Your Sponsor Licence Application

The sponsorship licence application process can be complex and time-consuming. With critical steps that require precise attention to detail, it’s vital to get it right the first time to avoid costly delays or rejections. Let our team of experienced sponsor licence lawyers help you.

We provide expert guidance on every aspect of your application, from choosing the right type of licence to ensuring all your documentation complies with the Home Office’s stringent requirements. We’ll help you understand the costs, manage your sponsorship duties effectively, and avoid pitfalls. Contact us today to ensure your application succeeds and streamline your path to employing skilled international workers.