[UPDATE] Skilled Worker route sponsorship costs for UK companies

Immigration sponsorship via the Skilled Worker visa route comes with substantial financial commitments, including both initial application costs and ongoing expenses. This article will outline the costs of companies sponsoring skilled workers in the UK.

Information correct as of 11th June 2025.

How much does a UK Sponsor Licence cost?

The first step in sponsoring a Skilled Worker in the UK involves applying for a Sponsor Licence from the Home Office, a mandatory requirement for any company seeking to hire a foreign worker.

As a sponsor, you must pay a fee when you apply:

• Small businesses and charities: £574
• Medium and large businesses: £1,579

You’ll be classed as a small business if at least two of the following are true:

• your annual turnover is £15 million or less
• your total assets are worth £7.5 million or less
• you have 50 employees or fewer

You’ll be classed as a charity if you fall into one of the following categories:

• a registered charity in England or Wales
• a registered charity in Scotland
• a registered charity in Northern Ireland – if you’re not on the register, you must provide proof of your charitable status for tax purposes from HM Revenue and Customs (HMRC)
• an excepted charity
• an exempt charity
• an ecclesiastical corporation established for charitable purposes

Previously, an approved Sponsor Licence had a validity period of four years; however, your sponsorship capabilities will now remain valid as long as you continue to meet eligibility requirements.

Certificate of Sponsorship (CoS) fees

After securing a Sponsor Licence, a company must issue a Certificate of Sponsorship (CoS) to each sponsored worker.

Currently, the Certificate of Sponsorship fee is £525.

Accurate CoS assignment is crucial to avoid wastage of fees and potential visa application refusals. Assigning an incorrect type of CoS can lead to visa application refusals, jeopardise compliance with sponsor duties and risk suspension or revocation of the Sponsor Licence. If a Skilled Worker’s job code changes, they may require an additional CoS to continue working for the same company.

Immigration Skills Charge (ISC)

The ISC is an expense borne by sponsoring UK companies, with the following rates:

• Small businesses and charities:
  • £364 for the first year, and
  • £182 for each additional six months
• Medium and large businesses:
  • £1,000 for the first year, and
  • £500 for each additional six months

In its May 2025 immigration white paper, the Home Office shares plans to increase the ISC by 32%, bringing ISC costs to:

• Small businesses and charities:
  • £480 for the first year, and
  • £240 for each additional six months
• Medium and large businesses:
  • £1,032 for the first year, and
  • £660 for each additional six months

Exceptions exist, such as students switching or certain job codes for skilled workers, which may not incur this fee. Unlike most fees, the ISC must be paid by the company.

Partial refunds are possible if a sponsored migrant doesn’t work for the full CoS duration, experiences visa application issues or doesn’t come to work for the sponsoring company.

Priority processing fees

Companies can opt for priority processing fees for Sponsor Licence applications or in-year CoS allocations within the UK.

The pre-licence priority Sponsor Licence service can reduce processing times to within 10 working days for a fee of £500 per request.

Visa application fees

Visa application fees vary based on CoS duration and job category, whether it’s on the Immigration Salary List (ISL) or not.

Current application fees per person are as follows:

Applications made outside the UK

Applications made in the UK

Skilled Workers can choose standard processing or opt for priority services at additional costs, depending on application location and level of priority.

Immigration Health Surcharge (IHS)

Migrants applying for visas exceeding 6 months incur the Immigration Health Surcharge (IHS) fee:

• Most adult migrants: £1,035 per year
• Students and those on the Youth Mobility Scheme: £776 per year
• Children under 18: £776 per year

The IHS aims to cover NHS costs that will allow migrants to access healthcare in the UK.

Legal and compliance costs

Navigating immigration law and ensuring compliance with rules and guidance can be intricate. Many companies choose to seek legal advice and assistance, with costs varying based on case complexity and the number of sponsored Skilled Workers.

For expert guidance on business immigration matters, please don’t hesitate to contact Dan or Tess today on 0141 339 7373 or complete our enquiry form.

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