Sponsoring a foreign worker for a UK work visa is a significant investment, with costs potentially running into thousands of pounds. Since the UK’s exit from the European Union, these costs now also apply to employers seeking to hire EU nationals under the Points-Based Immigration System. This article outlines the various fees involved and how they impact both employers and workers.
Our leading London law firm, with its specialist immigration solicitors and expert immigration team, is here to provide you with the guidance and support your needs to successfully obtain your visa application.
Understanding the Cost of Sponsorship
The financial burden of sponsoring a skilled worker includes several different fees, some of which are the responsibility of the employer, while others are typically paid by the visa applicant. Many employers, particularly those in competitive sectors, choose to cover all these costs to attract top talent and prevent workers from bearing a heavy financial burden.
With recent changes to the UK immigration rules, including an increase in minimum salary requirements and visa fees as of April 2024, the costs of sponsorship have become a critical consideration for businesses looking to expand their workforce with skilled labour.
Sponsor Licence Costs
To sponsor a worker, a business must first obtain a sponsor licence from the Home Office. The cost of this licence depends on the size and status of the organisation:
- Small businesses or charities: £536
- Large businesses: £1,476
The size of the organisation is determined based on criteria outlined in the Companies Act 2006, which considers factors such as turnover, balance sheet total, and the number of employees.
Cost of Sponsoring a Skilled Worker
The Skilled Worker visa is the primary route for foreign nationals coming to work in the UK. Below are the main costs associated with sponsoring a Skilled Worker:
Certificate of Sponsorship (CoS)
A Certificate of Sponsorship is a key document issued by the employer to the worker, which is then used by the worker to apply for their visa. The cost of each CoS is £239.
Immigration Skills Charge
The Immigration Skills Charge is a levy imposed on employers hiring workers from abroad. The cost varies based on the size of the sponsoring organisation:
- Small or charitable sponsors: £364 for the first year and £182 for each additional six months (totaling £1,820 for a five-year visa)
- Medium or large sponsors: £1,000 for the first year and £500 for each additional six months (totaling £5,000 for a five-year visa)
Visa Application Fee
The visa application fee is another significant cost, varying depending on the length of the visa and whether the job is on the immigration salary list:
- Visa up to three years: £719 (non-immigration salary list) or £551 (immigration salary list)
- Visa for more than three years: £1,420 (non-immigration salary list) or £1,084 (immigration salary list)
Immigration Health Surcharge (IHS)
The Immigration Health Surcharge is an additional cost levied on top of the visa application fee. It is £1,035 per year of the visa. For example, a five-year visa would incur a surcharge of £5,175.
Additional Costs for Workers
In addition to the above, workers may encounter extra costs for premium services such as expedited processing, keeping their passport during the application process, or using a VIP lounge. While these services are optional, they can significantly increase the overall cost.
Premium Sponsorship Services
For employers seeking a faster and more streamlined process, the Home Office offers a premium service. This service costs £25,000 per year for medium and large businesses, or £8,000 for small businesses, and includes a range of benefits designed to make the sponsorship process smoother.
Who Covers the Costs?
Deciding who pays the various costs associated with a work visa is a critical discussion between the employer and the worker. While the employer must cover the sponsor licence fee and the Immigration Skills Charge, it’s essential to agree on how other fees will be divided, especially if the worker’s family members will also need visas.
Employers should have clear agreements in place to avoid misunderstandings and ensure compliance with UK immigration laws.
FAQs
How much does it cost to sponsor someone for a UK work visa?
The cost varies depending on the size of the business and the length of the visa. Typically, the total cost can range from £9,000 to £12,000, including the sponsor licence fee, Immigration Skills Charge, visa application fee, and Immigration Health Surcharge.
Who pays for the UK work visa fees?
While some fees, such as the sponsor licence and Immigration Skills Charge, must be paid by the employer, other costs can be shared between the employer and the worker. This is usually agreed upon before the sponsorship process begins.
Can the Immigration Skills Charge be passed on to the worker?
No, the Immigration Skills Charge cannot be passed on to the worker. This cost is the responsibility of the sponsoring employer.
What is the Immigration Health Surcharge, and who pays it?
The Immigration Health Surcharge is a tax on visas that grants access to the UK’s National Health Service (NHS). While it is typically paid by the worker, employers often cover this cost as part of their sponsorship package.
How long does it take to get a sponsor licence?
The processing time for a sponsor licence application can take up to eight weeks. However, using the premium service may expedite the process.
For expert assistance with your visa application or sponsorship needs, contact our leading London law firm. Our specialist immigration solicitors and expert immigration team are here to guide you through every step of the process.