For UK businesses looking to hire skilled workers from overseas, obtaining a Sponsor Licence is a crucial step. As part of this process, employers must pay a mandatory application fee to UK Visas and Immigration (UKVI). The cost of this fee depends on the size and type of the organisation and must be considered when planning recruitment budgets.
Bringing in skilled workers from outside the UK can offer significant advantages, such as expanding the talent pool and ensuring access to specialised expertise. However, the sponsorship process involves various costs, which employers need to factor in when making hiring decisions.
This guide provides a comprehensive overview of the expenses associated with applying for and managing a sponsor licence. It covers the sponsor licence application fee, Certificate of Sponsorship (CoS) costs, the Immigration Skills Charge (ISC), and premium service options available to employers. Understanding these costs will help businesses effectively plan and manage their sponsorship obligations.
How Much Does a Sponsor Licence Application Cost?
The cost of a Sponsor Licence in the UK varies based on the type of licence and the size or charitable status of the organisation applying. There are two main types of sponsor licences:
- Worker Licence – Allows businesses to sponsor skilled workers for long-term employment, including routes like the Skilled Worker and Senior or Specialist Worker (under the Global Business Mobility scheme).
- Temporary Worker Licence – Designed for short-term roles, covering various Temporary Worker routes within the Global Business Mobility (GBM) category.
Employers can apply for either one of these licences or both simultaneously. Additionally, businesses with an existing Temporary Worker Licence can later add a Worker Licence (and vice versa).
Sponsor Licence Fees
The application fee depends on the type of licence and the organisation’s classification:
| Licence Type | Small/Charitable Sponsor Fee | Medium/Large Sponsor Fee |
|---|---|---|
| Worker Licence | £536 | £1,476 |
| Temporary Worker Licence | £536 | £536 |
| Applying for Both Licences | £536 | £1,476 |
| Adding a Worker Licence to an Existing Temporary Worker Licence | £0 | £940 |
| Adding a Temporary Worker Licence to an Existing Worker Licence | £0 | £0 |
How to Determine Your Business Size?
A company qualifies as small if it meets at least two of the following criteria:
✔ Annual turnover of £10.2 million or less
✔ Total assets worth £5.1 million or less
✔ Fewer than 50 employees
A charitable sponsor includes:
- Registered charities in England, Wales, Scotland, or Northern Ireland
- Excepted or exempt charities
- Ecclesiastical corporations established for charitable purposes
It is crucial to pay the correct fee, as underpayment may lead to an application rejection.
Priority Processing for Faster Approval
Most Sponsor Licence applications are processed within 8 weeks under the standard service. However, delays can occur if a compliance visit is required before approval.
Fast-Track Service (£500 Fee)
Employers needing a quicker decision can opt for priority processing, reducing the timeframe to 10 working days for an extra £500. However:
- This does not guarantee an approval—only a faster decision.
- If a compliance visit is required, the processing time may still be delayed.
- The priority service has a daily limit on the number of applications accepted. Decisions are made on a first-come, first-served basis.
Applicants will receive instructions on how to request priority processing after submitting their application.
Certificate of Sponsorship (CoS) Fee
When hiring a migrant worker under a UK sponsorship licence, employers must assign a Certificate of Sponsorship (CoS) to each sponsored worker. This document contains a unique reference number, which the worker will need when applying for a visa or permission to stay in the UK.
The CoS fee is an additional cost on top of the sponsor licence application fee and varies depending on the type of employment route the worker is applying for.
How Much Does a Certificate of Sponsorship Cost?
The cost of issuing a CoS depends on whether the worker is applying under a Temporary Worker or Worker route:
| Sponsorship Route | CoS Fee Per Worker |
|---|---|
| Temporary Worker Route | £25 |
| Worker Route (Skilled Worker, etc.) | £239 |
| International Sportsperson (12 months or less) | £25 |
These fees apply to each individual worker, including cases where an employee needs to extend their visa under the same route.
Planned Fee Increases in 2025
The UK Home Office has announced plans to increase certain sponsorship fees in 2025. Employers should stay updated on these changes to ensure they budget accordingly for future sponsorship costs.
By understanding the Certificate of Sponsorship fee structure, businesses can effectively plan for recruitment expenses when hiring skilled international workers.
Optional Sponsor Licence Cost
Once an organisation has been granted a Worker or Temporary Worker sponsor licence, it has the option to subscribe to a premium customer service. This service provides an enhanced level of support for employers sponsoring migrant workers.
Premium Service Fees
The cost of this optional premium service depends on the size of the organisation:
| Sponsor Type | Annual Fee |
|---|---|
| Medium or Large Sponsors | £25,000 |
| Small or Charitable Sponsors | £8,000 |
What Does the Premium Service Include?
✔ Dedicated Account Manager – Employers receive personalised assistance to help navigate sponsorship requirements.
✔ Priority Support – Faster responses to sponsorship-related queries and compliance concerns.
✔ Tailored Guidance – Assistance with meeting the Home Office’s immigration requirements for sponsored workers.
Fast-Track Sponsorship Management Requests
In addition to the premium service, sponsors can pay £200 to expedite certain administrative requests related to their sponsor licence. This priority service applies to:
- Increasing the Certificate of Sponsorship (CoS) allocation
- Updating key personnel details on the sponsor licence
Processing Time
📌 Priority service: Decision within 5 working days
📌 Standard processing time: Up to 18 weeks
By opting for premium services, employers can streamline sponsorship processes, ensuring compliance while reducing delays in managing their licence.
Immigration Skills Charge (ISC)
The Immigration Skills Charge (ISC) is a mandatory fee that UK employers must pay when assigning a Certificate of Sponsorship (CoS) to workers on the Skilled Worker or Senior or Specialist Worker routes. Without paying this charge, the CoS will be considered invalid, preventing the worker from applying for a visa.
How Much is the Immigration Skills Charge?
The ISC fee depends on:
✔ The size or charitable status of the employer
✔ The length of the worker’s sponsorship in the UK
| Sponsor Type | First 12 Months | Each Additional 6 Months |
|---|---|---|
| Small or Charitable Sponsor | £364 | £182 |
| Medium or Large Sponsor | £1,000 | £500 |
Who Must Pay the ISC?
✔ Employers hiring Skilled Workers or Senior/Specialist Workers
✔ Required for workers applying from outside the UK for a visa of 6 months or more
✔ Required for workers applying inside the UK, regardless of the length of their stay
Key Points for Employers
📌 The ISC cannot be transferred to the worker—it must be paid by the sponsoring employer.
📌 The charge is non-refundable if a worker’s visa application is unsuccessful.
📌 Employers should factor this cost into their hiring budgets to ensure compliance with UK immigration rules.
By understanding the Immigration Skills Charge, businesses can effectively plan for recruitment costs and meet their sponsorship obligations.
Recovering Immigration Fees from Sponsored Workers
As of 31 December 2024, the UK Home Office has expanded restrictions on which immigration-related costs employers can recover from sponsored workers. Previously, only the Immigration Skills Charge (ISC) was explicitly non-recoverable. However, new guidance now prohibits employers from reclaiming additional costs.
Which Fees Cannot Be Recovered from Sponsored Workers?
Under the updated regulations, employers cannot pass the following costs onto employees:
🚫 Sponsor Licence Application Fees – Employers must cover all fees related to obtaining a sponsor licence, including any administrative expenses or premium service fees.
🚫 Certificate of Sponsorship (CoS) Fees – The cost of assigning a CoS to a sponsored worker must be paid entirely by the employer and cannot be reclaimed.
Consequences of Violating These Rules
Attempting to recover these costs from sponsored workers can result in serious penalties, including:
⚠️ Revocation of the sponsor licence, preventing the employer from sponsoring foreign workers in the future.
⚠️ Legal and financial consequences, including potential breaches of employment laws.
Employer Compliance Recommendations
✔ Review employment contracts and policies to ensure compliance with the updated rules.
✔ Seek legal guidance before making deductions related to visa or sponsorship expenses.
✔ Ensure transparency with sponsored employees regarding cost obligations.
By following these guidelines, employers can avoid legal risks and maintain their ability to hire skilled overseas workers under the UK sponsorship system.
Cost of Upgrading a Sponsor Licence
When a UK business is approved for a sponsor licence, it is typically granted an A-rating. However, failure to meet sponsorship obligations can result in a downgrade to a B-rating. This downgrade affects an employer’s ability to recruit new overseas workers until compliance issues are resolved.
Why Might a Sponsor Licence Be Downgraded?
A sponsor licence may be downgraded if an employer:
🔹 Fails to maintain accurate records for sponsored workers
🔹 Does not report visa breaches or non-compliance to UK Visas and Immigration (UKVI)
🔹 Does not adhere to Home Office regulations related to sponsorship
How to Upgrade a Downgraded Licence
If a licence is downgraded, the employer can still issue Certificates of Sponsorship (CoS) to existing sponsored employees seeking to extend their stay. However, they cannot issue new CoS until the licence is upgraded back to an A-rating.
To regain A-rating status, employers must:
✔ Follow a Home Office action plan to rectify compliance issues
✔ Pay an upgrade fee of £1,476
Exception for UK Expansion Worker Route
For businesses applying under the UK Expansion Worker route, the sponsor licence is initially granted with a provisional rating if the Authorising Officer (AO) is located outside the UK.
✔ The company is allocated only one CoS for the AO
✔ Once the AO successfully secures a visa and enters the UK, the sponsor licence can be fully upgraded
By ensuring compliance with sponsorship responsibilities, employers can avoid downgrades and maintain their ability to hire skilled overseas workers effectively.
Ongoing Sponsor Licence Costs
Beyond the sponsor licence application fee, employers must budget for ongoing costs associated with sponsoring migrant workers. These costs include salary requirements, visa fees, and healthcare surcharges, all of which play a crucial role in compliance with UK sponsorship regulations.
Salary Requirements for Sponsored Workers
For certain visa routes, such as the Skilled Worker route, employers must ensure that the job role meets minimum salary thresholds set by UK Visas and Immigration (UKVI).
✔ The proposed salary must meet or exceed the general salary threshold or the occupation-specific ‘going rate’, whichever is higher.
✔ Each occupation code has a specific annual salary requirement, which can be checked in the Appendix Skilled Occupations on the GOV.UK website.
Employers must verify these salary levels before issuing a Certificate of Sponsorship (CoS) to avoid compliance issues.
Additional Costs Employers May Cover
In addition to salary obligations, employers may choose to cover visa-related costs for their sponsored workers. These can include:
🔹 Visa Application Fees – The cost varies depending on the worker’s visa type and circumstances.
🔹 Healthcare Surcharge – A yearly fee that allows the worker access to the NHS during their stay in the UK.
🔹 Premium Processing Fees – For faster processing, employers may opt for:
- Priority service: £500 (for quicker visa decisions)
- Super priority service: £800 (for the fastest processing available)
Planning for Long-Term Sponsorship Costs
✔ Employers should consider these ongoing financial commitments when hiring foreign workers.
✔ Understanding the full cost structure of sponsorship ensures compliance and effective budgeting for workforce planning.
By factoring in salary requirements, visa expenses, and additional service fees, businesses can successfully manage sponsorship obligations while attracting international talent.
Need Expert Guidance?
Applying for a sponsor licence can be a complex process, requiring careful preparation and compliance with UK immigration regulations. If you need assistance, our team of UK immigration specialists is here to help.
✔ Comprehensive Support – We provide end-to-end guidance on the sponsorship application process, ensuring all required documents and evidence are correctly prepared.
✔ Compliance Advice – Our experts help businesses understand their sponsorship duties to avoid potential penalties or licence revocation.
✔ Ongoing Management – We offer best-practice strategies for maintaining sponsor licence compliance and managing sponsored employees efficiently.
For personalised support and expert advice on obtaining or managing a sponsor licence, reach out to our team today.