Securing a sponsorship license allows UK businesses to hire foreign workers under various visa categories, including the Skilled Worker and Temporary Worker visas. However, understanding the costs associated with obtaining and maintaining a sponsorship license is crucial for businesses planning to hire international talent. This guide provides a detailed look at sponsorship license fees, including application and renewal costs, as well as other associated expenses.
1. What is a UK Sponsorship License?
A sponsorship license is a certification granted by the UK Home Office that permits UK-based employers to hire and sponsor skilled foreign workers. This license is essential for companies intending to bring in workers through visas such as the Skilled Worker Visa, Health and Care Worker Visa, and Intra-company Transfer Visa. Holding a valid license enables employers to assign Certificates of Sponsorship (CoS), which workers need to apply for their visas.
2. Sponsorship License Application Fees
The cost of obtaining a sponsorship license depends on the size and type of the organization:
- Small or Charitable Organizations: £536
- Medium or Large Organizations: £1,476
Small or Charitable Organizations qualify for a lower fee if they meet at least two of the following criteria:
- Annual turnover of £10.2 million or less
- Total assets of £5.1 million or less
- Fewer than 50 employees
Larger companies that don’t meet these criteria must pay the higher application fee. The fee covers a four-year license, after which it must be renewed.
3. Renewal Fees for Sponsorship License
A sponsorship license is valid for four years. To continue sponsoring foreign workers after this period, companies must renew the license. The renewal fees are the same as the initial application costs:
- Small or Charitable Organizations: £536
- Medium or Large Organizations: £1,476
Employers are advised to apply for renewal before the license expires to avoid lapses in sponsorship rights. An expired license can disrupt the company’s ability to sponsor foreign workers and may lead to additional costs for reapplication.
4. Immigration Skills Charge
The Immigration Skills Charge (ISC) is an additional fee for sponsoring certain workers, such as those on a Skilled Worker Visa. It is separate from the license fee and applies each time a Certificate of Sponsorship is assigned. ISC fees are:
- Small or Charitable Organizations: £364 per worker for the first 12 months, plus £182 for each additional 6 months.
- Medium or Large Organizations: £1,000 per worker for the first 12 months, plus £500 for each additional 6 months.
This charge helps fund UK training programs, and failing to pay it may lead to visa rejection for the sponsored employee.
5. Certificate of Sponsorship (CoS) Fees
A Certificate of Sponsorship (CoS) is a document issued by employers to foreign workers, allowing them to apply for a UK work visa. There is a cost for each certificate assigned:
- Cost per CoS: £199 for both Skilled Worker and Intra-company Transfer routes.
Each certificate is linked to a specific job role, and employers should allocate them carefully to avoid unnecessary expenses.
6. Additional Compliance Costs
Maintaining a sponsorship license involves compliance measures to meet Home Office standards. While these costs vary, they may include:
- Compliance Audits: Employers should be prepared for occasional audits, which may require additional resources for record-keeping and HR support.
- Record-Keeping and Reporting: Companies must document employee work status and notify the Home Office of changes, such as job title, salary, or work location adjustments.
- Training Costs: Employers often train HR staff to understand sponsorship rules, which may involve additional expenses.
Maintaining compliance is crucial to avoid penalties, license suspension, or revocation.
7. Sponsorship License Cost Summary Table
| Cost Type | Small/Charitable Organization | Medium/Large Organization |
|---|---|---|
| Sponsorship License Application | £536 | £1,476 |
| Sponsorship License Renewal | £536 | £1,476 |
| Immigration Skills Charge (1 Year) | £364 | £1,000 |
| CoS Fee per Worker | £199 | £199 |
8. Frequently Asked Questions (FAQs)
1. How often must I pay the sponsorship license fee?
The sponsorship license fee is paid every four years, during both initial application and renewal.
2. Is the Immigration Skills Charge mandatory for all visa types?
The ISC is required for most Skilled Worker and Intra-company Transfer visa holders. However, it does not apply to certain roles in PhD-level occupations and other specific categories.
3. Can I recover the Immigration Skills Charge from the employee?
No, the ISC must be paid by the employer and cannot be deducted from the employee’s salary or reimbursed by the worker.
4. Are there penalties for non-compliance with sponsorship license terms?
Yes, failure to meet compliance requirements can result in fines, suspension, or revocation of the sponsorship license.
5. Can I apply for multiple Certificates of Sponsorship at once?
Yes, organizations can apply for multiple CoS based on anticipated hiring needs, but they must be allocated only to eligible candidates.
6. What happens if my sponsorship license expires?
If a license expires without renewal, the employer loses the right to sponsor foreign workers and may have to reapply for a new license.