1. What Does “ISC Liable” Mean?
ISC liable refers to an employer’s responsibility to pay the Immigration Skills Charge (ISC) when sponsoring a worker under certain visa categories in the UK. The ISC is a fee levied by the UK government to encourage employers to train local workers rather than rely on foreign labor. Employers sponsoring skilled workers on Skilled Worker Visas or Global Business Mobility Visas are typically liable for this charge, payable to the Home Office.
2. Purpose of the Immigration Skills Charge (ISC)
The ISC was introduced to incentivize employers to invest in training and upskilling UK-based employees, reducing dependence on overseas workers. Funds from the ISC are allocated to skills training and workforce development initiatives in the UK.
3. Who is ISC Liable?
Employers are liable for the ISC if they:
- Sponsor a worker on a Skilled Worker Visa or Global Business Mobility Visa.
- Employ a foreign worker in a role that requires a Certificate of Sponsorship (CoS) under the points-based immigration system.
Note: Some exemptions apply, particularly for PhD-level occupations or if the employee is switching to a different visa category.
4. ISC Fees and Payment Structure
The cost of the ISC depends on the length of employment and the size of the sponsoring organization:
- Small or Charitable Sponsors: £364 per year of sponsorship.
- Medium or Large Sponsors: £1,000 per year of sponsorship.
For example, a large company sponsoring a skilled worker for 3 years would pay £3,000 (£1,000 per year).
5. Exemptions from ISC Liability
Certain situations exempt an employer from ISC liability, such as:
- Intra-Company Transfer Visa holders working in the UK for less than 6 months.
- PhD-level roles or specific research-related roles.
- Student Visa holders switching to a Skilled Worker Visa within the UK.
6. How ISC Liability Affects Employers and Employees
For Employers
- Increased Sponsorship Costs: The ISC adds to the cost of hiring skilled foreign workers, especially for longer sponsorship terms.
- Financial Incentives to Hire Locally: With the ISC, hiring UK residents may be more financially attractive.
For Employees
- No Direct Cost: Employees are not responsible for the ISC payment.
- Potential Employment Impact: High ISC costs may impact hiring decisions in certain industries, especially for smaller organizations.
7. Frequently Asked Questions
- Can an employer pass the ISC cost to the employee?
No, the ISC must be paid by the employer and cannot be charged to the employee. - What if a worker’s visa is shortened or terminated early?
Employers cannot get a refund on the ISC if the worker’s visa term is shortened or if employment ends early. - Are charities required to pay the full ISC amount?
Charities and small businesses pay a reduced ISC rate of £364 per year. - Does the ISC apply to Tier 1 visas?
No, the ISC is typically applied to Tier 2 visas (now part of the Skilled Worker route) and Global Business Mobility routes. - Can the ISC be refunded if the visa application is rejected?
Yes, the ISC will be refunded if the visa application is denied.
8. Conclusion
“ISC liable” signifies an employer’s obligation to pay the Immigration Skills Charge when hiring skilled foreign workers in the UK. This charge, aimed at funding skills development for the local workforce, adds a significant cost to international recruitment. For employers, understanding ISC liability and planning accordingly is essential to managing visa sponsorship costs effectively.