Certificate of Sponsorship Cost: The Complete Guide for HR Professionals

Navigating the Certificate of Sponsorship (CoS) process is essential for any HR professional looking to hire skilled talent from overseas. This guide explores the costs associated with obtaining a CoS, breaking down all fees and the steps involved in sponsoring a non-UK employee.

What is a Certificate of Sponsorship (CoS)?

A Certificate of Sponsorship is an electronic document required for sponsoring overseas workers in the UK. It provides a unique reference number that the sponsored worker needs to apply for their visa, such as a skilled worker visa or health and care worker visa.

Types of CoS:

• Defined CoS: For candidates applying from outside the UK.
• Undefined CoS: For those already in the UK or extending an existing visa.

Understanding the appropriate CoS type ensures compliance and streamlines the sponsorship process for HR departments.

Understanding the Costs of Sponsorship

Sponsorship involves multiple costs, so it’s important for HR teams to budget accurately. Here’s a breakdown of the key fees:

Certificate of Sponsorship Fee

The certificate of sponsorship cost itself varies based on the type and duration of employment.

Immigration Skills Charge (ISC)

The Immigration Skills Charge applies to most sponsored hires and varies by:

• Company size (small or large organization).
• Length of employment (typically 1-5 years).

For a customized calculation of ISC and other fees, use our visa fees calculator for accurate budgeting.

Additional Costs

1. Visa Application Fees: Typically covered by the employee but may be subsidized by the employer.
2. Immigration Health Surcharge (IHS): A mandatory charge covering the worker’s healthcare in the UK.
3. Administrative and Legal Fees: These may include costs for managing the sponsor management system (SMS) and other legal or compliance requirements.

Step-by-Step Guide to Obtaining a CoS

Follow these steps to ensure a smooth sponsorship process:

Step 1: Obtain a Sponsor Licence

Before applying for a CoS, ensure your organization holds a valid sponsor licence. For more information on the requirements, refer to our sponsor licence eligibility guide.

Step 2: Set Up and Use the Sponsor Management System (SMS)

The SMS is the tool through which sponsors assign CoS. HR managers should familiarize themselves with the sms level 1 user roles and responsibilities to manage the sponsorship process effectively.

Step 3: Assign the Certificate of Sponsorship

Using the SMS, issue the CoS to the chosen candidate. Precision in this step avoids delays and additional costs.

Example of Sponsorship Costs: A Sample Calculation

Here’s a sample cost breakdown for sponsoring a skilled worker for three years:

• Certificate of Sponsorship fee: £199
• Immigration Skills Charge: £1,000/year (small business) or £364/year (large business)
• Health Surcharge: £624/year per applicant

For a customized calculation, refer to our visa fees calculator, which includes government fees and related costs.

Timelines and Expected Processing Times

The CoS process can take several weeks, depending on the specifics of the application. Generally:

• Standard Processing: Can take several weeks, especially during peak times.
• Priority Processing: Faster service available at an additional fee.

For more details, see our guide on Timelines related to the Skilled Worker sponsoring process.

Financial Planning for Sponsorship Costs

Sponsoring an overseas worker is a significant investment. To ensure a smooth process, we recommend budgeting for:

• CoS fees
• Immigration Skills Charge
• Any potential administrative or compliance fees

For more insights on budgeting, refer to our sponsor licence fees page, which includes initial and renewal costs, as well as additional financial considerations.

Frequently Asked Questions

• What if the sponsored employee leaves early? Refunds are generally not available for CoS fees. For advice on managing early departures, see our guide on sponsor licence compliance.
• Are there renewal costs? Yes, sponsorship renewals require a fresh sponsor licence application and incur additional fees.
• What documents are required? For a complete list, refer to appendix a sponsor licence documents for detailed guidance.

Conclusion

Managing the costs and processes associated with obtaining a Certificate of Sponsorship requires careful planning. With a clear understanding of these steps, HR professionals can more effectively recruit and support skilled international talent. For further assistance, contact us to get in touch with our team.