Sponsoring skilled overseas workers can open doors to a world of talent for your business, allowing you to tap into a global pool of the best and brightest professionals. However, it's essential to understand the costs associated with the sponsorship process to effectively manage your recruitment budget. In this comprehensive guide, we will delve into the various expenses tied to acquiring and maintaining a sponsor licence. These include the sponsor licence application fee, fees for assigning Certificates of Sponsorship (CoS) to sponsored workers, and the Immigration Skills Charge (ISC).
Why Should You Have a Sponsor Licence?
Obtaining a sponsor licence is crucial for businesses looking to recruit talent from abroad. It not only enables you to fill key roles with qualified professionals but also ensures that your recruitment processes are compliant with UK immigration laws. However, understanding the sponsor licence fees is a critical step in this process, as it helps you budget effectively and avoid unexpected costs. For more details on the application process, you can refer to our detailed guide on sponsor licence application.
Breakdown of Sponsor Licence Fees
Sponsor Licence Application Fee
The sponsor licence fee varies depending on the type of licence and the size or charitable status of your UK-based organization. There are two primary types of licences:
- Worker Licence: This licence allows you to recruit migrant workers for various skilled positions, often for long-term roles such as the Skilled Worker route. For small or charitable sponsors, the fee is £536, while medium or large sponsors pay £1,476. Learn more about the sponsor licence application process and requirements.
- Temporary Worker Licence: This licence is for sponsoring workers in short-term roles, including the remaining Global Business Mobility routes classified as 'Temporary Worker.' The fee for a 'Temporary Worker' licence is £536 for all organizations.
Priority Service Sponsor Licence Fee
Typically, most sponsor licence applications are processed within eight weeks. However, for those seeking expedited service, an additional £500 fee offers a decision within 10 working days. This is known as the Sponsor Licence Priority Service, which can be beneficial for businesses needing to secure their licence quickly. Please note that this service doesn't guarantee a quicker turnaround, especially if a compliance visit is necessary. To understand more about the timeline, check out our article on how long does a sponsor licence take.
Cost of Assigning Certificates of Sponsorship (CoS)
In addition to the sponsor licence fee, you'll incur fees when assigning a Certificate of Sponsorship (CoS) to migrant workers. Assigning CoS for 'Temporary Worker' routes costs £21, while assigning them for 'Worker' routes costs £239. It's important to ensure that these fees are factored into your overall budget for hiring international talent.
Immigration Skills Charge (ISC)
The Immigration Skills Charge is an additional expense associated with assigning a CoS to Skilled Worker route recruits. Employers will need to pay the relevant ISC for most workers they intend to sponsor. Companies sponsoring individuals in the UK who will be switching from a valid Student Visa to a Skilled Worker Visa are exempt from paying the ISC. Read more about exemptions and other details on the certificate of sponsorship process.
The ISC varies based on your organization's size and the prospective employee’s intended length of stay in the UK:
- Small or charitable sponsors pay £364 for the first 12 months, with additional 6-month increments at £182.
- Medium or large sponsors pay £1,000 for the first 12 months, with additional 6-month increments at £500.
Ongoing Sponsor Licence Costs
Beyond the initial licence fees, it's essential to be aware of ongoing costs. Meeting minimum salary requirements for sponsored workers is vital. For example, the Skilled Worker route mandates a minimum annual salary of £38,700 or the going rate for the occupation. More information about the going rate can be found on the Home Office website.
Additionally, consider covering visa-related costs for sponsored workers, including visa application fees, premium processing fees, and healthcare surcharges (if applicable). To get an accurate estimate of these expenses, you can use our visa fees calculator.
The Importance of Compliance and the Role of the Sponsor Management System (SMS)
Maintaining compliance with Home Office regulations is crucial to retaining your sponsor licence. Utilizing a sponsor management system (SMS) can help streamline this process, ensuring that you track and report the necessary information accurately. Failure to comply with these requirements can lead to your sponsor licence being revoked, which can severely impact your ability to hire international workers.
How Borderless Can Help You
At Borderless, we can help your company, big or small, attain a Sponsor Licence so you may source valuable talent without restrictions and all the faff—hire the Borderless way! 🚀 To date, we have a 100% success rate for Sponsor Licence applications and we strive to make sure that every company that uses our services is compliant with the Home Office regulations for sponsors in the UK. Book a consultation call today.
.png)
