Cost Of UK Skilled Worker Visa For Employers

Is Sponsoring Foreign Workers Expensive?

The costs associated with sponsoring foreign workers depend on various factors, such as the size and financial turnover of the company or the type of workers to be employed. 

Larger companies or organisations will be required to pay increased sponsorship fees in order to sponsor a foreign worker to live and work within the UK for the specified time period. If your business or organisation qualifies as a small business, the sponsorship fees are lower, making it easier to afford the cost of recruiting foreign workers.

IAS can provide a host of support and advice for companies looking to employ workers from overseas. Opting for tailored immigration legal advice will help to reduce costs, especially as most visa fees are non-refundable even if the application is rejected. 

Sponsoring Foreign Workers as a Small Business

The financial impact of sponsoring foreign workers can vary depending on multiple factors. If your company or organisation is within the definition of a small business as designated by the Companies Act, you will have to pay the application fee for a small company, which is £536 for a sponsor licence.

Your company is deemed a small company if at least two of the following criteria can be met:

• There must be no more than 50 employees at your company or organisation.
• Your company must have a balance sheet total of no more than £5.1 million.
• Your company must not turnover more than £10.2 million.

Sponsoring Foreign Workers as a Large Business

Companies that do not fall within the requirements of a small business are required to pay the large business fee of £1,476 for a sponsor licence.

Skilled Worker Visa Fees: Full Breakdown

In addition to paying for a sponsor licence, you’d need to pay for the visa application. The cost of this depends on the visa your employee needs. Here, we break down the cost of sponsoring an employee under the skilled worker visa.

Applying from outside the UK:

• Up to 3 years: £719 for every applicant
• In excess of 3 years: £1,420 for each applicant.

Applying from within the UK (switching, updating, or extending)

• Up to 3 years: £827 for each applicant.
• In excess of 3 years: £1,636 for each applicant.

Roles on the Immigration Skill List (ISL):

• Up to 3 years: £551 for each applicant.
• Over 3 years: £1,084 for each applicant.

When applying for a Skilled Worker Visa, you also should ensure that your sponsored worker meets the financial support requirements. They must have at least £1,270 available to show that they are able to support themself when you arrive in the UK. If you are taking care of their costs during their first twelve months in the UK, then you (the employer) have to show proof, not the employee. If the employee has been in the UK with a valid visa for at least 12 months, they could be exempt from this requirement. 

Costs And Eligibility For Premium Sponsor Scheme

The UK Government offers premium customer service, which can enhance the level of support and advice for organisations that sponsor and employ workers from overseas. 

Each premium customer will have access to their own dedicated account manager, who can provide ongoing updates on the processing of submitted applications.

In order to be able to join the Premium and Fast-Tracked services, your business or organisation must meet certain criteria:

• have an A-rating in all tiers of your Sponsor License.
• Having no civil penalties from the UKVI in the past 3 years and have paid in full any penalties issued before that.

The cost of the Premium services is £25,000 per year for large or medium organisations. Sponsors who qualify as a charitable organisation or small business and who have paid the lower licence fee are required to pay £8,000 per year. Note that this service is optional.

Costs For Faster Skilled Worker Visa Processing Times

You may be eligible to pay for a reduced decision time on your Skilled Worker Visa application. This is called the ‘priority service’ and means that you’ll usually receive a decision within five working days. This time starts from either the day of the biometrics appointment if your employee proves their identity in person or the working day after uploading your documents when using the UK Immigration: ID Check app.

If you choose to pay for ‘super priority services’, the visa application will receive a decision within the end of the next working day or soon after. The cost of this is £1,000. If the Home Office requires additional information, the time required to reach a decision could be longer. If the decision takes longer, you are unlikely to receive your money back.

If you are eligible for the super-priority service, you will be able to choose the ‘priority service’ when you apply. This will cost £500 in addition to your application fee.

Certificate of Sponsorship Costs

A Certificate of Sponsorship (CoS) is required for all Skilled Worker Visa applicants as part of the process of applying for the UK Visa. Each CoS must include details of the job role, employer contact information, rate of salary and the start and end date of the employment.

The cost of assigning each Certificate of Sponsorship is £239 for the skilled worker visa. It is mandatory each time you recruit a sponsored worker, and you must pay the charge again if you need to reissue a certificate. You may also need to pay the fee when updating the CoS if a sponsored employer changes role or updates their details. 

Immigration Skills Charge

An Immigration Skills Charge is payable by the employer when the Certificate of Sponsorship is issued. This is payable on an annual basis for each sponsored worker.

The cost of the Immigration Skills Charge is £1,000 per year for each migrant worker on a Skilled Worker Visa. If your business qualifies as a small business or charity, then a reduced rate of £364 per annum applies.

In some circumstances, this fee may be waived, but you should reach out to an immigration expert for advice on when this exemption would be applied.

Immigration Health Surcharge

The National Health Service (NHS) Immigration Health Surcharge costs £1,035 annually for immigration and visa applications when employing someone over the age of 18 under the skilled worker visa route. The sponsored worker must have paid enough immigration health surcharge to last their stay within the UK before their arrival. For example, for three years, 3 x £1035 = £3,105 for a single applicant.

If the sponsored employee has dependents, they also need to pay the IHS fee for each dependant. The cost for dependants is usually the same as the cost for the main visa applicant.

What is the Total Cost for the Skilled Worker Visa?

The table below contains an easy-to-skim view of the breakdown provided above.

Sponsorship Fees for the Skilled Worker Visa

Skilled Worker Visa Application Fee

Others

Do You Need Help With Hiring Skilled Workers From Abroad? IAS Can Help

Hiring skilled workers as an employer can be challenging and sometimes overwhelming, especially when trying to understand the associated costs and general requirements.

Sponsoring overseas workers can be time-consuming, so you may want to enlist the support of an immigration lawyer to help make the process as straightforward and stress-free as possible.

If you need assistance with hiring skilled workers from aboard and have questions about the process or requirements, IAS is here to help.

Whether you seek expert guidance on right-to-work checks, applying for a Sponsor Licence, issuing Certificates of Sponsorship, or other Skilled Worker visa costs, contact our team today at +44 (0)333 414 9244 or online.