Immigration Skills Charge (ISC) Refund: Employer’s Guide 2025

What Is the Immigration Skills Charge (ISC)?

The Immigration Skills Charge (ISC) is a mandatory fee employers must pay when sponsoring overseas workers under the Skilled Worker or Senior or Specialist Worker visa routes.

The ISC is payable upfront when assigning a Certificate of Sponsorship (CoS). Current rates are:

• £364 per year for small or charitable sponsors
• £1,000 per year for medium or large sponsors

For example, a large sponsor assigning a three-year CoS must pay £3,000 upfront.

Understandably, sponsors often want to know whether some or all of this fee can be refunded if circumstances change.

When Can Employers Get a Full ISC Refund?

You may receive a full refund of the ISC if:

• ISC was paid in error (e.g. the role was exempt).
• Unused CoS: the worker never uses the Certificate of Sponsorship.
• Visa not granted or not used: the application is withdrawn, refused, or the worker does not take up the job.

When Is a Partial ISC Refund Available?

Partial refunds may apply if:

• Overpayment: e.g. sponsor misclassified as “large” when they are actually “small”.
• Shorter visa granted: the worker’s visa is issued for a shorter period than requested.
• Early termination: the worker leaves before their CoS end date.

Refunds are calculated pro-rata for the unused period of sponsorship, except for the first year.

When Is an ISC Refund Not Possible?

Refunds are not granted in the following cases:

• First year of sponsorship: always non-refundable.
• Internal job changes: worker remains with the same employer but changes role.
• Sponsorship of 12 months or less.
• Switching visa route: worker changes to another route but remains employed (e.g. Global Talent or Spouse visa).
• Dormant licence or compliance breaches: including licence revocation or visa curtailment.

How Long Do ISC Refunds Take?

Refunds are usually processed within 90 days of:

• The sponsor notifying UKVI that the worker has not started or left early.
• The CoS expiring unused.
• The deadline for administrative review passing without success.

Refunds are made through Worldpay to the same debit or credit card used for payment.

Common ISC Refund Challenges

In theory, ISC refunds are automatic. In practice, many employers face delays or errors, especially when:

• UKVI systems fail to trigger the refund.
• There is a dispute about the correct sponsor size.
• Employment end dates are not correctly updated in the Sponsorship Management System (SMS).

How to Ensure Your ISC Refund Is Processed

1. Notify UKVI promptly when employment ends early.
2. Update the SMS with the correct end date.
3. Keep records of CoS, payment receipts, and correspondence.
4. Check your sponsor category (small/large) to avoid overpayment.
5. Follow up with UKVI if no refund arrives within 90 days.

ISC Refund FAQs

How much is the ISC?
£364 per worker per year for small/charitable sponsors; £1,000 for medium/large sponsors.

Can I get a refund if the worker leaves after six months?
Yes — you may receive a refund for the unused full years, but not for the first year.

What if the visa is refused?
A full refund should be issued if the CoS is unused due to refusal or withdrawal.

Does the refund go back to the employer or the worker?
Always to the employer, via the same payment card.

What if I never received my refund?
Contact UKVI or seek immigration compliance support to chase the refund.

👉 See our immigration glossary for key terms.

Conclusion

The Immigration Skills Charge refund rules are clear on paper, but in reality, many employers struggle to recover funds without chasing UKVI.

At Borderless, we help sponsors manage ISC payments, identify refund opportunities, and avoid compliance pitfalls that put your sponsor licence at risk.

👉 Talk to Borderless today for expert guidance on sponsor compliance and ISC refunds.