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 fee, fees for assigning Certificates of Sponsorship (CoS), 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 costs is a critical step in this process, as it helps you budget effectively and avoid unexpected expenses. For more details on the application process, you can refer to our detailed guide on the sponsor licence application.
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.
- Small or charitable sponsors: £574 (was £536)
- Medium or large sponsors: £1,579 (was £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 temporary worker sponsor licence routes classified under Global Business Mobility. The fee for a 'Temporary Worker' licence is £536 for all organizations.
Sponsor Size Classification Update
As of April 2024, a company is considered large if it meets any two of the following:
- Annual turnover greater than £15 million (previously £10.2 million)
- Balance sheet total more than £7.5 million (previously £5.1 million)
- The company does not have more than 50 employees
Sponsor Licence Priority Service
Most sponsor licence applications are processed within eight weeks. However, businesses can opt for a faster decision (within 10 working days) by paying an additional £500 for the Sponsor Licence Priority Service. This does not guarantee a faster decision if a compliance visit is required.
Cost of Assigning Certificates of Sponsorship (CoS)
Assigning a certificate of sponsorship to a migrant worker incurs additional costs:
- Worker routes: £525 per CoS (was £239)
- Temporary Worker routes: £21 per CoS
Make sure to factor in these fees when budgeting for international hires. Learn more about Certificate of Sponsorship Costs.
Immigration Skills Charge (ISC)
The ISC applies to most Skilled Worker route employees. You do not have to pay the ISC if the worker is switching from a Student visa to a Skilled Worker visa inside the UK.
- Small or charitable sponsors: £364 for the first 12 months, then £182 per 6-month extension
- Medium or large sponsors: £1,000 for the first 12 months, then £500 per 6-month extension
Ongoing Sponsor Licence Costs
Beyond these application and CoS fees, ongoing obligations include:
- Meeting new minimum salary thresholds: For Skilled Workers, this is now £38,700 or the occupation's going rate, whichever is higher
- Covering worker visa application costs, Immigration Health Surcharge, and optional premium services
Use our visa fees calculator for a more tailored cost estimate.
Compliance Requirements & Sponsor Management System (SMS)
Staying compliant is just as important as obtaining the licence. Using the Sponsor Management System (SMS), you must:
- Report changes (e.g. job title, salary, work location)
- Keep records updated and accessible
- Notify UKVI of business growth (from small to large or vice versa) within 20 working days
- Avoid charging applicants for legal/visa support unless you are genuinely providing those services
- Ensure Key Personnel listed on the application were not part of a previously refused sponsor licence (to avoid automatic rejection)
How Borderless Can Help
At Borderless, we help organisations — big or small — secure their sponsor licence and stay compliant with Home Office rules. We have a 100% success rate on licence applications and can handle everything from paperwork to compliance support.
Ready to simplify international hiring? Get in touch
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