If you have tried and failed to recruit workers from inside the UK, the next step might be to cast your net further afield. Hiring overseas workers for highly skilled roles is a common way for businesses to close skills gaps. But this route is not without its additional costs.

To be allowed to hire workers from outside the UK, you need to become a UK visa sponsor. This will enable you to issue a Certificate of Sponsorship (CoS) when workers apply for a UK Skilled Worker Visa.

This process is not cheap, but there is financial assistance available. In this guide, we will explore the costs associated with becoming a UK visa sponsor and how you can lower your costs as an employer.

How much are the UK sponsor licence fees?

There are multiple stages to the UK sponsor licence fees. How much you pay will depend on a number of factors, including:

● The size of your company

● Your annual turnover

● The value of your assets

● If you have charitable status

● The length of the employment contract

● The type of role you are hiring for

In general, there are three parts to the visa sponsorship fees:

● The fee for becoming a UK visa sponsor (payable once every four years)

● The Certificate of Sponsorship (payable per worker)

● The Immigration Skills Charge (payable per worker, per year)

Some of these fees are flat fees payable once. While others will depend on who you are hiring and for how long.

UK sponsorship licence fees

The cost of becoming a UK visa sponsor will vary depending on the size of your business and the type of workers you want to hire. At present, it is £536 for a small business or charity to become a UK visa sponsor for a worker or a temporary worker. It costs £1,476 for a medium to large company to become a UK visa sponsor for a worker, and £536 to sponsor temporary workers.

If a medium to large firm has a temporary worker sponsor licence and would like to add a worker to this, they will pay £940.

Certificate of Sponsorship fee

The CoS is required every time you want to attach a worker to your sponsorship licence. There is a flat fee of £199, regardless of the size of your company. If your worker’s employment visa is denied, this fee will be refunded to you.

Immigration skills charge

The immigration skills charge is a fee based on the size of your company and the duration of the worker contract. It is currently £364 for the first 12 months of the contract and £182 for each additional six months for small and charitable businesses. Medium to large firms will pay £1,000 for the first 12 months and then £500 for each additional six months.

The maximum length of time an employer can sponsor a visa is 5 years, so there is a maximum amount payable. For small businesses and charities, the maximum is £1,820 and for medium to large firms, the maximum is £5,000.

If the worker will be in the UK for longer than 6 months but less than a year, you will still need to pay the full 12-month initial fee.

What support is available to businesses?

Companies that would struggle to pay the full fees can often seek support by qualifying as a small business or a charity. There is no option to be fully exempt from paying the fees, but there are ways you can reduce your liability.

● You don’t have to pay the Immigration Skills Charge if you hire workers with specific occupation codes.

● You also don’t have to pay this if you are sponsoring a worker who will be switching from a UK student visa.

● There are also ways to skip these fees if you are sponsoring someone on the Global Business Mobility Senior or Specialist Worker route.

How do I qualify as a small business?

To qualify as a small business, you will need to demonstrate that your company meets at least two of the following conditions:

● Annual turnover of less than £10.2 million

● Assets worth less than £5.1 million

● You have 50 employees or fewer

You can qualify as a charity if you have charitable status in England, Wales, Scotland or Ireland. If you’re not sure if you qualify as a charity, it’s a good idea to get in touch with UKVI to learn more or speak with our specialist UK immigration lawyers.

Who is exempt from the fees?

There are no groups that are fully exempt from the fees, but hiring for certain roles will enable you to avoid paying the Immigration Skills Charge. These are roles that are currently in high demand in the UK, so the UK government has made them exempt from the fees to make it easier for employees to find workers. Examples (and their occupation codes) include:

● chemical scientists (2111)
● biological scientists and biochemists (2112)
● physical scientists (2113)
● social and humanities scientists (2114)

For the current full list, check with UKVI.

Can businesses pass these expenses on to employees?

It is certainly possible to pass these expenses on to employees, but this can make the hiring process more difficult. This is because employers often need to offer incentives for workers to relocate to the UK. Some employers will also cover their applicant’s visa fees and additional fees such as the Immigration Health Surcharge.

Get expert advice from our UK immigration lawyers

If you’re struggling to navigate the world of UK visa sponsor licences, we can help. Our expert team have helped countless companies up and down the country to successfully secure their UK visa sponsor licences.

We can help to streamline the process so that you feel empowered every step of the way. We won’t leave you in the dark or surprise you with unexpected fees. When you work with our expert UK immigration lawyers, you can be confident of a favourable outcome. Stay Connect with Our legal blog Also You can write for us law