Why Should You Have A Sponsor Licence?
Sponsoring skilled overseas workers can open doors to a world of talent for your business. It allows 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)
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. Two primary types of licences are the 'Worker' and 'Temporary Worker' 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. Find out more about Sponsor Licenses here.
- 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.
Please note that this service doesn't guarantee a quicker turnaround, especially if a compliance visit is necessary.
Certificate of Sponsorship Fee
In addition to the sponsor licence fee, you'll incur fees when assigning Certificate of Sponsorship (CoS) to migrant workers. Assigning CoS for 'Temporary Worker' routes costs £21, while assigning them for 'Worker' routes costs £199.
Immigration Skills Charge
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 that they intend to sponsor. Companies intending to sponsor 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 Student Switchers here.
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 licence fees, meeting minimum salary requirements for sponsored workers is vital. For example, the Skilled Worker route mandates a minimum annual salary of £26,200 or the going rate for the occupation. More information about the going rate can be found on the Home Office website here.
Additionally, consider covering visa-related costs for sponsored workers, including visa application fees, premium processing fees, and healthcare surcharges (if applicable).
It is clear that sponsoring skilled overseas workers offers substantial benefits but it also comes with associated costs. Understanding and budgeting for these expenses is essential for successful recruitment and compliance with immigration regulations.
How Can Borderless Help You?
We can help your company, big or small, to 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 client/company that use our services are compliant with the Home Office regulations for sponsors in the UK.