UK Sponsor Licence Costs in 2023: An Overview

In today’s globalized business landscape, the ability to recruit international talent is paramount for UK companies. Central to this is the Sponsor Licence, a mechanism that allows businesses to employ overseas workers. However, understanding the associated costs can be challenging. This summary provides a concise breakdown of these costs for businesses considering sponsoring overseas talent in 2023.

Why Understand Sponsor Licence Costs?

For UK businesses, from fledgling startups to established multinationals, hiring international talent can be a game-changer. But to do so, understanding the costs of the Sponsor Licence is crucial. These costs can vary, encompassing everything from initial application fees to charges related to the employment and maintenance of foreign workers. Being well-informed about these costs aids in effective budgeting and strategic decision-making.

Primary Costs for Employers:

1. Sponsor Licence Fee: This is the initial cost for businesses wanting to hire from abroad. The fee varies based on the company’s size. As of now, small or charitable organisations pay £536, while medium or large entities pay £1,476. It’s essential to check the official government website for the latest figures.
2. Certificate of Sponsorship (CoS) Fee: The CoS is a digital document detailing the job and the prospective employee. Each sponsored worker requires a CoS, costing the employer £199 per certificate.
3. Immigration Skills Charge (ISC): This charge encourages local workforce training. The fee depends on the company’s size and the employment duration. Small businesses and charities pay £364 for the first year and £182 for subsequent 6-month periods. In contrast, medium and large companies pay £1,000 for the first year and £500 for each following 6-month period.

Costs for Workers:

1. Skilled Worker Visa Fee: This fee is shouldered by the potential employee. The cost varies based on the application’s location and the visa’s duration. For applications outside the UK, it’s £610 for up to three years and £1,220 for longer periods. Inside the UK, it’s £704 for up to three years and £1,408 for longer durations. Some nationalities receive a £55 discount.
2. Immigration Health Surcharge (IHS): This fee provides immigrants with NHS access. The current rate stands at £624 annually, with some exceptions and discounts.

Factors Influencing Costs:

The size of the business, the specific role, and the worker’s nationality can significantly impact the Sponsor Licence’s total cost. These elements can influence the overall financial commitment for both the employer and the prospective employee.

In conclusion, understanding the Sponsor Licence costs is vital for UK businesses aiming to integrate global talent. Proper knowledge ensures effective budgeting and smooth onboarding of international employees.

Read the full Guide on Sponsor Licence Fees on Our Immigration Blog.

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