Who actually pays for what? Can employers pass costs to workers?

The law is clear on this: employers must pay the Sponsor Licence fee, the CoS fee, and the Immigration Skills Charge. These cannot legally be passed to the worker – doing so is a breach of immigration rules and could result in losing the licence. However, the visa application fee itself and the Immigration Health Surcharge (£1,035/year) can technically be paid by either party. In practice, many employers cover everything as part of the relocation package, especially for senior or hard-to-fill roles.

Are there any ways to reduce or avoid the Immigration Skills Charge?

A few situations are exempt. PhD-level roles don't attract the charge. Student visa holders switching to Skilled Worker are also exempt. And the Health & Care visa route has its own exemption – no ISC at all. Small companies and charities pay a reduced rate (£364/year vs £1,000/year for large companies). Other than that, it's a fixed cost that simply comes with the territory of sponsoring overseas workers.

What happens to the fees if the visa gets refused or the worker leaves?

If the visa application is refused or withdrawn, you'll typically get the Immigration Skills Charge refunded – it just takes a while to process. The Health Surcharge gets refunded too. The bad news? The Certificate of Sponsorship fee (£239) is generally non-refundable. If the worker leaves after arriving, you're out of luck on fees already paid. Some employers build in clawback clauses requiring workers to repay relocation costs if they leave within a certain period.

UK Visa Sponsorship Cost for Employers (2025 Breakdown)

Hiring talent from overseas is an investment. But precisely how much does it cost? Use this guide to calculate the exact budget required to sponsor a Skilled Worker in 2025.

Quick Summary: Expect to pay between £3,000 and £7,000 upfront for a 3-year visa, depending on your company size.

The 4 Main Costs

There are four distinct fees you need to be aware of. Some are one-off, others apply per employee.

1. Sponsor License Application Fee

You pay this once every 4 years to hold the license.

Small Companies / Charities: £536
Medium / Large Companies: £1,476

(Small company definition: Less than 50 employees, or turnover under £10.2m)

2. Certificate of Sponsorship (CoS)

You pay this for every individual you sponsor.

Skilled Worker: £239 per certificate.
Temporary Worker: £25 per certificate.

3. Immigration Skills Charge (ISC)

This is the largest cost. You must pay this for every year of the visa you sponsor. It effectively is a tax on hiring overseas talent.

Company Size	Cost Per Year	Cost for 3 Years	Cost for 5 Years
Small / Charity	£364	£1,092	£1,820
Medium / Large	£1,000	£3,000	£5,000

4. International Health Surcharge (IHS)

Ideally, the employee pays this (£1,035 per year). However, many employers chose to cover this expense as part of the relocation package to remain competitive.

Visual Guidance: [Insert Bar Chart: “Total 3-Year Cost: Small vs Large Company” comparing the ~£2k vs ~£5k difference.]

Real World Example

Looking for a sponsor?

Check our database to see which companies are licensed.

Search Now

If you are a Small Company hiring a software engineer for 3 years:

License (if new): £536
CoS Assignment: £239
ISC (3 x £364): £1,092
Total Employer Cost: £1,867 (excluding legal fees).

For more details on the process, read our Complete Guide to Sponsorship.

UK Visa Sponsorship Cost for Employers (2025 Breakdown)

Quick Summary

The 4 Main Costs

1. Sponsor License Application Fee

2. Certificate of Sponsorship (CoS)

3. Immigration Skills Charge (ISC)

4. International Health Surcharge (IHS)

Real World Example

Continue Reading

Company Sponsor Licence Status Explained

New UK Sponsorship Rules 2025: What Has Changed?

The Complete Guide to UK Visa Sponsorship (2025)

Weekly Sponsor Updates