In recent months, we have received a large number of enquiries from businesses in the UK interested in applying for a Skilled Worker visa sponsor license. Some of these businesses have relied exclusively on hiring staff from within the EU, and due to the ending of free movement as a result of Brexit, they can no longer do so. As a result, due to the lack of supply of skilled staff in the UK, they need to apply for a sponsor license. When assisting UK businesses applying for sponsor licenses, in addition to explaining the duties and responsibilities they will need to adhere to, we also outline the costs they can expect as a result of hiring non-UK staff. There are several costs which need to be taken into consideration when sponsoring staff from outside of the UK, including the license application fee, and other charges which are paid when hiring staff. There are additional costs for premium and priority services which may need to be factored into your calculations. In this article, we will provide an overall picture of how much it costs to sponsor a migrant worker in the UK.
Costs Associated With Systems, Processes, And Staff Necessary To Maintain Compliance
One cost which is often overlooked is the additional overhead of putting in place systems, processes, and people to ensure that the reporting, record keeping, and recruitment duties of the sponsor license holder are met fully and consistently. This may involve hiring new staff, putting in place new IT systems and software, and providing additional training. It is important to take these into account as not doing so may lead to a lack of the investment necessary to meet your obligations as a license holder.
The Cost Of The Sponsor License Application
One of the first costs you will need to consider is the upfront cost of the sponsor license. For small and charitable businesses, the current application fee is £536, and for medium and large businesses, the fee is £1,476. If you wish to pay extra to have your application processed within ten working days (as opposed to the standard two months), there is an additional charge of £500. The sponsor license is granted for four years, hence when applying to renew, the application fee/s will need to be paid each time.
Immigration Skills Charge
The next cost to consider is the Immigration Skills Charge. This is paid each time you issue a Certificate of Sponsorship. The Home Office guidance states that sponsoring employers are required to pay the immigration skills charge if the employee is applying from outside the UK to work in the UK for six months or more, and for an employee applying from inside the UK for any length of time. It is worth noting that you will not need to pay the charge for intra-company graduates or for international students (who have been studying in the UK) switching to a Skilled Worker visa. It is also not paid for any of the following roles (note -the four-digit code in brackets is the standard occupation code – SOC):
- chemical scientists (2111)
- biological scientists and biochemists (2112)
- physical scientists (2113)
- social and humanities scientists (2114)
- natural and social science professionals not elsewhere classified (2119)
- research and development managers (2150)
- higher education teaching professionals (2311)
- clergy (2444)
- sports players (3441)
- sports coaches, instructors or officials (3442)
The cost of the immigration surcharge is as follows:
- Small or charitable sponsors
- First-year - £364
- Each additional six months: £182
- Medium or large sponsors
- First 12 months: £1,000
- Each additional six months: £500
When working out how much you will need to pay for each migrant worker, bear in mind that where you are hiring a person for more than six months, but less than a year, you will need to round the fee up to the full year. The immigration skills charge is also paid in full, hence if you are sponsoring a worker for five years, medium or large organisations will need to pay £5,000.
Cost Per Certificate Of Sponsorship Issued
On top of the immigration skills charge, you will also need to pay £199 for each worker you issue a Certificate of Sponsorship (CoS) to. There is no CoS charge, however, for migrant workers from Austria, Belgium, Croatia, Republic of Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, North Macedonia, Norway, Poland, Portugal, Slovakia, Spain, Sweden or Turkey.
Cost Of The Priority Change Of Circumstances Service
UK Visas and Immigration (UKVI) provide an optional service for sponsor license holders who need to make an urgent notification of change, in accordance with their reporting duties. The priority change service is typically used to increase the number of CoSs which can be issued or to update who is able to manage the Home Office’s SMS system. Up to 60 priority change requests can be sent each day, and each one costs £200. While not all businesses will use this service, some do, and hence need to take this cost into account.
Cost Of UKVI Premium Customer Service
Some sponsor license holders choose to pay extra to have a dedicated UKVI account manager for support with their sponsorship needs; this is referred to as the premium customer service, and comes at a cost of £25,000 for large businesses per year, and £8,00 for SMEs.
Wrapping Up
One of the most common mistakes we see when speaking to sponsor license applicants is that they have not calculated the total cost of hiring workers from outside of the UK. While it may not be possible to be 100% accurate when it comes to the cost of training, staff, and systems, if you know how many workers you will need in the next year, you can work out how much you will need to pay in Home Office fees. And while it may seem expensive, the enormous value and benefit of being able to hire from outside the UK should also be taken into account.
