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UK Skilled Worker Visa: Cost & Sponsor Licence for SMEs
Summary:
- To hire most non-UK/Irish workers you must hold a sponsor licence first — a Worker licence costs £611 for small/charity sponsors and £1,682 for medium/large ones and now lasts 10 years (renewals were abolished in April 2024).
- The employer-only costs that cannot be passed to the worker are the £525 Certificate of Sponsorship and the Immigration Skills Charge — £480/year (small) or £1,320/year (large) after the +32% rise on 16 December 2025.
- Since 22 July 2025 the general salary threshold is £41,700 (or the going rate, whichever is higher) and the skill level rose to RQF 6 (degree level); a new-entrant route allows £33,400.
- All in, sponsoring one worker from overseas for 3 years runs about £6,500 (≈£2,000 of it mandatory employer cost), of which the visa fee and the £1,035/year IHS are legally the applicants.
Quick answer: A UK SME must hold a sponsor licence (£611 small / £1,682 large, valid 10 years) before it can sponsor a Skilled Worker. Per hire it then pays a £525 Certificate of Sponsorship and the Immigration Skills Charge (£480/year small, £1,320/year large) — neither of which can be recovered from the worker — while the applicant pays the visa fee (£819–£1,618 from overseas) and the £1,035/year Immigration Health Surcharge. Since 22 July 2025 the worker must earn at least £41,700 (or the going rate) and the role must be RQF 6 (degree-level). Sponsoring one worker for three years costs roughly £6,500 in total.
Do you need a sponsor licence to hire from abroad?
Yes. To employ almost anyone who is not a British or Irish citizen and does not already have a UK work right, an employer must hold a valid sponsor licence in the “Worker” category before it can assign a Certificate of Sponsorship and the worker can apply for a Skilled Worker visa. There is no way around the licence for direct employment — the only alternative is to use an Employer of Record in the UK that is already the legal employer (more on that below).
How to get a sponsor licence
The application is online and, per GOV.UK, most decisions take under 8 weeks (a priority service gives a decision in 10 working days for £750). The main steps:
- Confirm the organisation is eligible and the role meets the skill (RQF 6) and salary rules.
- Choose the licence type (“Worker” for Skilled Worker).
- Appoint key personnel: an Authorising Officer, a Key Contact and at least one Level 1 User.
- Apply online, pay the fee and submit supporting documents within 5 working days.
Two things’ SMEs often miss:
- The licence now lasts 10 years. Renewals were abolished on 6 April 2024, so there is no four-year renewal fee anymore.
- You start A-rated, but UKVI can downgrade you to a B-rating (which stops you issuing new CoS) if a compliance visit finds failings. Sponsor duties are real and ongoing: right-to-work checks, reporting changes through the Sponsorship Management System within set deadlines, record-keeping, and being open to announced or unannounced audits.
Sponsor licence fees (from 8 April 2026)
| Item | Small / charity sponsor | Medium / large sponsor |
|---|---|---|
| Worker licence | £611 | £1,682 |
| Priority processing (10 working days) | +£750 | +£750 |
You qualify for the small/charity rate if you are a registered charity, or if you meet at least two of: annual turnover ≤ £10.2m, balance sheet ≤ £5.1m, or ≤ 50 employees. (The Companies Act size thresholds were uprated for accounting periods from April 2025, so a sponsor near the boundary should confirm which figures the current Home Office guidance applies.)
Certificate of Sponsorship (CoS)
For each worker you assign a CoS through the system. There are two kinds:
- Defined CoS — for a worker applying from outside the UK; each is approved by the Home Office case-by-case (usually about one working day).
- Undefined CoS — for someone already inside the UK who is switching or extending; drawn from your pre-allocated annual allotment.
The CoS fee is £525 (up sharply from £239 on 9 April 2025) and cannot be passed on to the worker.
Immigration Skills Charge (ISC)
The ISC is the biggest employer-only cost and rose +32% on 16 December 2025:
| Period sponsored | Small / charity sponsor | Medium / large sponsor |
|---|---|---|
| First 12 months | £480 | £1,320 |
| Each additional 6 months | £240 | £660 |
| 3-year total | £1,440 | £2,640 |
| 5-year total | £2,400 | £4,400 |
The ISC is waived for dependants, for workers switching from a student or Graduate visa, for some Global Business Mobility transfers, and for listed PhD-level research occupations. Like the CoS, it cannot be recovered from the worker.
Salary thresholds in 2026
Since 22 July 2025 (when the 2025 Immigration White Paper changes took effect), a Skilled Worker must be paid the higher of £41,700 a year and the going rate for their occupation, and the role must sit at RQF Level 6 (degree level) — up from RQF 3, which removed around 180 occupations from new eligibility. The minimum hourly rate is £17.13.
- New-entrant discount: minimum £33,400 and at least 70% of the going rate, for those under 26, recent graduates, or switching from a Student/Graduate visa.
- Transitional (not the standard route): workers first sponsored before 4 April 2024 can use lower thresholds (from £31,300) and RQF 3–5 roles, but these arrangements are set to end on 22 July 2028.
Costs paid by the applicant
The worker (or an employer choosing to cover it) pays the visa fee and the Immigration Health Surcharge:
| Item | Up to 3 years | More than 3 years |
|---|---|---|
| Visa application — from outside the UK | £819 | £1,618 |
| Visa application — from inside the UK | £943 | £1,865 |
| Immigration Health Surcharge | £1,035 per year (£776 for a child), paid upfront for the full visa length | |
Worked example: what one Skilled Worker really costs
A small sponsor hiring one worker from overseas, no dependants, non-discounted role:
| Item | Who pays | 3-year hire | 5-year hire |
|---|---|---|---|
| Sponsor licence (one-off, covers 10 years) | Employer | £611 | £611 |
| Certificate of Sponsorship | Employer | £525 | £525 |
| Immigration Skills Charge | Employer | £1,440 | £2,400 |
| Visa application fee | Applicant | £819 | £1,618 |
| Immigration Health Surcharge | Applicant | £3,105 | £5,175 |
| Total | ≈ £6,500 | ≈ £10,329 |
The mandatory employer-only portion (CoS + ISC, plus the one-off licence) is about £2,000 for a three-year hire. A medium/large sponsor pays more: a £1,682 licence and £2,640/£4,400 in ISC. Recovering the CoS, ISC or licence fee from the worker can cost a sponsor its licence.
What is changing
Two White Paper measures to watch — both still proposed, not yet fully in force as of mid-2026, so check the current Immigration Rules before relying on them:
- Settlement (ILR) qualifying period rising from 5 to 10 years as a new baseline, with an “earned settlement” model that could shorten it for high contributors.
- Adult social-care overseas recruitment has already closed to new entry-clearance applications (from 22 July 2025); in-country workers can extend until 22 July 2028.
The faster route for companies without sponsorship
If you do not hold a licence — or do not want the multi-week setup and ongoing sponsor duties for a single hire — an Employer of Record can employ the worker through its own UK entity and run compliant UK payroll, PAYE and pensions, while you direct the work. It is the quickest compliant way to place talent in the UK without building your own sponsorship function. Talk to our UK team to compare sponsoring in-house against the EOR route for your situation.
Frequently asked questions
How much does it cost an SME to sponsor a UK Skilled Worker?
For a small sponsor hiring one worker from overseas for three years, the total is roughly £6,500: a one-off sponsor licence (£611, valid 10 years), a £525 Certificate of Sponsorship, the Immigration Skills Charge (£1,440 over three years), the visa fee (£819) and the Immigration Health Surcharge (£3,105). The mandatory employer-only part — CoS plus Immigration Skills Charge — is about £1,965 and cannot be recovered from the worker.
How much is a UK sponsor licence in 2026?
A Worker sponsor licence costs £611 for small or charity sponsors and £1,682 for medium or large sponsors (from 8 April 2026), with an optional £750 priority service for a decision in 10 working days. Since April 2024 the licence lasts 10 years and there is no renewal fee.
What is the minimum salary for a UK Skilled Worker visa?
Since 22 July 2025 the worker must be paid at least £41,700 a year or the going rate for the occupation, whichever is higher, with a minimum of £17.13 an hour. A reduced new-entrant threshold of £33,400 (and at least 70% of the going rate) applies to those under 26, recent graduates, or people switching from a Student or Graduate visa.
What is the Immigration Skills Charge and who pays it?
The Immigration Skills Charge is an employer-only fee for sponsoring a worker. After a 32% rise on 16 December 2025 it is £480 per year for small or charity sponsors and £1,320 per year for large sponsors, paid upfront for the sponsored period. It cannot be passed on to the worker, and is waived for dependants, Student/Graduate switchers and certain research roles.
Can I pass visa costs on to the employee?
No for the employer-specific costs. The sponsor licence fee, the £525 Certificate of Sponsorship and the Immigration Skills Charge must be borne by the employer and cannot lawfully be recouped from the worker — doing so risks licence revocation. The visa application fee and the £1,035-per-year Immigration Health Surcharge are legally the applicant’s, although many employers cover them as a benefit.
How long does it take to get a UK sponsor licence?
GOV.UK states most sponsor licence applications are decided in under 8 weeks. A priority service is available for an extra £750, giving a decision within 10 working days, subject to limited daily slots.
Can I hire someone in the UK without a sponsor licence?
Yes — by using an Employer of Record that already has a UK entity and acts as the legal employer, running compliant payroll and PAYE while you direct the work. This avoids the licence-application wait and ongoing sponsor duties, and is often the fastest route for a single hire or a first UK employee.
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