How much does it cost to sponsor a worker?
With all of the changes brought about to the immigration landscape over the past few months a lot of employers are finding themselves looking at sponsorship as an option to secure the talent that they need. Aside from the complications to do with the rules and the process there is one other burden which employers need to know – the cost.
This short blog sets out the main costs associated with sponsoring a migrant worker. It is important to note that the figures below are correct at the time of writing, and the Home Office regularly revise their fees (usually in April each year). This blog also does not cover the minimum salary that needs to be paid to migrant workers which will vary depending on the job role and the worker. I will aim to cover this in a later blog, but for now, the costs.
The costs paid by the sponsor
The cost of getting a licence: £1476/536
The first step for many employers will be to obtain a licence. If you are a ‘small employer’ then the fee you pay is £536 every four years. Small employers are defined by the home office as having at least two of the following characteristics: -
they have fewer than 50 employees
they have an annual turnover of less than £10.2 million
they have assets of less than £5.1 million
You must initially pay for the licence as part of your application. The application process takes around 8 weeks so if you need to sponsor urgently you will need to pay an additional £500 to prioritise your application and get a decision within 2 weeks. Licences are valid for 4 years and the fee needs to be paid for each renewal. If you are unsure if you are a large or small sponsor speak to a specialist immigration lawyer who can advise on the best course of action to prevent Home Office sanction.
Assigning the certificate of sponsorship: £199
Every time that you give a certificate to a skilled worker you will need to pay the Home Office £199.
Immigration Skills Charge: £364/1000 per year per skilled worker
In some most employers will be required to pay the Skills Charge. The amount that you pay will depend on whether you are a large or a small sponsor. There are some job role which are exempt from the ISC, such as many PhD level scientists and higher education teachers. There are also some migrants who are exempt form the ISC if they were assigned a CoS from before 6 April 2017 and care needs to be taken when assigning a CoS to ensure that you pay the correct amount. Getting this wrong can lead to the Home Office taking action against you, or rejecting a visa application adding further delay and cost to the process.
The costs paid by the worker and their family
On top of the fees that the employer pays it is important to factor in the costs for the worker. whether or not you are meeting the costs for the worker and their family or if you are providing an interest free loan, it is important to remember that the costs that they are paying up front are a significant consideration when it comes to making a decision to take up a position.
Visa application fee: £232-1220 per migrant
The visa fees vary quite widely depending on the length of time that you are sponsoring them for as well as the type of role. For most positions which are not on the shortage occupation list, if you were sponsoring them for less than three years the fee £610 per person. This fee is paid by the worker and each of their family members.
Immigration Health Surcharge (IHS): £624 per person per year
The worker and each of family members needs to pay the Immigration Health surcharge of £624 per year for each adult and £470 per year for each child under the age of 18. This must be paid upfront at the time that they make the application
Optional Priority fees
Immigration applications can be subject to delay with the Home Office taking around 6 weeks to process an application. Fortunately applicants can pay to get their application to the front of the queue however with fees of up to £956 per application for a next day service, it is an expensive option.
Fees for settlement
It is important not to overlook that most migrant workers will be thinking about their future in the UK and that involves settlement. this is the process at the end of their 5 year visa period where they can obtain indefinite leave to remain for them and their family and can stay in the UK without restrictions. This process currently costs £2389 per person.
Example:
You offer to sponsor a worker for 3 years, and they want to come to the UK with their partner and child. Assuming that there are no discounts available on the visa and that you are a small sponsor, what are the costs?
When an employer assigns a certificate of sponsorship they must pay: -
£199 to assign the certificate
£1092 Immigration Skills Charge
TOTAL £1291
When the worker uses the Certificate to make an application they pay:-
£1830 in Visa fees (£610 each)
£3744 IHS for the two adults
£1410 IHS for their child
TOTAL £6984
With costs totalling over £8k for one worker and their family to live and work in the UK for only three years employers and employees are cautious about making applications. Having specialised in Immigration for over five years and worked with employees and employees across the UK I understand the concerns and can guide you through the process to ensure that you get the worker that you need as efficiently as possible. You can email me at blair.melville@teneulegal.com or call on 07877347695 to discuss what you need to take things forward.
A full list of the fees published by the Home Office can be found here
