What is the immigration skills charge?

The immigration skills charge (ISC) is a fee paid by employers for each worker they sponsor on a Skilled Worker visa. The charge is designed to fund skills training for the UK workforce. It must be paid upfront for the entire visa duration.

How much is the immigration skills charge in 2026?

Small or charitable organisations pay £364 per year per sponsored worker. Medium and large organisations pay £1,000 per year per worker. The charge is calculated in 6-month blocks and paid upfront.

Is the immigration skills charge refundable?

The ISC may be partially refundable if the visa is granted for a shorter period than the one you paid for, if the worker leaves the UK or changes sponsor before the visa expires, or if the visa application is refused. Contact the Home Office for refund details.

Are any employers exempt from the immigration skills charge?

Exemptions apply to PhD-level occupations, some roles that switched from the Tier 2 (Intra-Company Transfer) route, and International Sportsperson visa applications. Check the current exemptions on GOV.UK.

Immigration Skills Charge Explained

The immigration skills charge is paid by employers for each Skilled Worker visa they sponsor. Small and charitable organisations pay £364 per year, while medium and large organisations pay £1,000 per year. The charge must be paid upfront for the full visa duration. Some exemptions exist for PhD-level roles and certain other categories.

How the ISC Works

The immigration skills charge was introduced to encourage employers to invest in training the UK workforce rather than relying on overseas recruitment. Every employer that sponsors a worker on the Skilled Worker visa must pay the ISC.

The charge is calculated based on the visa duration and paid upfront. For a 3-year visa at the large employer rate, the total ISC would be £3,000. For a 5-year visa, it would be £5,000.

For a complete breakdown of employer costs, see our cost of hiring overseas workers guide.

Rates and Calculation

The ISC is calculated in 6-month blocks:

Small or charitable sponsors: £182 per 6-month block (£364 per year).
Medium and large sponsors: £500 per 6-month block (£1,000 per year).

Company size is determined by the criteria used by Companies House. Check the GOV.UK ISC page for the current definitions.

Exemptions

The following are exempt from the ISC:

PhD-level occupations: Roles at or above PhD level (SOC codes classified as PhD-level) are exempt.
Some intra-company transfers: Workers switching from the former Tier 2 (ICT) route may be exempt in certain circumstances.
EU Settlement Scheme: Workers with EU settled or pre-settled status do not require sponsorship and therefore the ISC does not apply.

ISC and ILR

The ISC only applies to the sponsored visa period. Once a worker receives ILR, they no longer need sponsorship and no further ISC payments are required. If the worker received ILR before the end of the period covered by the ISC payment, a partial refund may be available.

Refunds

Partial refunds of the ISC may be available when:

The visa application is refused
The visa is granted for a shorter period than paid for
The worker leaves the sponsor or the UK before the visa expires
The worker receives ILR before the visa expires

Refunds are not automatic. The employer must apply for a refund. Check the GOV.UK ISC guidance for the refund process.

Impact on Hiring Decisions

The ISC is a significant cost that employers factor into hiring decisions. For a large employer sponsoring a worker for 5 years, the ISC alone is £5,000. Combined with the CoS fee, sponsor licence, and potentially the worker's visa fees and IHS, the total employer cost can exceed £15,000.

For the worker's perspective on costs, see our Skilled Worker visa cost guide.