Immigration Skills Charge Explained
The immigration skills charge is one of the significant costs employers face when sponsoring overseas workers. This guide explains how the charge works, how much it costs, who is exempt, and how it interacts with other employer obligations.
- Section
- Employers & Sponsors
- Reading time
- 8 min
- Last checked
- 2 September 2026
- Source
- The published Immigration Rules and GOV.UK guidance, linked throughout this guide.
- Rowan does not
- Look at your own case, tell you which route to choose, or say what the Home Office will decide. This guide shows the published rules and where to read them.
In short
- Small or charitable: £480 for the first 12 months, then £240 per further 6 months.
- Medium or large: £1,320 for the first 12 months, then £660 per further 6 months.
- Paid upfront in one payment, worked out from the dates on the certificate of sponsorship.
- Sponsorship is capped at 5 years, so the most payable for one worker is £2,400 or £6,600.
- Nine occupation codes covering scientists, researchers and higher education teaching are exempt.
- Full and partial refunds are available in set circumstances, normally within 90 days.
The immigration skills charge is paid by employers for each Skilled Worker visa they sponsor. It is charged for the first 12 months and then in 6-month blocks: £480 then £240 for a small or charitable organisation, £1,320 then £660 for a medium or large one. It is paid upfront in one payment. Certain research and teaching jobs are exempt, as are dependants and some switches from a Student visa.
How the Charge 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 pays it, unless one of the exemptions below applies.
The amount is worked out from the start and end dates on the certificate of sponsorship, and the whole charge is paid in one payment when the certificate is assigned. At the medium and large employer rate a 3-year sponsorship costs £3,960 and a 5-year sponsorship costs £6,600. At the small and charitable rate the same two periods cost £1,440 and £2,400.
For a complete breakdown of employer costs, see our cost of hiring overseas workers guide.
Rates and Calculation
There is a charge for the first 12 months, and then a further charge for each additional 6 months:
- Small or charitable sponsors: £480 for the first 12 months, then £240 for each further 6 months.
- Medium and large sponsors: £1,320 for the first 12 months, then £660 for each further 6 months.
Two rules follow from that shape. If the worker will be in the UK for longer than 6 months but less than a year, GOV.UK says the employer pays for at least 12 months, so the minimum is £480 or £1,320. And sponsorship cannot run for more than 5 years, so the most payable for one worker is £2,400 or £6,600.
An organisation is usually a small sponsor if at least 2 of these apply: annual turnover of £15 million or less, total assets of £7.5 million or less, or 50 employees or fewer. Charities pay the small and charitable rate whatever their size. Check the GOV.UK immigration skills charge page for the current definitions.
Exemptions
GOV.UK lists nine occupation codes where no charge is payable. They are research and higher education roles:
- Chemical scientists (2111)
- Biological scientists (2112)
- Biochemists and biomedical scientists (2113)
- Physical scientists (2114)
- Social and humanities scientists (2115)
- Natural and social science professionals not elsewhere classified (2119)
- Research and development managers (2161)
- Other researchers, unspecified discipline (2162)
- Higher education teaching professionals (2311)
There is also no charge in these situations:
- Dependants. Nothing is payable for a sponsored worker's partner or children.
- A switch from a Student visa. If a worker switches from a Student visa to a Skilled Worker or Senior or Specialist Worker visa and then extends their stay on the new visa, GOV.UK says no charge is payable.
- Some Global Business Mobility transfers. A transfer of an EU national or Latvian non-citizen passport holder for no more than 36 months, on a certificate assigned on or after 1 January 2023, is exempt.
- Certificates assigned before 6 April 2017. These pre-date the charge.
- A new certificate that adds no time. If a sponsored worker changes job with the same sponsor and the new certificate does not extend their visa, no further charge is due.
Workers with settled or pre-settled status under the EU Settlement Scheme do not need sponsorship at all, so the charge does not arise.
The Charge and Settlement
The charge only applies to the sponsored visa period. Once a worker is granted settlement, also called indefinite leave to remain, they no longer need sponsorship and no further charge is payable. See settlement on the Skilled Worker route. If settlement is granted before the end of the period the charge was paid for, part of it can be refunded.
Refunds
GOV.UK sets out a full refund where:
- the visa application is refused or withdrawn
- the visa is granted but the worker never starts the job with the sponsor
Part of the charge is refunded where:
- the visa is granted for a shorter period than was paid for
- the worker moves to a different sponsor
- the worker leaves before the end date on the certificate of sponsorship, including where they are granted indefinite leave to remain first
Refunds are normally paid within 90 days of the application being refused, the certificate expiring, or the Home Office being told of the change. Check the GOV.UK immigration skills charge guidance for the refund process.
Impact on Hiring Decisions
The charge is a significant cost that employers factor into hiring decisions. For a large employer sponsoring a worker for 5 years it comes to £6,600 on its own. Add the certificate of sponsorship fee of £525 and a first sponsor licence at £1,682 and the employer's own costs are £8,807. An employer that also covers the worker's visa fee (£1,618 from outside the UK for more than 3 years) and immigration health surcharge (£1,035 a year, so £5,175 over 5 years) is at around £15,600.
For the worker's perspective on costs, see our Skilled Worker visa cost guide.
Questions and answers
What is the immigration skills charge?
The immigration skills charge 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, in one payment, for the whole period on the certificate of sponsorship.
How much is the immigration skills charge in 2026?
It is not a flat yearly amount. A small or charitable organisation pays £480 for the first 12 months and £240 for each further 6 months. A medium or large organisation pays £1,320 for the first 12 months and £660 for each further 6 months. Sponsorship cannot run for more than 5 years, so the most payable for one worker is £2,400 or £6,600.
Is the immigration skills charge refundable?
It can be. GOV.UK says the charge is refunded in full if the visa application is refused or withdrawn, or if it is granted but the worker never starts the job. Part of it is refunded if the worker is granted less time than was paid for, changes to a different sponsor, or leaves before the end date on the certificate. Refunds are normally paid within 90 days of the Home Office being told.
Are any employers exempt from the immigration skills charge?
There is no exemption for a type of employer, but there are exemptions for certain jobs and situations. Nine occupation codes are exempt, covering scientists, researchers, research and development managers and higher education teaching professionals. There is also no charge for a worker's partner or children, for a worker switching from a Student visa inside the UK and then extending on the new visa, or for some short Global Business Mobility transfers.
This guide is general information about published immigration rules. It is not advice about an individual application under s.82 Immigration and Asylum Act 1999, and Rowan is not regulated by the Immigration Advice Authority. Immigration rules change several times a year. For advice on a particular situation, contact an adviser authorised by the Immigration Advice Authority or an immigration solicitor. Always check GOV.UK for the authoritative current rules.