How much does a sponsor licence cost for a small business?

A small or charitable sponsor pays £536 for a Worker sponsor licence. This covers the licence for up to 4 years. Medium and large sponsors pay £1,476. In addition to the licence fee, there are per-worker costs including the Certificate of Sponsorship fee and the Immigration Skills Charge.

What is the Immigration Skills Charge?

The Immigration Skills Charge (ISC) is a fee paid by the employer for each sponsored worker. Small or charitable sponsors pay £364 per year. Medium and large sponsors pay £1,000 per year. The ISC is payable upfront for the full duration of the visa and cannot be reclaimed from the worker.

Can I pass sponsorship costs to the worker?

You cannot pass the Immigration Skills Charge to the worker — this must be paid by the employer. The visa application fee and Immigration Health Surcharge can be paid by either party, depending on the agreement. Many employers choose to cover all costs as part of the employment package.

Is the sponsor licence fee refundable if my application is refused?

No. The sponsor licence application fee is non-refundable, even if the application is refused. This is why it is important to ensure you meet all the requirements before applying.

Sponsor Licence Cost: Full Fee Breakdown 2026

The total cost of sponsoring a worker in the UK includes the licence fee, Certificate of Sponsorship fee, Immigration Skills Charge, and potentially priority processing fees. This guide breaks down every cost for 2026.

Sponsor Licence Application Fee

The first cost is the licence itself. The fee depends on the size of your organisation:

Small or charitable sponsor: £536
Medium or large sponsor: £1,476

You are classified as a small sponsor if you meet at least two of: annual turnover not more than £10.2 million, balance sheet total not more than £5.1 million, or not more than 50 employees. Charities always pay the small sponsor rate.

The licence is valid for up to 4 years. When it expires, you must apply to renew your licence, which involves another fee.

Full fee details are on the GOV.UK sponsor licence page.

Certificate of Sponsorship Fee

Each time you sponsor a worker, you must assign a Certificate of Sponsorship (CoS). The fee is £525 per CoS. This applies to both new hires and extensions.

The CoS fee is payable by the employer when the CoS is assigned through the Sponsor Management System.

Immigration Skills Charge

The Immigration Skills Charge (ISC) is an annual levy paid by the employer for each sponsored worker:

Small or charitable sponsor: £364 per year per worker
Medium or large sponsor: £1,000 per year per worker

The ISC is payable upfront for the full duration of the visa. For example, if you sponsor a worker for a 3-year Skilled Worker visa and you are a small sponsor, the ISC would be £364 x 3 = £1,092.

The ISC cannot be passed to the worker. This is explicitly prohibited by the Immigration Rules. If the Home Office discovers that an employer has recovered the ISC from a worker (through payroll deductions or any other means), the licence may be revoked.

Some exemptions apply. Workers switching from a Student visa or the Graduate route may be exempt from the ISC in certain circumstances. PhD-level roles may also be exempt. Check the current exemptions on GOV.UK.

Priority Processing Fees

If you need faster processing:

Priority sponsor licence processing: £500 (aims for decision within 10 working days)
Priority CoS allocation: Not separately chargeable, but included in the standard process

For the worker's visa application, separate priority services are available — see the processing time guide.

Worker-Side Costs

While these are formally the worker's responsibility, many employers choose to cover them:

Visa application fee: £719 to £1,420 depending on duration and whether the role is on the Immigration Salary List
Immigration Health Surcharge: £1,035 per year (per worker and each dependant)
English language test: Approximately £150 to £200
Biometrics: Included in the visa application process

Unlike the ISC, these costs can be paid by either the employer or the worker, depending on the employment agreement. See the full Skilled Worker cost breakdown.

Total Cost Examples

Here are two examples showing the total employer cost of sponsoring one worker for a 3-year visa:

Small Sponsor

Licence fee (amortised over 4 years, 1 worker): ~£134/year
CoS fee: £525
ISC (3 years): £1,092
Total employer cost: approximately £1,751

Medium/Large Sponsor

Licence fee (amortised over 4 years, 1 worker): ~£369/year
CoS fee: £525
ISC (3 years): £3,000
Total employer cost: approximately £3,894

These figures do not include any worker-side costs the employer may choose to cover. If the employer also pays the visa fee (£1,420) and IHS (£3,105 for 3 years), the total can exceed £8,000 per worker.

Budgeting Tips

Factor in the ISC when calculating the true cost of hiring an overseas worker
If you plan to sponsor multiple workers, the licence fee is a one-off cost that becomes more economical per worker
Consider whether your business qualifies as a small sponsor to benefit from reduced fees
Budget for licence renewal every 4 years
Track the latest fee regulations on GOV.UK as fees can change

Next Steps

Calculate the total cost for your specific situation, including both employer-mandatory costs and any worker costs you plan to cover. If cost is a concern, see our guide for small business sponsors.

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