The Immigration Skills Charge rises on 16 December 2025. Consequently, we are providing more information on this aspect of UK immigration. Medium and large sponsors will pay £1320 per sponsored worker each year. Small and charitable sponsors will pay £480. These changes come from the Immigration Skills Charge Amendment Regulations 2025. To clarify for applicants, the article by Leena Chouhan below explains more:
What is the Immigration Skills Charge and how it is calculated
The Immigration Skills Charge is a mandatory fee that a sponsor pays when they assign a Certificate of Sponsorship to a Skilled Worker or a Senior or Specialist Worker. Additionally, the charge is linked to the length of employment and is paid upfront when the sponsor issues the certificate. Subsequentl, the charge applies for the first twelve months then in six month blocks after that. For example, a worker sponsored for one year and four months attracts a charge for an 18 month period. A worker sponsored for one year and seven months attracts a charge for 24 months.
Two rates apply
- Medium and large sponsors currently pay £1000 each year which will rise to £1320 on 16 December 2025.
- The rate then becomes £660 for each additional six months.
- Small and charitable sponsors currently pay £364 each year which will rise to £480 on 16 December 2025.
- The rate then becomes £240 for each additional six months.
Therefore, if the employee applies from outside the UK and needs sponsorship for under six months the employer does not pay the charge. However, if the worker applies in the UK the charge applies whatever the length of sponsorship unless an exemption covers the role.
Criteria used to define a small company
A company meets the definition of small if it satisfies two of these conditions:
- Turnover not more than £15 million
- Balance sheet total not more than £7.5 million
- No more than fifty employees
Exemptions from the Immigration Skills Charge
Several occupations do not attract the charge. These include chemical scientists, biological scientists, biochemists and biomedical scientists, physical scientists social and humanities scientists. Also it includes natural and social science professionals not classified elsewhere. As for research and development managers, other researchers, higher education teaching professionals and clergy sports players, they are exempt. Also exempt are sports coaches, instructors and officials.
Equally, the exemption also applies when a worker switches from a student visa to a Skilled Worker or a Senior or Specialist Worker visa. It also applies when they extend their stay with the same employer in the same category.
Exemptions for the Global Business Mobility Senior or Specialist Worker route
Employers do not pay the charge in this category if the worker is an EU national or holds a Latvian non citizen passport and normally works in the EU for the EU business and transfers to the UK for up to three years.
Employees moving to a new job with the same sponsor
In this instance, a sponsor may need to assign a new certificate when an employee changes role into a new SOC code. Second, if there is an overlap with the earlier certificate the charge is not paid twice for the same period. The sponsor only pays a top up for any extension not covered by the first certificate.
The charge cannot be passed to the sponsored worker
Equally important is that employers sometimes share visa costs with employees. However, the Immigration Skills Charge is not recoverable from the worker. Likewise, the same rule applies to the cost of assigning a Certificate of Sponsorship.
Impact on employers of the Immigration Skills Charge
The increase was expected since the charge has remained unchanged since 2017. A rise of 32 percent is significant and the cost will be felt even more in combination with longer qualifying periods for settlement which extend the sponsorship timeline.
Thus, many employers may choose to assign certificates before 16 December and assign them for the maximum permitted period.
Refunds
A sponsor may receive a partial refund if the worker leaves before the sponsored period ends. The sponsor must report the final working day through the Sponsor Management System. Refunds follow unused six month blocks. If a worker is sponsored for two years but leaves after fourteen months the sponsor should receive a refund for one six month period.
For more information
We hope this update is helpful and realise that sometimes navigating UK immigration can be difficult – so please do contact a good immigration lawyer who can help you through the process:
For more information on the Immigration Skills Charge contact: [email protected] or call +442074275972