Immigration Skills Charge Guide for UK Sponsors

1. Introduction

For UK businesses recruiting international talent, managing sponsorship costs is a vital part of the hiring process. Among these, the Immigration Skills Charge (ISC) stands out as a mandatory fee that applies to many sponsored work visa applications.

Introduced to encourage investment in the domestic workforce, the ISC is used to fund training and skill development initiatives across the UK. It applies only to employers sponsoring workers on the Skilled Worker route (including Health and Care) and the Global Business Mobility Senior or Specialist Worker route. No other route attracts it.

This guide offers employers a clear overview of the Immigration Skills Charge: when it applies, who is exempt, how much it costs, and what you need to know to remain compliant.

2. What is the Immigration Skills Charge (ISC)?

The Immigration Skills Charge (ISC) is a fee levied on UK employers who sponsor overseas workers. It came into effect on 6 April 2017 under the Immigration Skills Charge Regulations 2017 (as amended).

Essentially, it's a charge you, as the sponsoring employer, must pay when you assign a Certificate of Sponsorship (CoS) to hire someone under the following key work visa routes:

✔ Skilled Worker visa: 

This route allows UK employers to recruit individuals from overseas for eligible skilled roles.

✔ Global Business Mobility – Senior or Specialist Worker visa: 

This route (which replaced the Intra-Company Transfer or ICT route) enables multinational companies to transfer established senior managers or specialist employees to a UK branch.

Think of it as a contribution towards developing the UK's resident workforce each time you sponsor an international worker under these specific categories.

3. When Does the Immigration Skills Charge Apply?

The ISC becomes payable when an employer assigns a Certificate of Sponsorship (CoS) to a foreign worker under the relevant visa routes. The charge applies in the following situations:

● When sponsoring a worker applying from outside the UK for a role lasting six months or more.
 

● When sponsoring a worker applying from within the UK, regardless of the duration of employment.
 

● When extending a worker’s visa and assigning a new CoS that increases the period of sponsorship.
 

The ISC is charged per sponsored worker, based on the length of employment and the size of the sponsoring organisation.

4. Immigration Skills Charge Exemptions: Who Doesn’t Pay?

Not all sponsorship cases require payment of the ISC. Exemptions apply under specific conditions, including:

a. Occupation Code Exemptions

Sponsors do not pay the ISC when assigning CoS to workers in the following roles:

● 2111: Chemical scientists

● 2112: Biological scientists

● 2113: Biochemists and biomedical scientists

● 2114: Physical scientists

● 2115: Social and humanities scientists

● 2119: Natural and social science professionals (n.e.c.)

● 2161: Research and development managers

● 2162: Other researchers, unspecified discipline

● 2311: Higher education teaching professionals

Only these nine codes are exempt. Older lists also exempted clergy (2444), sports players (3441) and sports coaches (3442), but those roles are not exempt, so you pay the ISC for them.

b. Switching from Study Routes

No ISC is due if the worker holds current permission as a Student, Child Student, Tier 4 (General) or Tier 4 (Child) student, or Short-term Student (English Language) on the day you assign the CoS. The exemption continues if you later assign a new CoS for them to stay in the same role. It does not cover a worker on the Graduate route, a worker whose student permission has already expired, or a student's partner or child, so you pay the full ISC for them.

c. Global Business Mobility – Senior or Specialist Worker (EU Nationals)

ISC does not apply if all of the following are true. The worker:

● Was assigned a CoS on or after 1 January 2023
 

● Is an EU national or holds a Latvian non-citizen passport (nationals of Iceland, Liechtenstein, Norway and Switzerland do not qualify)
 

● Has been assigned to the UK by a business established in the EU that is part of the same sponsor group as you
 

● Has worked for the sponsor group for at least one year before you assigned the CoS

● Has an assignment end date on the CoS no more than 36 months after its start date
 

d. CoS Assigned Before 6 April 2017

If a worker was assigned a CoS under Tier 2 (General) or Tier 2 (Intra-Company Transfer) Long-term Staff before 6 April 2017, that CoS led to a grant, the worker took up that role, and they have held Skilled Worker or Senior or Specialist Worker permission (or the earlier Tier 2 equivalent) without a break since, they remain exempt.

e. Short-Term Entry Clearance (Under 6 Months)

The ISC is not payable for workers applying from outside the UK for roles lasting less than six months.

f. No Extension of Leave

If a new CoS is issued that does not extend the worker’s existing leave (e.g., changing job roles within the same sponsor without increasing visa duration), the ISC is not payable.

g. Dependants

The Immigration Skills Charge does not apply to the worker’s dependants, such as their spouse, partner, or children.

5. How Much is the Immigration Skills Charge?

The Immigration Skills Charge is based on a two-tier structure, determined by the size and charitable status of the sponsoring organisation. Charges apply per sponsored worker and are calculated based on the length of sponsorship stated on the Certificate of Sponsorship (CoS).

Fee Structure:

These rates apply where the CoS was assigned on or after 16 December 2025. For a CoS assigned before that date, the rates were £1,000 and £500 for a medium or large sponsor, and £364 and £182 for a small or charitable sponsor.

Sponsorship must be paid for a minimum of 12 months, even if the worker will be in the UK for just over six months. The maximum period a worker can be sponsored is 5 years, meaning:

● Medium or Large Sponsor: Maximum ISC = £6,600

 

● Small or Charitable Sponsor: Maximum ISC = £2,400

 

Cumulative ISC Costs by Sponsorship Duration:

The full ISC must be paid at the time of CoS assignment and cannot be paid in instalments.

For every other cost of sponsorship, including the licence fee, the Certificate of Sponsorship fee and the visa fees your worker pays, see our guide to visa fees and sponsorship costs.

Check out our Costs of Sponsoring a Worker in the UK 2025: Employer & Employee Fees Explained blog for more info on other costs >>

6. Determining Your Organisation Size: Small/Charitable vs. Medium/Large

The amount you pay depends on whether you are classified as a small or charitable sponsor or a medium or large sponsor.

Small Sponsors (regulation 2 of the Immigration Skills Charge Regulations 2017):

You are a small or charitable sponsor if any one of the following is true. It is one of three, not two of three:

● You are a company subject to the small companies regime under section 381 of the Companies Act 2006. A company is in that regime if at least two of these apply: annual turnover of £15 million or less, a balance sheet total of £7.5 million or less, and 50 employees or fewer.
 

● You are a charity (see Charitable Sponsors below).
 

● You employ no more than 50 employees.
 

Charitable Sponsors:

You qualify as a charitable sponsor if you are:

● A registered charity in England, Wales, Scotland, or Northern Ireland
 

● An excepted or exempt charity
 

● An ecclesiastical corporation established for charitable purposes
 

Important Note: Company size thresholds can occasionally be updated. We always recommend verifying the current criteria directly on the GOV.UK website or consulting with an immigration specialist like WorkPermitCloud to ensure you're applying at the correct rate.

You must tell the Home Office through the SMS within 20 working days if your organisation's size or type changes, so that you pay the correct rate on each CoS.

7. How and When to Pay the Immigration Skills Charge

The ISC must be paid at the time of assigning a Certificate of Sponsorship (CoS) through the Sponsor Management System (SMS).

➤ Timing: Payment must be made before the sponsored worker’s visa application is processed.
 

➤ Method: The full charge must be paid in one single transaction via the SMS platform.
 

If payment is not made at the point of CoS assignment, the certificate will be considered invalid, delaying or jeopardising the worker’s visa outcome.

8. Consequences of Incorrect or Non-Payment

Failure to pay the ISC correctly can result in serious delays and even visa refusals. If UKVI identifies an underpayment or missing payment:

● The Certificate of Sponsorship is invalid until the full ISC is paid.
 

● The Home Office emails a top-up payment link to your Key Contact.
 

● The link is valid for 72 hours. If it expires unpaid, one further link is sent, also valid for 72 hours.
 

● If payment is not made in time, the visa application will be refused.
 

To avoid disruptions to recruitment plans, it is essential to verify your sponsor size, calculate the correct fee, and ensure full payment is made at the point of assigning each CoS.

9. Can the ISC Be Passed on to the Worker?

No. Employers must not pass the Immigration Skills Charge (ISC) to the sponsored worker. UKVI strictly prohibits this, as the charge is intended to encourage employers to invest in training the domestic workforce—not to transfer costs to overseas staff.

Attempting to recover the ISC from the employee, whether directly or indirectly, is a breach of sponsorship duties. If the Home Office finds that you have passed on or tried to recoup any of the ISC, it will normally revoke your sponsor licence.

Employers should treat the ISC as part of the cost of doing business when hiring internationally and ensure all internal policies comply with this requirement.

10. Immigration Skills Charge Refunds: Can You Get Your Money Back?

In certain circumstances, employers may be eligible for a full or partial refund of the Immigration Skills Charge. Refunds are paid to the original payment method you used. Most are triggered by something you report through the Sponsorship Management System (SMS), such as a worker not starting or leaving early.

Full Refunds

You will receive a full refund if:

● The worker’s visa application is refused or withdrawn
 

● The worker is granted the visa but does not start employment

● The CoS expires before it is used in a valid application

● You withdraw the CoS before it is used in any application

Partial Refunds

Partial refunds may apply if:

● The worker is granted less time on their visa than the sponsorship period
 

● The worker voluntarily changes to a different sponsor after starting (not under TUPE)
 

● The worker leaves the role early, before the CoS end date
 

● You paid the large sponsor rate but had already notified UKVI of your change to small or charitable status
 

In the first three cases, the Home Office always keeps the first 12 months of the charge and refunds only the unused 6-month periods after that.

No Refunds

Refunds will not be issued if:

● The worker changes roles within the same organisation, even with a new CoS
 

● The worker’s permission is cancelled, unless it is cancelled because they did not start the job or left it early
 

● The worker switches to another immigration route but stays in the same job

● The worker moves to another sponsor under TUPE

● Your licence becomes dormant or is revoked

Timeline and Process

Most refunds are processed within 90 days of one of the following:

● Notification through the SMS that the worker did not start work or has left early
 

● The date you told the Home Office you had withdrawn the CoS

● Expiry of an unused CoS
 

● Date of visa refusal or withdrawal
 

● Notification that you’ve become a small or charitable sponsor
 

If the worker applies for an administrative review after a visa refusal, the refund will be delayed until the review process is complete.

If your refund has not been received within 90 days of the relevant event, contact UKVI directly.

11. ISC Implications for Job Changes Within Your Organisation

If a sponsored worker changes jobs within the same organisation, and the new role falls under a different occupation code, you must assign a new Certificate of Sponsorship (CoS). This requires a new visa application under the updated role.

In such cases, the ISC must be paid again only for any additional time granted on the new visa, beyond what was previously covered.

Example:

A worker has a visa from 1 January 2021 to 1 January 2023, and you paid the ISC for two years. They change roles, and you assign a new CoS extending their visa to 1 July 2023.

You must pay the ISC only for the additional 6 months (January to July 2023), not for the full period again.

If the new CoS does not extend their total time in the UK, no further ISC payment is required.

12. How Can WorkPermitCloud Help?

At WorkPermitCloud, we support UK employers with every aspect of sponsor compliance, including the complexities of the Immigration Skills Charge. From determining the correct ISC fee to guiding CoS assignments, exemptions, and refunds, we offer tailored advice that reduces risk and saves time. Our expert team also assists with sponsor licence applications and long-term immigration planning.

Contact us today for expert guidance on your sponsorship needs.

13. Conclusion

Understanding and managing the Immigration Skills Charge is vital for any UK employer sponsoring overseas workers. Compliance not only avoids costly delays but also safeguards your sponsor licence status. With various exemptions, refund rules, and calculation methods, getting expert advice can make all the difference.

For tailored sponsorship support, including ISC management and compliance planning, get in touch with WorkPermitCloud today.

14. Glossary