For UK businesses looking to employ talent from overseas, understanding the Certificate of Sponsorship (CoS) is essential. This article explains more about how the system works, the different types of CoS, timescales, and the CoS cost for employers.
What is a Certificate of Sponsorship?
A Certificate of Sponsorship (CoS) is a digital document issued by a UK-based licensed sponsor to a non-UK national they intend to employ under the UK’s points-based immigration system. It isn’t a paper certificate; instead, it’s an electronic record containing a unique reference number that the individual must use when applying for their visa.
Why a Certificate of Sponsorship matters
A CoS is a critical part of the Skilled Worker and other sponsored immigration routes. Here are the key things employers need to know:
Issued by a licensed sponsor: Only UK employers who are registered with the Home Office as licensed sponsors can issue a CoS. Without a valid licence, you cannot sponsor overseas workers.
Essential for visa applications: The CoS reference number must be included in the visa application submitted by the overseas worker.
Includes key employment details: The certificate outlines important job information such as the job title, salary, start date, and location of employment.
How to issue a Certificate of Sponsorship
To assign a CoS, a business must first hold a Sponsor Licence. Here is the step-by-step process.
- Apply for a sponsor licence
You must apply through the Home Office and select the correct licence type – either Worker or Temporary Worker, depending on the type of roles you intend to sponsor. As part of the application, you must show that you can meet compliance duties, including maintaining accurate records and fulfilling reporting obligations. - Access the Sponsorship Management System (SMS)
Once the licence is approved, you will receive access to the Home Office’s SMS portal. This is where you request and assign Certificates of Sponsorship to eligible migrant workers. - Choose the correct type of CoS
There are two types: Defined and undefined certificate of sponsorship
• Defined CoS: For Skilled Worker visa applicants applying from outside the UK.
• Undefined CoS: For individuals already in the UK, including those switching visa categories, extending their current visa, or applying through routes such as Global Business Mobility. - Assign the CoS through SMS
When assigning a CoS, you must:
• Enter job details, including the job title, salary, start date, and occupation code.
• Pay the certificate of sponsorship fee – usually £525 for most Skilled Worker roles
• Pay the Immigration Skills Charge (ISC), typically £1,000 per year for medium/ large sponsors.
• Ensure the worker applies for their visa within three months
How much does a Certificate of Sponsorship cost?
The CoS fees are as follows:
CoS assignment fee
• £525 for most Skilled Worker roles.
Immigration Skills Charge (ISC)
Employers are required to pay the ISC when assigning a CoS to a migrant worker:
- For roles lasting six months or more if applying from outside the UK
- For any role duration if applying from already inside the UK
The ISC fees depend on the size of the sponsoring organisation:
- Small or charitable sponsors: £364 per year
- Medium or large sponsors: £1,000 per year
For example, sponsoring a worker for three years would cost a large company £3,000 in ISC. These costs are in addition to the standard CoS assignment fee, so employers should factor them into recruitment budgets for overseas hires.
UK Certificate of Sponsorship processing times
Processing times depend on the type of CoS.
Defined CoS
- Must be requested from UKVI before they can be assigned to an individual
- Standard processing is usually approved within 48 hours of submission
- Processing may take longer if the Home Office needs to conduct additional checks
- Once approved, it can be assigned to the individual immediately
Undefined CoS - If you have unused CoS in your annual allocation, these can be assigned immediately
- If you need an additional allocation, approval can take up to 18 weeks
- Employers can use the optional Post-Licence Priority Service, which reduces the processing time to around five working days for a fee of £350 (subject to availability, as it can be tricky to obtain during busy periods).
Applying for a UK Certificate of Sponsorship: Support for employers
The process can feel complex, especially for employers who are new to sponsorship or dealing with time-sensitive recruitment needs. At ESP Solicitors we work closely with HR teams and business leaders to:
- Prepare and submit Sponsor Licence applications
- Manage CoS requests and assignments
- Advise on CoS costs and compliance duties
- Support with immigration audits and Home Office checks
