The UK’s immigration system can be complicated, especially for employers looking to sponsor overseas talent. At ESP Solicitors, we specialise in guiding businesses through every stage of the sponsorship process, ensuring compliance and strategic planning.

This guide breaks down the key costs associated with obtaining a UK sponsorship licence and sponsoring an individual worker in 2025.

The sponsorship process

Sponsoring a non-UK national to work in the UK involves three key stages:

1. Applying for a sponsor licence
2. Creating and assigning a Certificate of Sponsorship (CoS)
3. The individual’s visa application

Each stage has its own set of fees, which vary depending on the size and nature of your organisation, the type of licence, and the length of time the individual is being sponsored.

Stage 1: Sponsor licence application

To employ overseas workers, your organisation must first obtain a sponsor licence from UK Visas and Immigration (UKVI). There is an application fee dependent on the size of your organisation and the type of licence:

Application fees:

An organisations is considered small if it meets at least two of the following:

• Annual turnover under £15 million
• Total assets under £7.5 million
• 50 employees or fewer

Processing times:

Generally speaking, UKVI aims to process sponsor licence applications within 8 weeks. If you need a quicker decision on your licence application, you can pay £500 for a priority service with a decision within 10 working days (unless UKVI decides your application is complex).

Stage 2: Certificate of Sponsorship (CoS)

Once your license is approved, you’ll need to assign a Certificate of Sponsorship (CoS) to each individual you intend to sponsor. At this stage you incur a fee for the CoS and you will be required to pay the Immigration Skills Charge unless an exemption applies.

The fee for the Certificate of Sponsorship is £525.

The Immigration Skills Charge is calculated based on the size of your organisation and the length of time the CoS covers. It is not payable for roles under 6 months.

Important: Employers cannot pass these costs (CoS fee, ISC, or sponsor licence fee) onto the sponsored worker. Attempting to do so may result in your sponsor licence being revoked.

Stage 3: Visa application by the individual

Once the CoS is assigned, the individual can apply for their visa. They will incur a visa application fee and the Immigration Health Surcharge (IHS).

These costs vary depending on whether they are applying from outside or inside the UK, whether their role is on the Immigration Salary List (ISL), and the length of time they will be sponsored under the CoS. Individuals applying for a Health and Care Worker (HCW) visa will benefit from a lower application fee and will not be required to pay the IHS.

Fees from 9 April 2025:

• Applying from outside the UK: £769 for up to 3 years; £1,519 for over 3 years 
• Applying from inside the UK: £885 for up to 3 years; £1,751 for over 3 years
• ISL role (inside or outside the UK): £590 for up to 3 years; £1,160 for over 3 years 
• HCW visa (inside or outside the UK): £304 for up to 3 years; £590 for over 3 years 

The IHS is currently £1,035 per year, paid upfront at the time of application (not required for HCW visas).

Covering costs and clawback clauses

Some employers choose to cover these costs as part of a relocation package, but this is optional.

If you do cover the individual’s costs, you may want to include a clawback clause to recover some expenses if the employee leaves before their visa ends. However, care is needed: recovering costs through salary deductions during employment may reduce the salary level that UKVI considers as meeting the threshold for sponsorship. This is a potential compliance issue which could result in the sponsor licence being suspended or revoked.