UK Skilled Worker Visa Fees Big Increase from 4 Oct 2023!

By Sanwar Ali:

As of 4th October 2023, the United Kingdom (UK) government has implemented a significant increase in visa fees associated with visa applications including applications for work visa categories such as the Skilled Worker visa. The Immigration Health Surcharge (IHS) Surcharge has not changed as yet, and will be increasing some time later this year from £624 to £1,035 per person per year for most applicants. Given the complexity and variety of visa types, understanding the cost implications for both overseas workers and sponsor licence employers may not be that easy to do. This article provides an analysis of the various costs associated with the UK's Skilled Worker visa, including fees for dependents and sponsor licence costs. It provides details of the costs for small and large companies sponsoring overseas workers.

Overview of UK Visas and Immigration Fees

The UK visas and immigration Government fee structure is perhaps overly complicated. It has been suggested that the system was designed in an attempt to justify unfair charges to immigrants and the sponsoring employer. The most significant fees are typically the Immigration Skills Charge (ISC) and the Immigration Health Surcharge (IHS).  Immigrants or their employers are in effect paying twice for health care. Funding for the NHS comes from taxes and from the Immigration Health Surcharge.

Primary Applicant Fees

The primary applicant, in this case, the Skilled Worker, is subject to several fees. To be able to sponsor the applicant and sponsor other overseas workers in future, the employer needs to apply for a sponsor licence and pay the relevant application fee to the Home Office. This fee is £1,476 for a large organization or £536 for a smaller organization or a charity. This is paid for any number of employees covering a period of four years.

Moreover, assigning each Certificate of Sponsorship (CoS) requires payment of an increased fee of £239 (previously £199). In most cases, the employer must also pay the Immigration Skills Charge (ISC). The total cost to assign a 3-year CoS certificate to employ a sponsored worker remains the same at £1,331 for a smaller sponsor and £3,239 for a large sponsor.

Skilled Worker visa application fees have been updated, and in some cases is £719 per applicant for a Skilled Worker visa for up to three years. The actual visa fee for a Skilled Worker visa varies quite a lot depending on the circumstances. It is important to remember that each dependent family member also has to pay the same fees. In addition, there is also the Immigration Health Surcharge to pay. For adults, it is £624 per year for visa, and for those under 18, it is £470 per year.

Dependant Fees

If a Skilled Worker visa holder wants to bring their partner or children to the UK, they need to apply separately. The costs for dependents in a skilled worker visa application are the same as for the main applicant. The visa costs are now £719 in many cases; this varies depending on the type of application. The Immigration Health Surcharge also has to be paid, at £624 per year (£470 per year for under 18). The dependant visas are granted for the same period of time as the main applicant.

Breakdown of Skilled Worker Visa Costs for Different Company Sizes

The size of the sponsoring company significantly impacts the cost of sponsoring a Skilled Worker. The following sections provide a detailed breakdown of the costs for small and large companies.

Small Companies

Small companies or charitable organizations qualify under the 'small company regime' stipulated in the Companies Act 2006. These organizations pay lower ISC fees of £364 per year for each CoS and a lower application fee of £536 when applying for a sponsor license.

Large Companies

By contrast, medium or large organizations have to pay £1,000 per year for each CoS for the ISC. They must also pay £1,476 for the initial sponsor license application. Sponsor employers must pay the ISC fee when they assign a CoS certificate to a migrant worker.

Breakdown of Skilled Worker Visa Costs for Different Visa Types

The UK government offers a variety of work visas, each with its own set of fees and requirements. The following sections provide a detailed breakdown of the costs for different visa types, such as the Health and Care visa and the Shortage Occupation visa.

Health and Care Visa

The Health and Care visa main applicants and dependants are exempt from the IHS fees.

Shortage Occupation Visa

ISC fees depend on the duration of the CoS, the migrant worker, and the size of the sponsor employer's organization. Sponsor organizations that qualify under the 'small company regime' in the Companies Act 2006 and charitable organizations pay lower ISC fees of £364 per year for each CoS.

Recovering the Costs of Skilled Worker Visa - Clawback Clauses in Employment Contracts

Considering the costs of employing a Skilled Worker, it's understandable that employers want to recover the costs in case an employee leaves the job early. Clawback clauses in Skilled Worker employment contracts can help achieve that goal.

In certain circumstances, the Immigration Skills Charge and Immigration Health Surcharge fees can also be recovered from the Government. The UK Government refunds these fees if the visa is refused or the work visa holder leaves before the full duration of the visa. There are other situations where an applicant can recover fees from the Home Office, such as when a visa application is withdrawn before a decision is made.

Examples of Total Fees that will need to be paid.

We also have a more detailed UK visa guide.

Sponsor Licence Fees:

This is a fee payable by the employer and is to sponsor multiple overseas workers usually for a period of four years.

• For Small Companies and Charities: £536
• For Larger Companies: £1,476

3-Year Visa Costs

Note: Certificate of Sponsorship (CoS) and Immigration Skills Charge (ISC) are for main applicants only.

For Small Companies and Charities:

Health and Care Visa Applicants

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £284
• Immigration Skills Charge (ISC): £1,092 (£364 x 3 years, Main Applicant only)
• Immigration Health Surcharge (IHS): Exempt
  • Total Cost for Main Applicant: £1,615
  • Total Cost for Adult Dependent: £284
  • Total Cost for Minor Dependent: £284

Skilled Worker Non-Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £719
• Immigration Skills Charge (ISC): £1,092 (£364 x 3 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £1,872 (£624 x 3 years)
• Immigration Health Surcharge (IHS) for Minors: £1,410 (£470 x 3 years)
  • Total Cost for Main Applicant: £3,922
  • Total Cost for Adult Dependent: £2,700
  • Total Cost for Minor Dependent: £2,238

Skilled Worker Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £551
• Immigration Skills Charge (ISC): £1,092 (£364 x 3 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £1,872 (£624 x 3 years)
• Immigration Health Surcharge (IHS) for Minors: £1,410 (£470 x 3 years)
  • Total Cost for Main Applicant: £3,754
  • Total Cost for Adult Dependent: £2,532
  • Total Cost for Minor Dependent: £2,070

5-Year Visa Costs

Note: Certificate of Sponsorship (CoS) and Immigration Skills Charge (ISC) are for main applicants only.

For Small Companies and Charities:

Health and Care Visa Applicants

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £551
• Immigration Skills Charge (ISC): £1,820 (£364 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS): Exempt
  • Total Cost for Main Applicant: £2,610
  • Total Cost for Adult Dependent: £551
  • Total Cost for Minor Dependent: £551

Skilled Worker Non-Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £1,500
• Immigration Skills Charge (ISC): £1,820 (£364 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £3,120 (£624 x 5 years)
• Immigration Health Surcharge (IHS) for Minors: £2,350 (£470 x 5 years)
  • Total Cost for Main Applicant: £6,679
  • Total Cost for Adult Dependent: £4,620
  • Total Cost for Minor Dependent: £2,901

Skilled Worker Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £1,084
• Immigration Skills Charge (ISC): £1,820 (£364 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £3,120 (£624 x 5 years)
• Immigration Health Surcharge (IHS) for Minors: £2,350 (£470 x 5 years)
  • Total Cost for Main Applicant: £6,263
  • Total Cost for Adult Dependent: £4,204
  • Total Cost for Minor Dependent: £2,485

5-Year Visa Costs for Larger Companies

Note: Certificate of Sponsorship (CoS) and Immigration Skills Charge (ISC) are for main applicants only.

Sponsor Licence Fees

• Larger Companies: £1,476

Health and Care Visa Applicants

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £551
• Immigration Skills Charge (ISC): £5,000 (£1,000 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS): Exempt
  • Total Cost for Main Applicant: £5,790
  • Total Cost for Adult Dependent: £551
  • Total Cost for Minor Dependent: £551

Skilled Worker Non-Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £1,500
• Immigration Skills Charge (ISC): £5,000 (£1,000 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £3,120 (£624 x 5 years)
• Immigration Health Surcharge (IHS) for Minors: £2,350 (£470 x 5 years)
  • Total Cost for Main Applicant: £9,859
  • Total Cost for Adult Dependent: £4,620
  • Total Cost for Minor Dependent: £2,901

Skilled Worker Shortage

• Certificate of Sponsorship (CoS): £239 (Main Applicant only)
• Visa Application Fee: £1,084
• Immigration Skills Charge (ISC): £5,000 (£1,000 x 5 years, Main Applicant only)
• Immigration Health Surcharge (IHS) for Adults: £3,120 (£624 x 5 years)
• Immigration Health Surcharge (IHS) for Minors: £2,350 (£470 x 5 years)
  • Total Cost for Main Applicant: £9,443
  • Total Cost for Adult Dependent: £4,204
  • Total Cost for Minor Dependent: £2,485

Conclusion

Understanding the various costs associated with the UK's Skilled Worker visa is crucial for both overseas workers and sponsoring employers. This analysis provides an overview of these costs, including fees for dependents and sponsor licence costs. It also provides common examples of the costs for small and large companies sponsoring overseas workers. With these insights, employers and potential migrants can make informed decisions about the financial implications of the Skilled Worker visa scheme. We also have a full analysis of the UK visa Government fees and a short video about the visa fee changes.

How Workpermit.com Can Help with Sponsor Licences

If you need help with employing Skilled Workers and applying for a Sponsor Licence, including complying with your Sponsor Licence obligations, HR responsibilities, etc workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)