The Immigration Skills Charge went up 32% on 16 December 2025. A medium or large sponsor assigning a five-year Certificate of Sponsorship now pays £6,600 upfront for a single worker, up from £5,000. Small sponsors and charities pay £2,400, up from £1,820.
If you haven't refreshed the budget for sponsoring a Skilled Worker since late 2024, it is out of date.
This guide covers what the Immigration Skills Charge is, the current rates, which roles and routes are exempt, when refunds are paid, and how the December 2025 increase changes the total cost of sponsoring a worker.
What is the Immigration Skills Charge?
The Immigration Skills Charge is a levy that UK employers pay when they assign a Certificate of Sponsorship to a worker on the Skilled Worker route or the Senior or Specialist Worker route under Global Business Mobility.
It was introduced on 6 April 2017 under the Immigration Skills Charge Regulations 2017. The stated purpose: to incentivise UK employers to train resident workers and reduce reliance on overseas labour. Revenue from the charge feeds into the consolidated fund and funds skills programmes.
Who pays it? The sponsoring employer. The sponsor cannot recover the charge from the worker, either directly or through salary deductions. Doing so is a sponsor licence compliance breach and can lead to revocation.
When is it paid? Upfront, when the sponsor assigns the Certificate of Sponsorship through the Sponsor Management System, the sponsor pays the full amount for the intended sponsorship period in a single transaction.
Why this matters for budgeting. The Immigration Skills Charge is the single largest sponsorship cost for most employers, exceeding the Certificate of Sponsorship fee and visa application fees. A five-year Skilled Worker assignment incurs a £6,600 Immigration Skills Charge for a large sponsor before any other fees are added.
How much is the Immigration Skills Charge in 2026?
The rates that apply from 16 December 2025 onwards:
| Sponsor type | First 12 months | Each additional 6 months |
|---|---|---|
| Medium or large sponsor | £1,320 | £660 |
| Small sponsor or registered charity | £480 | £240 |
The Home Office calculates the charge based on the length of sponsorship, not the length of the worker's actual stay. If a sponsor issues a Certificate of Sponsorship for three years, the sponsor pays the Immigration Skills Charge for three years upfront.
Immigration Skills Charge fee by sponsorship length
| Sponsorship length | Medium or large sponsor | Small sponsor or charity |
|---|---|---|
| 1 year | £1,320 | £480 |
| 2 years | £2,640 | £960 |
| 3 years | £3,960 | £1,440 |
| 4 years | £5,280 | £1,920 |
| 5 years | £6,600 | £2,400 |
The December 2025 Immigration Skills Charge increase
The rates above replaced the previous structure of £1,000 per year for medium and large sponsors and £364 per year for small sponsors and charities. The increase came into force on 16 December 2025 under the Immigration Skills Charge (Amendment) Regulations 2025.
The change works out to a 32% uplift across both bands. It is the first revision to Immigration Skills Charge rates since the charge was introduced in April 2017.
What this means in practice: sponsoring one worker for five years now costs large employers £1,600 more and small employers £580 more than before 16 December 2025. For a sponsor assigning 10 five-year Certificates of Sponsorship per year, that is an additional £16,000 in cost.
Who counts as a small or charitable sponsor?
The lower rate applies to organisations meeting the small company definition in section 382 of the Companies Act 2006, or to registered charities.
An organisation qualifies as a small sponsor if it meets at least two of these three thresholds:
- Annual turnover not more than £10.2 million
- Balance sheet total not more than £5.1 million
- Average number of employees not more than 50
The test uses the most recent financial year. A growing company that crosses two of the three thresholds in one year remains small until it exceeds the criteria in two consecutive financial years.
Registered charities qualify for the lower rate regardless of turnover or employee count, provided they are registered with the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator, or the Charity Commission for Northern Ireland.
Here's where most growing companies get this wrong: the sponsor locks in small-sponsor status when it assigns the Certificate of Sponsorship. A company that was small when it was assigned a five-year CoS does not retroactively owe more if it grows during that sponsorship.
When does the Immigration Skills Charge apply?
The charge applies to Certificates of Sponsorship assigned on these routes:
- Skilled Worker visa, where the worker is sponsored for any length of employment
- Senior or Specialist Worker visa under Global Business Mobility, where the worker is sponsored to work in the UK for more than three years (or assigned on or before 1 January 2023 for any duration)
It does not apply to other Global Business Mobility routes (Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker). It does not apply to the Health and Care Worker visa, the Scale-Up route, the Temporary Worker categories, or any non-sponsored route.
For out-of-country Skilled Worker applications, the charge applies when the assignment is for six months or more. For in-country applications (including switching from another route or extending an assignment), it applies to any assignment length.
Immigration Skills chargecharge exemptions
Even where the charge would otherwise apply, several specific situations are exempt.
Exempt SOC occupation codes
Workers sponsored under these Standard Occupational Classification 2020 codes are exempt from the Immigration Skills Charge entirely:
- 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 not elsewhere classified
- 2161: Research and development managers
- 2162: Other researchers, unspecified discipline
- 2311: Higher education teaching professionals
- 2463: Clergy
- 3431: Sports players
- 3432: Sports coaches, instructors and officials
The sponsor sets the SOC code when assigning the role in the Sponsor Management System. A research role that meets one of the exempt codes carries no Immigration Skills Charge for the full duration of sponsorship, regardless of subsequent restructuring.
Other exempt circumstances
The charge is also not payable when:
- The worker is being sponsored on the Health and Care Worker visa
- The Certificate of Sponsorship was assigned before 6 April 2017
- A student in the UK on a Student visa is switching to the Skilled Worker route with the same sponsor (the initial assignment is exempt, though the Home Office charges for extensions)
- A worker is sponsored as a Senior or Specialist Worker under Global Business Mobility for a period of less than three years that begins on or after 1 January 2023
- The sponsorship duration is less than six months, and the worker applies from outside the UK
Immigration Skills Charge for the Health and Care Worker visa
There is no Immigration Skills Charge for the Health and Care visa. NHS trusts, CQC-registered care providers, and other employers sponsoring workers on the Health and Care Worker route do not pay the Immigration Skills Charge at all.
This exemption applies to the full list of eligible SOC codes under the Health and Care Worker visa, including senior care workers (6135), care workers (6136), nurses (2231), doctors (2211 and others), social workers (2442), and allied health professionals.
Why the exemption exists. The Home Office introduced the Health and Care Worker route in 2020, with reduced fees and an exemption from the Immigration Skills Charge, to support staffing in the health and social care sector. The exemption survived the December 2025 fee increase unchanged.
That said, employers should not confuse the Immigration Skills Charge exemption with the overall cost exemption. A Certificate of Sponsorship fee, application fees, and the sponsor's own administrative costs still apply. Browse Health and Care visa jobs for examples of the roles this exemption covers.
Immigration Skills Charge refunds: when sponsors get money back
The Home Office issues refunds in two scenarios: full refunds when the sponsorship never goes ahead, and partial refunds when it ends earlier than the period the sponsor paid for.
Full refunds
The Home Office returns the whole charge when:
- The Home Office refuses the visa application
- The sponsor or worker withdraws the application before the Home Office decides
- The sponsor does not use the Certificate of Sponsorship within its validity period
- The Home Office grants the worker a visa but the worker does not start the role
Partial refunds
The Home Office returns the portion attributable to unused months when:
- The Home Office grants leave for a shorter period than the Certificate of Sponsorship covered
- The worker leaves the sponsoring employer early
- The worker changes sponsor (the new sponsor pays the Immigration Skills Charge for the period they sponsor)
- The Home Office grants the worker Indefinite Leave to Remain partway through the sponsorship period
The Home Office issues refunds in six-month blocks. A worker who leaves after 14 months on a three-year Certificate of Sponsorship generates a refund for the remaining 22 months, paid as four six-month blocks (24 months) less the partial period already used. The Home Office rounds in the sponsor's favour where the period straddles a six-month boundary.
How refunds are paid
The Home Office refunds the original payment to the payment card on the Sponsor Management System. Processing starts automatically when the system records the triggering event (e.g., visa refusal, CoS expiry, or a change of sponsor). Sponsors do not need to apply separately.
Where the original card has expired or been cancelled, the Home Office sends the refund by bank transfer following a separate confirmation request.
What happens if a sponsor does not pay the Immigration Skills Charge
A sponsor cannot assign the Certificate of Sponsorship without paying the full Immigration Skills Charge. The Sponsor Management System blocks the assignment until payment clears.
If a sponsor issues a Certificate of Sponsorship with the wrong amount (for example, paying small-sponsor rates while qualifying as a large sponsor), the Home Office detects the discrepancy at the visa application stage. The Home Office pauses the application while the sponsor pays the shortfall. Failure to settle the balance leads to the refusal of the worker's visa application.
The Home Office treats persistent under-payment, or attempts to disguise sponsor size to qualify for the lower rate, as a sponsor licence compliance breach. The Home Office can suspend or revoke the licence on this basis alone.
Can a sponsor pass the Immigration Skills Charge to the worker?
No. The sponsor must pay the Immigration Skills Charge and cannot pass it on to the worker in any form.
This includes:
- Direct invoicing of the worker
- Salary deductions framed as repayment
- Clawback clauses in employment contracts
- Loan agreements that mirror the charge amount
- Withholding pay or benefits to recover the charge
The Home Office treats any of these as a sponsor licence compliance breach. Detected breaches typically result in a licence downgrade from A-rated to B-rated, and repeated or deliberate breaches lead to revocation. Workers can report attempted recovery to the Home Office, which routinely investigates these reports.
Other sponsorship-related fees that the sponsor can pass on to the worker include. For a small sponsor or registered charity assigning the same three-year sponsorship, the Immigration Skills Charge falls to £1,440, taking the total sponsor-mandated cost to £1,965 and the full-package cost to £5,839. the Immigration Health Surcharge and the visa application fee. These are technically the worker's responsibility, though many sponsors choose to cover them as part of the relocation package.
Total cost of sponsoring a worker: Immigration Skills Charge in context
The Immigration Skills Charge is one of four headline costs in a Skilled Worker sponsorship. For a medium or large employer sponsoring a worker on a three-year Skilled Worker visa from outside the UK, the total fee profile looks like this:
| Fee | Amount (3-year sponsorship) | Payable by |
|---|---|---|
| Immigration Skills Charge | £3,960 | Sponsor (cannot pass on) |
| Certificate of Sponsorship fee | £525 | Sponsor |
| Skilled Worker visa application fee (3 years, out-of-country) | £769 | Worker (sponsor may cover) |
| Immigration Health Surcharge (3 years × £1,035) | £3,105 | Worker (sponsor may cover) |
| Total sponsor-mandated cost | £4,485 | Sponsor only |
| Total package if sponsor covers everything | £8,359 | Sponsor |
For a small sponsor or registered charity assigning the same three-year sponsorship, the Immigration Skills Charge falls to £1,440, taking total sponsor-mandated cost to £1,965 and the bringing cost to £5,839.
Where the role qualifies for the Health and Care Worker visa, the Immigration Skills Charge drops out entirely, and the Certificate of Sponsorship fee falls to £55, reflecting the reduced-fee structure for that route.
How to budget for the Immigration Skills Charge across a hiring plan
Sponsors pay the Immigration Skills Charge upfront for the full sponsorship period. That makes it a cashflow item, not just a P&L cost. A finance team modelling overseas hiring should account for the full charge at the point of CoS assignment, rather than amortising it across the sponsorship period.
For sponsors hiring at scale, the practical approach is to:
- Pre-allocate budget by quarter based on planned CoS assignments, multiplied by the appropriate rate
- Track refund eligibility against leavers and visa refusals: refunds are not automatic recoveries on the balance sheet and take time to process
- Use Health and Care Worker sponsorship where eligible to avoid the charge entirely.
- Match sponsorship length to expected tenure rather than defaulting to the maximum five years, which front-loads costs unnecessarily
- Review small-sponsor status annually to confirm whether the lower rate still applies
A common mistake is assigning a five-year Certificate of Sponsorship by default. Five-year CoS for a medium or large sponsor costs £6,600 in Immigration Skills Charge alone. A three-year CoS at £3,960 is materially cheaper, and the sponsor can extend the sponsorship later (with a partial Immigration Skills Charge top-up payment at the time of extension).
Immigration Skills Charge FAQ
How much is the Immigration Skills Charge fee right now?
£1,320 for the first 12 months and £660 per additional six months for medium and large sponsors. £480 for the first 12 months, plus £240 per additional 6-month period, for small sponsors and registered charities. Rates effective from 16 December 2025.
Is the Immigration Skills Charge increasing again?
The Home Office has announced no further increase beyond the 32% rise on 16 December 2025. The next opportunity for the rate to change would require fresh secondary legislation amending the Immigration Skills Charge Regulations 2017.
What is Immigration Skills Charge in plain English?
The Immigration Skills Charge is a tax that UK employers pay when they sponsor an overseas worker on the Skilled Worker route. The money goes to UK skills training. The employer pays the full amount upfront when assigning a Certificate of Sponsorship, and cannot reclaim it from the worker.
When can a sponsor claim a refund of the Immigration Skills Charge?
The Home Office issues a full refund when it refuses the visa, the sponsor withdraws the application, the CoS goes unused, or the worker does not start the role. The Home Office issues a partial refund when the worker leaves early, switches sponsor, or receives Indefinite Leave to Remain before the sponsored period ends. The Home Office sends refunds in six-month blocks to the original payment card.
Does the Immigration Skills Charge apply to the Health and Care Worker visa?
No. Sponsorship on the Health and Care Worker visa is entirely exempt from the Immigration Skills Charge. This applies to all eligible SOC codes on that route, including nurses, doctors, care workers, senior care workers, and social workers.
Is the Immigration Skills Charge the same as the Certificate of Sponsorship fee?
No. They are two separate fees. The sponsor pays both when assigning a Certificate of Sponsorship. The CoS fee is currently £525 per certificate. The Immigration Skills Charge is per year of sponsorship and scales with the length of sponsorship.
How does a sponsor know if it qualifies as a small sponsor?
The sponsor must meet at least two of the three thresholds: turnover not more than £10.2 million, balance sheet total not more than £5.1 million, and average number of employees not more than 50. The test is the small company definition in section 382 of the Companies Act 2006.
Can a sponsor ask the worker to pay the Immigration Skills Charge?
No. A sponsor cannot pass the charge to the worker in any form, including salary deductions, repayment clauses, or clawback agreements. Doing so is a sponsor licence compliance breach and can lead to licence revocation.
When is the Immigration Skills Charge paid?
The sponsor pays when assigning the Certificate of Sponsorship in the Sponsor Management System. The full amount for the intended sponsorship period is paid in a single transaction before the worker applies for their visa.
Which SOC codes are exempt from the Immigration Skills Charge?
Twelve codes covering scientific research, higher education teaching, clergy, and professional sport: 2111, 2112, 2113, 2114, 2115, 2119, 2161, 2162, 2311, 2463, 3431, and 3432. Workers assigned to roles under these codes attract no Immigration Skills Charge regardless of sponsorship length.
What is the total Immigration Skills Charge for a five-year sponsorship?
£6,600 for a medium or large sponsor (£1,320 + £660 × 8 six-month blocks). £2,400 for a small sponsor or charity (£480 + £240 × 8). The sponsor pays both figures in a single upfront transaction when assigning the Certificate of Sponsorship.
Next steps for sponsors
If your organisation already holds a sponsor licence, the practical next step is to refresh internal cost models against the December 2025 rates and tighten the process for tracking refund-eligible events (leavers, visa refusals, sponsor changes).
If you are considering a sponsor licence for the first time, factor the Immigration Skills Charge into your full sponsorship business case alongside the Certificate of Sponsorship fee, application fees, and Immigration Health Surcharge.
For employers in social care, healthcare, or research-intensive roles, check whether sponsorship through the Health and Care Worker route or under an exempt SOC code removes the Immigration Skills Charge entirely. The savings on a single five-year sponsorship cover the cost of the licence application several times over.
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