Section A: What is the sponsor licence application fee?
Sponsorship is a valuable route to accessing global talent, but it requires upfront investment and a commitment to ongoing legal and regulatory duties.
The headline sponsor licence application fee is a mandatory cost that UK employers must pay when applying for a licence to sponsor skilled workers from overseas. The fee is determined by the size and type of the organisation and is paid as part of the application process to UK Visas and Immigration (UKVI).
The sponsor licence fee will also depend on the type of licence that you are applying for. For sponsor licence fee purposes, there are two types of licence: a ‘Worker’ and ‘Temporary Worker’ licence. The ‘Worker’ sponsor licence will allow you to recruit migrant workers in various different types of skilled employment in the UK, typically in long-term roles, such as the Skilled Worker route, as well as the Senior or Specialist Worker route under the Global Business Mobility (GBM) umbrella.
1. How much is the sponsor licence application fee?
The fee for a ‘Worker’ licence is £574 for small or charitable sponsors and £1,579 for medium or large sponsors.
When applying for a ‘Temporary Worker’ licence, the sponsor licence fee is £574, regardless of what type of organisation you are.
You can apply for both types of licence at the same time or apply to add the other type to an existing licence. The cost to apply for both types of sponsor licence at the same time will also depend on the size and charitable status of your business, costing £574 or £1,579, respectively. There is no sponsor licence fee for a small or charitable sponsor to add a ‘Worker’ licence to an existing ‘Temporary Worker’ licence, with a fee of £1,005 for medium or large sponsors. There is no fee for an applicant of any size to add a ‘Temporary Worker’ licence to an existing ‘Worker’ licence.
| Sponsorship fees | Fee from 1 July 2025 |
|---|---|
| Premium Sponsor Service (12 months) Worker sponsor and Temporary worker sponsor – large sponsors | £25,000 |
| Premium Sponsor Service (12 months) Worker sponsor and Temporary worker sponsor – small sponsors | £8,000 |
| Premium Sponsor Service (12 months) Student sponsors | £8,000 |
| The expedited processing of a sponsorship management request made by a Worker sponsor or Temporary worker sponsor | £200 |
| Priority service for expedited processing of sponsor licence applications | £500 |
| Worker sponsor licence (large sponsor ) | £1,579 |
| Worker sponsor licence (small sponsor) | £574 |
| Student sponsor licence | £574 |
| Temporary Worker sponsor licence | £574 |
| Worker and Temporary Worker sponsor licence (large sponsor) | £1,579 |
| Worker and Student sponsor licence (large sponsor) | £1,579 |
| Worker, Temporary Worker and Student sponsor licence (large sponsor) | £1,579 |
| Temporary Worker and Student sponsor licence | £574 |
| Worker sponsor licence (large sponsor), where sponsor currently holds a Temporary Worker and/or Student Sponsor Licence | £1,005 |
| Endorsement fee for a Scale-up sponsor licence under Endorsing Body Pathway (payable to the endorsing body) excluding VAT | £1,500 |
| Student sponsor basic compliance assessment | £574 |
| Sponsor action plan | £1,579 |
| Certificate of Sponsorship (CoS) or approval under Sponsor a Worker: Skilled Worker, T2 Minister of Religion, Global Business Mobility – Senior or Specialist Worker | £525 |
| Certificate of Sponsorship (CoS) or approval under Sponsor a Worker – Temporary Worker including Global Business Mobility – Graduate Trainee, UK Expansion Worker, Service Supplier and Secondment Worker route, and Scale-up route | £55 |
| Certificate of Sponsorship (CoS) or approval under Sponsor a Worker for International Sportsperson route – Over 12 months | £525 |
| Certificate of Sponsorship (CoS) or approval under Sponsor a Worker for International Sportsperson route – Up to 12 months or less | £55 |
| Confirmation of Acceptance for Study (CAS) for student, child student | £55 |
2. Which licence fee applies?
The responsibility to pay the correct type of sponsor licence fee rests entirely with you as the applicant, where you risk your application being rejected if you underpay.
To qualify as a small sponsor, an organisation typically needs to satisfy at least two of these conditions: an annual turnover of no more than £15 million, total assets valued at £7.5 million or less, or a workforce of 50 or fewer employees.
For charitable sponsor status, the organisation must be a registered charity in England or Wales, Scotland, or Northern Ireland, with unregistered Northern Irish charities providing evidence of their charitable tax status from HMRC.
Other qualifying charitable entities include excepted charities, exempt charities, and ecclesiastical corporations set up for charitable objectives.
3. Is the sponsor licence application fee refundable?
The sponsor licence application fee is non-refundable once UKVI has started considering the application. If you withdraw your application before a caseworker begins work on it, you may be able to get the fee refunded.
Refunds are not available if the application is refused for any reason, including applying for the wrong licence type, submitting incomplete documents, or failing the suitability or eligibility tests, for example, compliance history, inadequate HR systems, or previous immigration breaches.
If the application is rejected as invalid before consideration starts, a refund may be made under the Home Office’s general refunds policy, sometimes minus an administration charge.
DavidsonMorris Strategic Insight
Take the time to double check you are paying the correct fee. Underpay the application fee and your application will be rejected as invalid. Overpay, and the Home Office will not refund the difference.
Think of the application fee as a sunk cost. Once the applications has been submitted, refunds are rare and only possible when the application has been withdrawn before processing has started.
Section B: Additional Sponsor licence application fees
Applying for a sponsor licence involves more than just the initial application fee. Employers should also be aware of a range of additional costs that can arise during the licence process and once the licence is granted. These include fees for faster processing, costs linked to assigning Certificates of Sponsorship, and statutory charges such as the Immigration Skills Charge. Understanding how these extra fees apply ensures organisations budget correctly and avoid unexpected expenses that could delay recruitment or breach sponsorship duties.
1. Fast-tracked sponsor licence application processing
Most sponsor licence applications are usually decided within 8 weeks under the standard service
Under the fast-tracked pre-licence priority service, you may be able to get a decision on your licence application within 10 working days for an additional fee of £500. However, this service does not necessarily guarantee a quicker turnaround time, especially where a compliance visit is needed. It also does not guarantee a positive outcome. It is also worth noting that this service is subject to a daily cap, where faster decisions are allocated in the order that requests arrive, so on a first come, first served basis from 9am Monday to Friday. You will be advised how to request a faster decision after you apply.
Processing delays will result if the Home Office requests further information or documents, or a compliance visit to your premises is considered necessary before reaching a decision on your application. This underscores the importance of ensuring the initial application is comprehensive and complete and being inspection-ready when you make the application.
2. Certificate of Sponsorship fee
In addition to the sponsor licence fee, there will be a fee to assign each Certificate of Sponsorship (CoS) to a migrant worker on any given route. The CoS will contain a unique reference number which the visa applicant will need to be able to apply for entry clearance or permission to stay in the UK and to work in the job role set out in their CoS.
The fee to assign a CoS to a worker on any of the ‘Temporary Worker’ routes is £55, such as including the Global Business Mobility Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker and Scale-up routes.
The fee to assign a CoS on one of the main ‘Worker’ routes is £525, such as Skilled Worker, T2 Minister of Religion, and Global Business Mobility Senior or Specialist Worker.
For the International Sportsperson route, if the CoS is assigned for more than 12 months, the fee is £525, while the fee for assignments of 12 months or less is £55.
3. Immigration Skills Charge
The immigration skills charge (ISC) is an additional cost that you may have to pay when assigning CoS to new recruits on the Skilled Worker and the Senior or Specialist Worker routes. Unless this charge is paid, the sponsorship certificate will not be treated as valid, where the migrant worker will not be able to make a visa application until this is paid.
As with the sponsor licence fees, the immigration skills charge will depend on the size or charitable status of your organisation, as well as the length of stay for which your new recruit will be coming to work in the UK. This charge is set at £364 for small or charitable sponsors for the first 12 months of leave, plus £182 for every additional 6 months, or £1,000 for medium or large sponsors for the first 12 months, plus £500 for every additional 6 months of leave.
The Government has set out its intention to increase the Immigration Skills Charge by 32%, although no timeline has yet been announced for this.
As the sponsor of Skilled and/or Senior or Specialist Workers you will have to pay the immigration skills charge if prospective migrant workers are applying for a visa from overseas to work in the UK for 6 months or more, or inside the UK for any length of time.
The ISC must be paid by the employer.
4. Visa application costs
As a sponsor of migrant workers, you may also elect to take responsibility for the costs to the worker associated with applying for a visa, having been assigned a CoS. These will include a visa application fee, any premium processing fee to pay for a faster decision and an annual healthcare surcharge to enable them to access the NHS during their stay.
The fee to apply for the different types of work visas vary, depending on the applicant’s circumstances, and are in addition to the healthcare surcharge.
In some cases, it may be possible to pay for a faster decision for an additional fee under premium visa processing services. For example, if the applicant is applying to switch to a work route from the UK, the cost for the priority and super priority service will be an extra £500 and £1000 respectively.
5. Scale-up licence endorsement
Employers applying for a Scale-up sponsor licence under the endorsing body pathway must pay a separate endorsement fee of £1,500 to the endorsing body, excluding VAT. This fee is in addition to the Home Office licence application charge and covers the cost of verifying that the business meets the specific eligibility criteria for the Scale-up route.
6. Action plans following downgrades
If a sponsor licence is downgraded from an A-rating to a B-rating, the employer must follow a Home Office action plan to regain compliance. The fee for this plan is £1,579. During the downgrade period, the sponsor may not assign new Certificates of Sponsorship until the improvements are made and the licence rating is restored. This can create operational disruption as well as additional cost.
| Cost type | Mandatory / Optional | Amount |
|---|---|---|
| Worker sponsor licence fee (large sponsor) | Mandatory | £1,579 |
| Worker sponsor licence fee (small or charitable sponsor) | Mandatory | £574 |
| Temporary Worker sponsor licence | Mandatory | £574 |
| Certificate of Sponsorship (CoS) – Worker routes | Mandatory | £525 |
| Certificate of Sponsorship (CoS) – Temporary Worker routes | Mandatory | £55 |
| Immigration Skills Charge (Skilled Worker / Senior or Specialist Worker) | Mandatory (where applicable) | £364–£1,000 first 12 months, plus £182–£500 per additional 6 months |
| Premium customer service subscription | Optional | £25,000 (large sponsors) / £8,000 (small or charitable sponsors) |
| Compliance assessment (Student sponsors) | Mandatory (for student sponsors) | £574 |
| Action plan (licence downgrade to B-rating) | Conditional | £1,579 |
| Scale-up licence endorsement (endorsing body fee) | Conditional | £1,500 (plus VAT) |
DavidsonMorris Strategic Insight
Avoid financial risk exposure by mapping out the complete cost of sponsorship to your organisation. Each CoS will incur a charge, and possibly the ISC, so take a cumulative view, aligned to your workforce planning needs and recruitment strategy.
Section C: Recouping immigration fees from sponsored workers
Employers are increasingly scrutinised by the Home Office when it comes to recovering immigration-related costs from sponsored workers. Sponsorship generates unavoidable expenses, but while some of these can be legitimately shared with employees, others are strictly prohibited. Failure to comply with these rules can place your sponsor licence at risk, including suspension or revocation.
| Cost type | Recoverable? | Notes |
|---|---|---|
| Sponsor licence application fee | No | Includes administrative and priority service fees |
| Certificate of Sponsorship (CoS) fee | No | Cannot be passed on to the worker under any circumstances |
| Immigration Skills Charge | No | Employer is legally responsible for full payment |
| Visa application fee | Yes | May be agreed in advance with the worker |
| Immigration Health Surcharge (IHS) | Yes | Employer may choose to cover or recover, subject to employment law |
| Priority or super priority visa processing | Yes | Recoverable if contractually agreed with the worker |
| Relocation or legal representation costs | Yes | Permitted if transparent and reasonable |
1. Prohibited costs
Home Office rules make clear that certain expenses must be met entirely by the sponsoring employer and cannot be recovered from the worker under any circumstances. These include:
- Sponsor Licence Application Fees: All fees associated with applying for a sponsor licence, including any administrative or priority service costs.
- Certificate of Sponsorship (CoS) Fees: The cost of assigning a CoS to a sponsored worker.
- Immigration Skills Charge: This fee has always been non-recoverable and must be absorbed entirely by the employer.
The prohibition on recovering the Immigration Skills Charge has been in place since its introduction. From 31 December 2024, the ban was extended to include licence and CoS fees for Skilled Worker sponsorship. From 9 April 2025, the restriction applies to all sponsored work routes. The Home Office has confirmed that it will normally revoke a licence if an employer seeks to recoup any of these prohibited costs from a worker.
2. Costs that may be shared or recouped
Employers may, in some circumstances, agree with workers that they contribute to certain other costs. These include:
- Visa application fees for entry clearance or leave to remain
- The Immigration Health Surcharge (IHS)
- Priority or super priority processing fees for visa applications
- Relocation expenses or legal representation costs, if agreed in advance
Any agreement to recover these costs must comply with UK employment law. Deductions must be transparent, set out clearly in the employment contract or repayment agreement, and must not amount to unlawful deductions from wages.
3. Clawback agreements
Some employers opt for a clawback agreement to recover part of their investment if the worker leaves employment earlier than agreed. These can cover visa fees, IHS, or relocation expenses, but must never include prohibited costs such as the licence application fee, CoS fees, or the Immigration Skills Charge.
Clawback clauses must be reasonable and proportionate. For example, they should taper the amount recoverable depending on how long the worker has remained employed, and must be clearly explained at the outset. Poorly drafted or overly onerous repayment terms risk being unenforceable and could lead to disputes or claims of unlawful deductions.
4. Risks of non-compliance
Attempting to shift banned costs onto sponsored workers can have severe consequences. Beyond potential licence revocation, employers risk suspension of the licence during investigation, disrupting recruitment and retention, employment disputes or tribunal claims if deductions breach employment rights, and reputational harm if practices are exposed during a Home Office compliance audit
Employers should:
- Review and update internal policies to reflect the expanded prohibitions from December 2024 and April 2025
- Train HR, recruitment and payroll teams on which costs are recoverable and which are not
- Audit employment contracts and repayment agreements to ensure compliance
- Take legal advice before introducing or enforcing clawback arrangements
In practice, the cost of getting this wrong far outweighs the benefit of shifting fees onto workers. A revoked licence can prevent all overseas recruitment, putting workforce planning and operations at serious risk.
DavidsonMorris Strategic Insight
Clawbacks are a high-risk area. Tighter rules are now in force, clarifying that sponsorship costs are the sole responsibility of the employer. Some applicant costs can still be recouped from the worker, so you need to be clear on what you can and cannot recoup. The Home Office takes a zero-tolerance approach, with revocation the normal sanction. Check contractual clawback clauses to be certain they are compliant under the current requirements and do not constitute a breach of the sponsor licence compliance duties.
Section D: Sponsor licence management costs
Having been granted either a ‘Worker’ and/or ‘Temporary Worker’ sponsor licence, you will be given the option to pay for a premium customer service. For medium or large sponsors, the cost for 12 months is £25,000, reduced to £8,000 for small or charitable sponsors, where this service offers an enhanced level of support for organisations employing migrant workers.
Each premium customer will have their own dedicated account manager, providing tailored guidance and support to meet the immigration needs of their business.
As a sponsor of ‘Workers’ or ‘Temporary Workers’, you can also pay £200 for the expedited processing of a sponsorship management request. This priority change of circumstances service allows sponsors to fast-track certain administrative changes in relation to their sponsor licence, such as requesting additional CoS allocation or changing any of the key personnel originally nominated in the sponsor licence application.
When using this service, you will usually receive a decision on your request within 5 working days where, under standard processing times, requests can take up to 18 weeks to process.
When you are approved for a sponsor licence, you will usually be granted a licence with an A-rating, although your licence may be downgraded to a B-rating if you fail to meet your sponsorship duties during its period of validity. Your duties as a licensed sponsor include keeping appropriate records for your sponsored workers and informing the UK Home Office if any of these workers are not complying with the main conditions of their visa.
If a decision is made by the Home Office to downgrade your sponsor licence, although you will still be able to assign CoS to existing workers looking to extend their permission to stay in the UK, you will not be able to issue new sponsorship certificates until you have made the necessary improvements and upgraded back to an A-rating. To be able to upgrade your licence you will need to follow a Home Office action plan at a cost of £1,579.
The only exception to being granted an A-rating is on the UK Expansion Worker route. If the Authorising Officer (AO) named in your licence application is based outside the UK, you will be given a provisional licence rating and will only be allocated one CoS which must be assigned to the AO to enable them to apply for entry clearance. It is only once your AO has successfully been granted a visa to come to the UK that they can up-rate your licence.
DavidsonMorris Strategic Insight
Sponsor licences are an ongoing investment. They can’t be left to just run. They need oversight, resources and budget to stay on the right side of compliance.
Shortcutting licence management risks non-compliance , and non-compliance invariably is more costly and stressful. Action plans cost money for the paperwork, plus the remedial work. It’s more cost-effective to manage the licence and avoid breaching your duties.
Section E: Summary
Applying for a sponsor licence involves far more than paying the initial application fee. Employers must be ready for a wide range of additional costs that arise throughout the sponsorship process, from Certificates of Sponsorship and the Immigration Skills Charge to premium services and compliance assessments. The Home Office has also tightened rules around recouping costs, prohibiting employers from passing on licence and CoS fees to sponsored workers.
Mismanaging these obligations can have serious financial and operational consequences, including the suspension or revocation of the licence. For employers, the key is careful financial planning and an informed approach to compliance. Building accurate cost forecasting into recruitment budgets ensures there are no surprises, while robust internal policies reduce the risk of enforcement action.
Section F: Need assistance?
DavidsonMorris offers a complete employer sponsorship licence application service, with our team of UK immigration specialists highly experienced in all the documentary and evidentiary requirements vital to a prompt and stress-free process when applying for a sponsor licence. We also provide guidance on best practice in managing the licence and avoiding enforcement issues. For guidance on applying for a sponsor licence, contact us.
Section G: Sponsor licence application fee FAQs
What is the sponsor licence application fee?
The sponsor licence application fee is the amount employers must pay when applying for a licence to sponsor skilled workers from overseas. The fee varies based on the size and type of organisation and the type of licence being applied for.
How much does the sponsor licence application fee cost?
For small businesses and charities, the Worker Sponsor Licence application fee is £574 and for larger employers is £1,579.
Are there additional costs involved?
Additional costs may include the Priority Service fee for expedited processing and mandatory fees for issuing Certificates of Sponsorship for individual workers.
Is the application fee refundable if the licence is refused?
The fee is non-refundable if refused. A refund may be available only if you withdraw before UKVI starts considering the application.
Can the application fee be paid in instalments?
The application fee must be paid in full at the time of submitting the application, or it will not be processed.
Section H: Glossary
| Term | Definition |
|---|---|
| Sponsor Licence | A licence issued by UK Visas and Immigration (UKVI) that allows UK employers to sponsor skilled workers from overseas. |
| Sponsor Licence Application Fee | The mandatory fee employers must pay when applying for a sponsor licence, varying based on organisation size and type. |
| Priority Service | An optional service that expedites the processing of sponsor licence applications for an additional fee of £500. |
| Certificate of Sponsorship (CoS) | A document issued by a sponsor to a foreign worker, allowing them to apply for a UK visa under a specific route. |
| UKVI | UK Visas and Immigration, the Home Office agency responsible for managing the UK’s visa and immigration system. |
| Non-Refundable Fee | A fee that is not returned to the employer if the licence application is refused by UKVI. |
| Eligibility Criteria | The conditions employers must meet to apply for a sponsor licence, including proving a genuine need for sponsorship and demonstrating compliance capabilities. |
| Compliance Obligations | The legal duties of sponsor licence holders, such as record-keeping, reporting changes, and ensuring workers meet visa requirements. |
| Supporting Documentation | Evidence required to accompany a sponsor licence application, such as proof of business registration and financial records. |
Section I: Additional Resources and Links
| Resource | Description | URL |
|---|---|---|
| UKVI sponsor licence guidance | Official Home Office guidance for Worker and Temporary Worker sponsor licences. | https://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators |
| Sponsor licence fees | Full list of current sponsor licence fees, CoS costs and premium service charges. | https://www.gov.uk/government/publications/visa-regulations-revised-table |
| Sponsor licence priority service | Information on the pre-licence priority service to expedite applications. | https://www.gov.uk/guidance/sponsor-licence-priority-service |
| Immigration Skills Charge | Details of the Immigration Skills Charge, including who it applies to and current rates. | https://www.gov.uk/guidance/immigration-skills-charge |
| Defined and Undefined CoS | Explanation of Certificates of Sponsorship, how they work and current fees. | https://www.gov.uk/uk-visa-sponsorship-certificates |
| Immigration Health Surcharge | Official page explaining the IHS, current rates and exemptions. | https://www.gov.uk/healthcare-immigration-application |
| Home Office compliance visits | Home Office inspections guidance for sponsor licence holders. | https://www.gov.uk/government/publications/sponsor-guidance |
