If you plan to sponsor an overseas worker, the immigration skills charge is one of the first costs you need to budget for, and one of the easiest to get wrong. The charge is paid by the sponsoring employer when a certificate of sponsorship is assigned for either the Skilled Worker or Senior or Specialist Worker role.
Pay the wrong amount, claim an exemption you are not entitled to, or try to recover the fee from the worker, and you risk an invalid certificate, a refused visa application and action against your sponsor licence.
At Salam Immigration, our team provides expert guidance for skilled worker route and other visas.
This guide explains how the immigration skills charge works in 2026, what you pay, who is exempt, when refunds are available and how to stay compliant. All figures apply to a certificate of sponsorship assigned on or after 16 December 2025.
Who Needs to Pay the Immigration Skills Charge (ISC) in 2026?
If you sponsor a migrant worker in a qualifying role, you must pay the immigration skills charge unless a specific exemption applies. The Home Office enforces this strictly. Underpaying, missing the charge or claiming an exemption that does not fit can leave you with an invalid certificate, a refused visa application and a compliance review of your sponsor licence.
If you are new to the process, our guide to how work sponsorship in the UK works explains the framework under updated immigration rules.
When Does the Immigration Skills Charge Apply?
You might have to pay an additional charge when you assign a certificate of sponsorship to someone applying for a Skilled Worker or Senior or Specialist Worker visa. In practice, the immigration skills charge applies when a sponsored worker is:
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applying from outside the UK to work in the UK for 6 months or more, or
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applying from inside the UK for any length of time.
The charge is calculated per sponsored worker, not per sponsor licence. You will not need to pay the charge for any of the worker’s dependants, such as their partner or child, so the worker’s dependants do not add to your bill. You can read the rules on the official GOV.UK immigration skills charge page.
The charge does not apply to every sponsored route and health and care occupations. Temporary Worker routes, the Seasonal Worker route and the Graduate route do not attract it, because the charge is limited to the Skilled Worker and Senior or Specialist Worker routes.
Global Business Mobility sponsors who bring staff in on other sub-routes should check the rules of their own immigration route.
Who Is Legally Responsible for Paying?
The sponsoring organisation is legally responsible for the immigration skills charge to support skills funding. You must pay it when you assign the certificate, and you cannot recover it from the worker directly, through payroll deductions or through a repayment clause.
Your licence may be revoked if you ask the sponsored worker to pay the fee or any costs linked to your application.
There is one helpful tax development. The government is introducing an Income Tax exemption for employer-paid immigration skills charge and certificate of sponsorship fees under the Skilled Worker route, applying to payments made on or after 28 October 2026. That means an employer-paid charge should not create a tax liability for the worker. Check the detail with your payroll adviser.
Does the Charge Apply to Extensions and Job Changes?
It can. You must pay the charge for the full length of the visa, and if a new certificate allows the worker more time, you pay for that extra time. By contrast, you do not need to pay the additional charge if the new certificate does not extend the time on your sponsored worker’s visa.
If you are planning an extension for migrant employees, our Skilled Worker visa extension checklist sets out the documents and steps involved.
Which Organisations Must Pay?
Public and private sector employers are both caught. Whether you run an NHS-linked service, a technology business or a restaurant group, if you assign a certificate of sponsorship for a Skilled Worker or a Senior or Specialist Worker, you must factor in the skills charge. Charities pay the reduced rate but are not exempt.
How Much Is the Immigration Skills Charge? 2026 Rates and Examples
The immigration skills charge depends on two things: the size of your organisation and the period of employment stated on the certificate of sponsorship. The charge increased with effect from 16 December 2025, the first increase since its introduction in 2017. The uplift was around 32%, and it was made by the Immigration Skills Charge (Amendment) Regulations.
Current Immigration Skills Charge Rates
The amount you pay is based on the size of your organisation and how long the worker will work for you, using the start and end dates on their sponsorship certificate. The current rates are:
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Period on the certificate
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Small or charitable sponsor
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Medium or large sponsor
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First 12 months
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£480
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£1,320
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Each additional 6 months
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£240
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£660
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2 years
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£960
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£2,640
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3 years
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£1,440
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£3,960
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4 years
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£1,920
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£5,280
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5 years (maximum)
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£2,400
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£6,600
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Rates before 16 December 2025 were lower. The new rates apply to certificates assigned on or after that date, while certificates assigned earlier kept the old rates even if the visa application was submitted later. The date of assignment decides the rate, not the date of the visa application. If you have a certificate that was assigned before the change, check which rate you paid before you plan an extension.
How the Charge Is Calculated
The charge is built from a fixed first-year amount, then 6-month blocks. Part-periods are rounded up, because the fee cannot be divided month by month. For example, if a worker is allocated a certificate for 20 months, a small or charitable sponsor pays £960 and a large sponsor pays £2,640. Use these steps to work out your figure:
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Confirm whether you are a small or charitable sponsor, or a medium or large sponsor, on the day you assign the certificate.
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Check the start and end dates on the certificate of sponsorship.
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Apply the first-year fee to any period of 12 months or less.
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Add one 6-month block for each further 6 months, counting any part-period as a full block.
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Pay the total through the SMS when you assign the certificate.
Two quick examples show the rounding in action. A certificate for 2 years and 4 months is charged as 2 years and 6 months. A certificate for 3 years and 1 month is charged as 3 years and 6 months.
What Counts as a Small or Charitable Sponsor?
You are usually a small sponsor if at least 2 of the following apply: your annual turnover is £15 million or less, your total assets are worth £7.5 million or less, or you have 50 employees or fewer. Registered charities and other charitable organisations qualify for the reduced rate in their own right. Charitable sponsors include:
If you qualify as a small or charitable sponsor, tell UK Visas and Immigration (UKVI) through the SMS before you assign the certificate. If you pay the medium or large rate and had already notified UKVI of your small or charitable status, you can claim a partial refund of the difference.
Other Sponsorship Costs to Budget For
The skills charge is only part of the cost of bringing in overseas workers. A typical Skilled Worker hire also involves:
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Certificate of sponsorship fee: £525 for each Skilled Worker or Senior or Specialist Worker certificate, paid on top of the charge.
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Sponsor licence: £611 for small or charitable sponsors and £1,682 for medium and large sponsors, where you do not already hold one.
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Visa application fee: paid by the worker or the employer, depending on your policy.
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Immigration Health Surcharge: £1,035 a year for most adults, usually paid by the worker.
As a worked example, a small sponsor with an existing sponsor licence could pay as much as £12,493 to sponsor a Skilled Worker for five years, made up of £2,400 in skills charge, £525 for the certificate, £5,175 in health surcharge and £1,618 in visa fees.
For a wider comparison of costs, see our guide to work visa UK cost in 2026. Fees were adjusted from 8 April 2026, so confirm the current figures on the day you assign.
Immigration Skills Charge Exemptions in 2026
The charge applies broadly, but a small number of exemptions exist. Getting them right can save you thousands of pounds per sponsored worker. Getting them wrong can cost you more than the fee itself.
Who Is Exempt From the Immigration Skills Charge?
You do not pay the charge where one of the exemptions in the Immigration Skills Charge Regulations 2017 applies. The main ones are:
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Switching from the Student route: the worker is switching from the student route, which includes where they switched and are now extending in the same role with the same sponsor. The exemption does not stretch to Graduate visa holders. Our student visa page explains the study route, and our guide on how to switch to a Skilled Worker visa covers the in-country process.
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Listed research and academic occupations: from 16 December 2025, specific occupation codes including chemical scientists, biological scientists, biochemists and biomedical scientists, physical scientists, social and humanities scientists, research and development managers, higher education teaching professionals, clergy, sports players and sports coaches are exempt. The list also covers social science professionals and other researchers not linked to a specific unspecified discipline. Always check the exact occupation code before you assign.
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Graduate trainees: a graduate trainee on an intra-company transfer is exempt if the post is for no more than 12 months and is part of a structured graduate training programme.
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Short entry clearance: a worker seeking entry clearance to the UK for less than 6 months is exempt. This applies to applicants coming from outside the UK only.
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Same sponsor, same length of stay: a worker continuing with their current sponsor who needs a new certificate is exempt, provided their length of stay remains the same.
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EU and Latvian non-citizen passport holders: a worker who is an EU national or holds a Latvian non-citizen passport may be exempt under the Global Business Mobility route, where the certificate is for no more than 3 years and they currently work for the sponsor’s offices or a linked business in the EU.
No Exemption for Shortage Occupation Roles
Being in a shortage-type role does not remove the charge. Reduced visa fees for certain roles are a separate matter, and the immigration skills charge must still be paid in full unless the occupation code or the worker’s circumstances fall within one of the exemptions above. Do not assume that a lower visa fee means a lower or zero skills charge.
Your Responsibilities When Claiming an Exemption
If you rely on an exemption, you must be able to prove it. Keep the evidence on file, such as the worker’s current permission, the occupation code reasoning and the certificate details. The Home Office can ask for this during a compliance visit, and an incorrect claim can lead to:
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refusal of the worker’s visa application
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a requirement to pay the shortfall
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downgrading, suspension or revocation of your sponsor licence
At Salam Immigration, we regularly review exemption claims and occupation code choices for employers before a certificate is assigned, so the evidence is on file if the Home Office ever asks for it.
When and How to Pay the Immigration Skills Charge
Timing matters. The charge is due at one specific point in the sponsorship process, and an error here can delay or sink the worker’s visa application.
When Is the Charge Due?
You pay the immigration skills charge at the point you assign the certificate of sponsorship, in one payment for the whole period stated on the certificate. There is no option to pay in instalments or to delay payment. The worker then generally has 3 months from assignment to use the certificate in their visa application.
Underpayment is a common problem. If you underpay, most often by paying the small sponsor rate when you are a medium or large sponsor, the certificate is invalid until the difference is paid, and UKVI emails a top-up payment link valid for 72 hours to your Key Contact. If the top-up is still unpaid, the worker’s application is refused.
How to Make the Payment
You pay through the Sponsorship Management System, the Home Office’s online sponsor portal. Have the following ready before you assign:
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a valid debit or credit card
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internal payment authorisation, if your finance team requires it
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accurate details of the worker, the occupation code, the salary and the start and end dates
The charge is separate from the worker’s visa application fee and the Immigration Health Surcharge. It is also separate from the certificate fee, so you pay each of them in addition.
Immigration Skills Charge Refunds
You can get a full or partial refund in defined situations, and it is worth knowing which. You get a full refund if the worker’s visa application is refused or withdrawn, or if it is successful but they do not come to work for you. A partial refund is available if the worker:
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gets less time on their visa than you sponsored them for
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starts working for you but then changes to another sponsor
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leaves their job before the end date on the certificate
UKVI keeps the first 12 months and refunds unused 6-month blocks after that. You usually get a refund within 90 days of the relevant event. Refunds are issued via the Sponsor Management System.
There is no refund if your licence is revoked or the worker moves job within your organisation. As an example, if a medium or large sponsor pays £6,600 on a five-year certificate and the worker leaves after eight months, the first 12 months (£1,320) is not returned and the unused blocks are.
What Happens If You Do Not Pay?
Failing to pay the correct amount on time has real consequences:
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the certificate of sponsorship is invalid until the shortfall is paid
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the worker’s visa application can be refused
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the Home Office may take compliance action against your business
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your sponsor licence may be downgraded, suspended or revoked
How the Immigration Skills Charge Affects Your Hiring Strategy
For many employers, especially SMEs, the immigration skills charge is a strategic cost, not just a line on an invoice. With the higher rates now in force, you need to plan for it before you make an offer. If you are bringing a team into the country, our business relocation UK checklist shows how to manage visas, sponsorship costs and staff support in one plan.
Budgeting for the Upfront Cost
The skills charge is paid upfront and in full. For a medium or large sponsor, a five-year certificate means £6,600 before the worker has applied for anything. Add the certificate fee, visa costs and health surcharge, and the total government cost per hire can be very significant. When you plan, consider:
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recruitment budgets, especially when several roles are filled together
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whether a shorter certificate is realistic for the role, since the charge rises with every 6-month block
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headcount plans in sectors that rely on overseas workers, such as healthcare, engineering and hospitality
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the effect of salary thresholds on who you can sponsor, as set out in our guide to the Skilled Worker visa minimum salary 2026
Choosing Between Visa Routes
Sometimes the charge shapes the route you use. A few points to consider:
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Some roles on other routes, such as Temporary Worker routes, do not attract the charge.
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A Graduate Trainee on the Global Business Mobility route is exempt where the conditions are met.
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A worker switching from a Student visa in the UK can be exempt, so timing matters.
Check the full rules for each route before you commit.
Outsourcing and Offshoring
Some employers consider offshoring a role or engaging contractors abroad to avoid sponsorship. That can avoid the charge, but it brings legal, tax, data protection and operational questions of its own. Weigh those carefully before treating it as a saving.
Immigration Skills Charge Compliance: Avoiding Penalties in 2026
Paying the charge is part of a tightly regulated sponsorship system. Mistakes can lead to Home Office audits, financial consequences and action against your licence.
Common Compliance Mistakes
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Forgetting to pay the charge when assigning a certificate of sponsorship.
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Paying the wrong rate, for example assuming you are a small sponsor when you are not.
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Claiming an exemption without evidence, or using the wrong occupation code.
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Missing that an extension with a new certificate triggers a fresh charge.
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Asking the worker to repay or share the charge.
Best Practice for Staying Compliant
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Check your sponsor size each year: confirm whether you still meet the turnover, asset and headcount tests, and notify UKVI through the SMS of any change.
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Assign the certificate accurately: make sure the occupation code, salary and dates match the real terms of employment.
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Verify any exemption first: check the worker’s current permission and the code against the official guidance before you claim.
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Keep payment records: save the receipt for every charge, as you may need it for a refund claim or an audit.
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Use an internal checklist: include the charge, the certificate fee and the exemption check for each sponsored hire.
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Track rule changes: fees and rules can change, so review the Home Office sponsor guidance before each assignment. The rules on sponsor licence renewal are also worth checking if your licence has a fixed term.
What Happens If You Get It Wrong?
If the Home Office finds that you failed to pay the charge, claimed an exemption you were not entitled to, or misstated your sponsor size, it can require payment of the shortfall, refuse the visa application and take action against your sponsor licence.
At Salam Immigration, we often help employers review past certificates so any problem is corrected before a compliance visit, not after it.
Get Your Sponsorship Costs Right With Salam Immigration
If you need help working out the right charge, checking an exemption or preparing sponsored hires, these services by Salam Immigration are a good place to start.
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Skilled Worker Visa: our team supports employers and workers through the Skilled Worker route, including checking the occupation code, salary level and certificate details that decide how much skills charge you pay.
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UK Work Visas: if you are unsure which route fits a role, our advisors compare the options and the costs, including where the charge applies and where it does not.
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Global Business Mobility Visa: for overseas businesses sending staff to the UK, we explain how the Senior or Specialist Worker route and its exemptions work.
Frequently Asked Questions
What is the immigration skills charge in the UK?
It is a fee paid by UK employers when they assign a certificate of sponsorship for a Skilled Worker or global business mobility Senior or Specialist Worker. It is designed to encourage investment in the domestic workforce and is charged in addition to the certificate fee.
How much is the immigration skills charge in 2026?
Medium and large sponsors pay £1,320 for the first 12 months and £660 for each additional 6 months. Small or charitable sponsors pay £480 and £240. These rates apply to certificates assigned on or after 16 December 2025.
How much is the immigration skills charge for a 5-year visa?
It is £6,600 for medium or large sponsors and £2,400 for small or charitable sponsors. This is paid in full when you assign the certificate.
Who pays the immigration skills charge, the employer or the worker?
The employer pays. You must not ask the worker to pay or repay it, directly or through payroll, because doing so can lead to revocation of your sponsor licence.
Can I get an immigration skills charge refund?
Yes, in set circumstances. You get a full refund if the application is refused or withdrawn or the worker never starts, and a partial refund if the worker leaves early or gets less time than you paid for. Refunds are usually decided within 90 days.
Does the immigration skills charge apply to a Filipino worker or any other nationality?
Yes, nationality makes no difference. The charge is based on the route and the sponsor, and the employer pays it.
Speak to an Adviser About the Immigration Skills Charge
If your next step is assigning a certificate, our team can check your sponsor size, the occupation code and any exemption before you pay, so the figure is right first time. If your hire is part of an overseas transfer, our Global Business Mobility Visa service can confirm which route and charge apply.
With over 20 years of experience, Salam Immigration offers consultations in person, by phone or online from our Manchester head office. To get started, contact Salam Immigration.
This article is general guidance, not legal advice.
