Readers should note these costs are likely to change in 2021 when the government launches its new points based system. At the time of writing (17/08/2020) the Immigration Health Surcharge is £400 per year, but this will be raised to £624 per year from 01/10/2024.
What are the Costs?
Companies MUST pay the following to sponsor a Tier 2 worker
- Immigration Skills Charge (unless the individual is switching from a Tier 4 (student) visa to a Tier 2 visa, will do a job with a PhD level standard occupational classification, or has a Tier 2 (ICT) Graduate Trainee visa).
For small, or charitable sponsors this costs £364 for the first 12 months and then £182 for each 6 month period after that. For medium or large sponsors it will cost £1000 for the first 12 months and £500 for each additional 6 month period. This will be refunded if the worker’s visa is refused or they do not start working with you. You will get a partial refund if they leave their job before the end date on the CoS.
- Sponsor Licence fee (if not already licensed) £536 for a small or charitable sponsor, £1476 if a medium or large sponsor. (small is defined as £10.2 million or less annual turnover and 50 employees or fewer). This is for 4 years, after which it will need to be renewed.
- Issuing a Certificate of Sponsorship. This will cost £199 regardless of the size of the company.
In addition to the above the following is also payable for a Tier 2 visa.
- Immigration Health Surcharge – £400 a year (going up to £624) 01/10/2020
- Application fee outside the UK – Shortage (3 years or less): £464. Non-shortage (3 years or less) £610. Inside the UK (extending or switching). Shortage (3 years or less): £464. Non-shortage (3 years or less) £704.
- Biometric enrolment fee – £19.20
- UKVCAS appointment fee – £0-£210 (depends on location and time)
- Expedited processing (optional) – decision in 5 working days = £500, 24 hours = £80
Who Pays What?
The Immigration Skills Charge must be paid by the employer, but other costs can be split between employer and applicant. You might for instance decide that you are happy to pay for the application fee but ask the employee to pay for their own Immigration Health Surcharge. This is a matter to work out with your employee prior to applying.
What About Family Members?
Family members must also pay their own application fees and Immigration Health Surcharges, meaning these costs increase significantly for every additional applicant. You should ask how many family members your potential employee hopes to bring with them and reach an agreement on who will be responsible for the costs.
Case Study: Single Worker
Holly runs a small veterinary practice and is hoping to employ a new veterinary surgeon. One of her employees mentions she has a friend from university, Marcia, who is a Brazilian national and performed top of the class. Holly interviews Marcia and she is perfect for the role so Holly decides to sponsor her for 3 years. Marcia has no partner or children.
Veterinary Surgeon’s are considered a shortage occupation, and Holly’s business is a small family business. As such the cost will be:
- Sponsor License £536
- Certificate of Sponsorship – £199
- Immigration Skills Charge – £1092
- Immigration Health Surcharge – £1200
- Application Fee (shortage) £464
This totals £4027, which seems like a formidable amount for a small company, but is very much towards the lower end of the scale. As you can see with our next case study, once you start adding dependants or considering bigger companies, costs can quickly spiral.
Case Study: Family of 5
Garima runs a large company with branches all over the world which manufactures luxury cars. She wants to employ Jin, a Chinese national, as a project co-ordinator as he has been introduced to her by an employee of one of the company’s overseas branches. Jin accepts the job offer on the condition that his wife and 3 children are able to travel with him. Garima offers to sponsor him for 3 years.
Project Co-ordinator is not considered a shortage application and Garima’s company is a large multinational outfit so she will have to pay the higher fee for the sponsor license.
The costs will be:
- Sponsor License £1476
- Certificate of Sponsorship – £199
- Immigration Skills Charge (Large company) – £3000
- Immigration Health Surcharge x 5 – £6000
- Application Fee x 5 – £3,050
This totals £13,725 even without accounting for any additional fees relating to courier service, priority service, or even fees related with using an immigration firm. This is an amount which many employers will balk at being asked to pay. It is important to discuss with the potential employee exactly how much of the cost each party will take responsibility for paying (for instant perhaps the applicant pays the Immigration Health Surcharge, or all costs associated with their dependants). It might also be useful to work out some sort of repayment scheme with employees that don’t have the necessary savings at the time of application. This is particularly relevant where the potential employee is from a country with an unfavourable exchange rate and/or comparatively low earnings which may have made it hard for them to accrue the necessary savings.
If you are interested in employing non-EEA nationals to work for your business (or EEA nationals after 01/01/2021) and would like help with a sponsor license or the application process we can help. Give us a call on 01403 801 801 or email us at [email protected]