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What is the Immigration Skills Charge (ISC)?
For businesses seeking to recruit talent from abroad, understanding the ins and outs of immigration applications is crucial. One key aspect of the UK's immigration policy that employers should grasp is the Immigration Skills Charge (ISC), implemented in April 2017.
The ISC mandates a financial fee on UK employers hiring non-UK nationals through specific visa routes. Businesses need to grasp when this charge applies to their hiring strategies.
The Immigration Skills Charge is a fee imposed on UK employers sponsoring non-UK nationals under the Skilled Worker (previously Tier 2 (General)) and Global Business Mobility (GBM, previously Tier 2 Intra-Company Transfer/ICT) visa routes. This change was introduced to prompt employers to invest in training the local workforce and reduce reliance on migrant labour.
The funds raised from the Immigration Skills Charge (ISC) are paid into the Department of Education's skills budget, aiming to facilitate employers in finding the talent they require within the UK more easily.
The ISC applies to UK employers sponsoring non-UK workers through specific visa pathways. Payment varies based on business size and worker's duration. Small businesses and charities may pay a reduced rate.
Eligibility criteria apply for lower ISC payments. Failure to pay can result in visa application issues. ISC has applied to Skilled Workers and Global Business Mobility migrants since the 6th of April 2017. Understanding and managing ISC is crucial for businesses recruiting internationally.
ISC exemptions aim to ease financial burdens and support critical skills flow into the UK. They recognise the unique contributions of workers, such as PhD-level occupations and students switching to a Skilled Worker visa.
In certain circumstances, a business may receive a full or partial refund for the ISC relating to the sponsorship of an overseas worker. It can take 90 days for the Home Office to process the refund. In the following situations, you may qualify for a refund:
- The CoS is not used to support an application for entry clearance or permission to remain
- The company has informed the Home Office that the worker never commenced employment
- The ISC payment was made in error
- The worker’s visa application was refused or withdrawn
- A worker is granted less time on their visa than they have been sponsored for
- The worker leaves the employment with the sponsor before the end date on their Certificate of Sponsorship
A refund will not be issued where:
- The worker changes roles but remains employed with the sponsor
To find out more details about exemptions which might apply to your employees, contact us today at 01403 80181 or via email at [email protected]