Immigration Skills Charge: What UK Employers Need to Know in 2026

The Immigration Skills Charge is an important cost for UK employers who sponsor overseas workers. If your business holds, or is planning to apply for, a sponsor licence, it is essential to understand when this charge applies, how much it costs and what responsibilities you have as an employer.

The rules around sponsorship have changed significantly since the Immigration Skills Charge was first introduced in April 2017. Today, the charge is mainly relevant to employers sponsoring workers under the Skilled Worker route or the Global Business Mobility Senior or Specialist Worker route. It is paid by the sponsoring employer when assigning a Certificate of Sponsorship, not by the worker.

At Arlingsworth Solicitors, our immigration team advises businesses on sponsor licence applications, compliance duties and the legal requirements involved in hiring skilled workers from outside the UK.

What is the Immigration Skills Charge?

The Immigration Skills Charge is a government charge paid by UK employers when sponsoring certain overseas workers. It was introduced to encourage UK businesses to invest in local training while still allowing employers to recruit international talent where needed.

The charge is separate from other immigration costs, such as the sponsor licence application fee, Certificate of Sponsorship fee, visa application fee and Immigration Health Surcharge. For employers, this means the total cost of sponsoring a worker can be higher than expected if the Immigration Skills Charge is not properly budgeted for.

When does the Immigration Skills Charge apply?

The Immigration Skills Charge usually applies when an employer assigns a Certificate of Sponsorship to a worker applying for a Skilled Worker visa or a Senior or Specialist Worker visa.

You may need to pay the charge if the worker is applying from outside the UK to work in the UK for six months or more, or if they are applying from inside the UK for any length of time. GOV.UK confirms that the charge is paid when the Certificate of Sponsorship is assigned and that employers must not ask the sponsored worker to pay it.

This is a key compliance point. If an employer passes the Immigration Skills Charge on to the worker, it may put the sponsor licence at risk.

How much is the Immigration Skills Charge in 2026?

The current Immigration Skills Charge depends on the size and type of the sponsoring organisation.

For small or charitable sponsors, the charge is £480 for the first 12 months and £240 for each additional six-month period. For medium or large sponsors, the charge is £1,320 for the first 12 months and £660 for each additional six-month period. GOV.UK also states that the full charge must be paid in one go when assigning the Certificate of Sponsorship.

For example, a five-year sponsorship could cost £2,400 for a small or charitable sponsor, or £6,600 for a medium or large sponsor. This does not include other sponsor licence or visa-related fees.

Who counts as a small or charitable sponsor?

A business is usually treated as a small sponsor if at least two of the following apply:

  • Annual turnover is £15 million or less
  • Total assets are worth £7.5 million or less
  • The organisation has 50 employees or fewer

Charitable sponsors may also qualify for the reduced Immigration Skills Charge rate, depending on their charitable status.

If you are unsure whether your organisation qualifies as a small, charitable, medium or large sponsor, it is worth checking before assigning a Certificate of Sponsorship. Paying the wrong amount can delay the worker’s visa application and create unnecessary compliance issues.

Are there any Immigration Skills Charge exemptions?

There are situations where the Immigration Skills Charge may not need to be paid. For example, exemptions may apply for certain science, research and academic occupation codes. GOV.UK also confirms that the charge is not payable for the worker’s dependants, such as their partner or children.

An exemption may also apply where a worker switches from a visa that allowed them to study into a Skilled Worker or Senior or Specialist Worker visa, provided the relevant conditions are met.

Because exemptions can be specific, employers should check the worker’s visa route, occupation code and immigration history before assuming the Immigration Skills Charge is payable.

Why does the Immigration Skills Charge matter for employers?

The Immigration Skills Charge matters because it affects both cost planning and sponsor compliance. For many businesses, especially those hiring multiple skilled workers, the charge can become a significant part of the recruitment budget.

Employers should consider the charge before issuing a Certificate of Sponsorship, especially if they are sponsoring a worker for several years. The longer the sponsorship period, the higher the cost.

It is also important to keep proper records. Sponsor licence holders must be able to show that they are meeting their duties, including paying the correct fees and not passing prohibited costs on to workers.

How Arlingsworth can help with business immigration

Arlingsworth Solicitors advises employers on sponsor licence applications, skilled worker sponsorship, business immigration and compliance. Our Business Immigration service includes support with becoming a licensed sponsor, recruiting skilled workers internationally and managing sponsor duties.

If your business is planning to sponsor an overseas worker, we can help you understand whether the Immigration Skills Charge applies, what costs to expect and how to remain compliant with Home Office requirements.

Speak to Arlingsworth’s immigration solicitors

The Immigration Skills Charge is only one part of the sponsorship process, but it is an important one. Employers should understand the charge before making recruitment decisions, assigning a Certificate of Sponsorship or submitting a Skilled Worker visa application.

For advice on sponsor licences, Skilled Worker visas or business immigration compliance, contact Arlingsworth Solicitors today.

Call our Brighton office on 01273 696 962 or our London office on 0203 358 0058. Alternatively, contact us online to speak with our immigration team.

What is the Immigration Skills Charge?

The Immigration Skills Charge is a government fee paid by UK employers when they sponsor certain overseas workers. It usually applies when assigning a Certificate of Sponsorship for a Skilled Worker visa or Senior or Specialist Worker visa. Arlingsworth can help employers understand whether the charge applies before they begin the sponsorship process.

Who has to pay the Immigration Skills Charge?

The sponsoring employer is responsible for paying the Immigration Skills Charge. It should not be passed on to the sponsored worker. Arlingsworth can advise employers on sponsor licence duties, including which costs must legally remain the employer’s responsibility.

How much is the Immigration Skills Charge?

The amount depends on whether the sponsor is classed as a small, charitable, medium or large organisation. Small or charitable sponsors usually pay a reduced rate, while medium and large sponsors pay a higher rate. Arlingsworth can help businesses check their sponsor category and estimate the likely cost before assigning a Certificate of Sponsorship.

Does every sponsored worker require the Immigration Skills Charge?

No, not every sponsored worker will require the charge. Some exemptions may apply depending on the worker’s visa route, occupation code, study history or role. Arlingsworth can review the worker’s circumstances and help confirm whether an exemption may be available.

When is the Immigration Skills Charge paid?

The Immigration Skills Charge is normally paid when the employer assigns the Certificate of Sponsorship. This is an important stage in the sponsorship process, because mistakes can delay the worker’s visa application. Arlingsworth can guide employers through the Certificate of Sponsorship process and help reduce the risk of errors.

Can Arlingsworth help with sponsor licence applications?

Yes. Arlingsworth Solicitors can assist employers with sponsor licence applications, Skilled Worker sponsorship, Certificate of Sponsorship guidance and Home Office compliance duties. The team can help businesses understand the full cost of sponsoring overseas workers, including the Immigration Skills Charge.