Skilled Workers Visa – how much does it really cost?

Helping UK companies with Overseas Employee Sponsorship Licences

As I’m sure you know, free movement of workers between the EU and the UK has ended and we now have a new immigration system. This system requires both the UK company that will employ the worker and the EU worker to follow a complex and expensive process. We have written about this a few times. Most recently we described the process in our blog How to hire overseas workers post Brexit. If you type ‘Visa’ into the search box above you can see some other articles. In this article, I focus on the costs involved in this process, which are high.

Applying for a Sponsor Licence – an expensive process

From a cost perspective there are two things to consider the cost to the company and the cost to the worker. That said, often the company will need to increase the worker’s salary to cover the costs, so often all the costs fall on the company.

Cost to the company

One of the most costly parts of the process is the application for a Sponsor Licence, which, for small companies, currently stands at:

  • £536 to apply for the Sponsor Licence
  • (For non-EU workers) a fee of £199 for the Certificate of Sponsorship
  • £364 per worker per year Immigration Skills Charge. This is a levy that contributes towards addressing the skills gap in the UK economy.

This means that to employ a worker from outside the EU for 5 years costs the employer – £536 + £199 + (5 x £364) = £2,555. You can read more about the cost to the company here.

Cost to the worker

Basically there are two more fees that need to be paid by the worker – the Immigration Health Surcharge and the Application Fee.

Immigration Health Surcharge

The Healthcare Surcharge is a cost, which is usually paid by the overseas employee as part of their application process. However, many employers will cover this through an increase in salary. For workers aged 18 or over, the charge is £624 per annum, with a lower charge for students or short-term workers. You can read about the Immigration Surcharge here.

Application Fee

There’s also an application fee. For a new visa the standard fee ranges between £610 and £1,408. Usually, its £610 for a 3 year visa and £1,220 if it is more than 3 years. The fees are higher if you are extending a visa. You can read about the application fee here.

Helping UK companies with Overseas Employee Sponsorship Licences

We can introduce you to one of our legal partners that can help you apply for a Sponsorship Licence.

Find out more. Get in touch, and remember  – we’re here to help.

Helping UK companies with Overseas Employee Sponsorship […]

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