Self Sponsorship Visa UK Cost

Self-sponsorship is a practical pathway for entrepreneurs and professionals who want to live and work in the UK by establishing a UK company and using it to sponsor their own Skilled Worker visa. It is not a separate visa category under the Immigration Rules; rather, it is a lawful use of the existing sponsor licence and Skilled Worker framework where the applicant’s company becomes the licensed sponsor and employs the applicant in a qualifying role.

What this article is about:
This article explains the full cost picture for the UK self-sponsorship route. It covers the sponsor licence application and renewal fees, Skilled Worker visa charges, the Immigration Health Surcharge, the Immigration Skills Charge, and realistic ongoing expenses such as company setup, accountancy, and compliance support. It also sets expectations on business genuineness and Home Office compliance so readers can budget accurately and avoid surprises.
 

Section A: What is the UK Self-Sponsorship Visa?

The phrase “self-sponsorship visa” can be misleading, as there is no official immigration category under that name. Instead, it refers to a lawful way of using the Skilled Worker visa route. In this model, an individual establishes a UK company, applies for a sponsor licence, and then uses that company to sponsor their Skilled Worker visa. The applicant effectively becomes both the employer and the employee, provided all requirements are met.

The Skilled Worker visa, which replaced the Tier 2 (General) visa, requires applicants to meet the Immigration Rules on salary thresholds, English language ability, and the existence of a genuine job role. The distinction in self-sponsorship is that the company is controlled by the applicant, enabling them to create and fill a role within their own organisation. The Certificate of Sponsorship (CoS) is issued through the company’s sponsor licence.

To obtain a sponsor licence, the company must be a genuine trading entity with credible operations. The Home Office will not accept dormant or shell companies. Applicants must show evidence such as contracts, a business bank account, premises, and a plan for sustainable activity. The business must also appoint key personnel including an Authorising Officer, Key Contact, and Level 1 User. In some cases, the applicant may fill these roles, but the Home Office may require separation of duties or suitable alternative personnel depending on circumstances.

The licence itself is valid for four years and must be renewed to continue sponsoring workers. During its validity, the business is subject to compliance duties, record-keeping obligations, and the risk of Home Office audits. If the business fails to comply, the licence can be suspended or revoked, directly affecting the individual’s immigration status.

Self-sponsorship is particularly attractive for entrepreneurs, professionals, and business owners who want to build or expand a UK presence. It offers independence from third-party employers, but requires significant responsibility. Failure to maintain the company’s compliance will result in immigration risk for the sponsored individual.

**Section Summary**
Self-sponsorship is not an official visa type but a recognised use of the Skilled Worker visa where the applicant’s own company becomes the licensed sponsor. It demands genuine business activity, robust compliance, and ongoing responsibility. When managed correctly, it provides applicants with control over their UK immigration and business future.
 

Section B: Sponsor Licence Costs for Self-Sponsorship

Applying for a sponsor licence is the first and most significant financial step in the self-sponsorship process. Without it, a UK company cannot issue Certificates of Sponsorship or employ Skilled Workers. The costs of obtaining and maintaining a licence are central to the overall budget.

1. Application Fee

The Home Office charges an application fee that depends on the size and type of business. Small or charitable sponsors pay £536, while medium or large sponsors pay £1,476. A company qualifies as “small” under the Companies Act 2006 if it meets at least two of the following: turnover of not more than £10.2 million, balance sheet total of not more than £5.1 million, and not more than 50 employees. For most self-sponsorship applicants using a small company, the lower fee applies. The fee is non-refundable, even if the application is refused. The licence lasts for four years and must be renewed to maintain sponsorship rights.

2. Legal & Advisory Costs

Although applicants can prepare the application themselves, many choose to engage legal or professional advisers. Specialist advisers assist with drafting the application, preparing supporting documents, and ensuring the business meets compliance requirements. Legal costs vary but can run into several thousands of pounds. While this is an additional expense, professional support reduces the risk of refusal and helps put robust systems in place from the start.

3. Compliance Costs

Securing the licence is only the beginning. The Home Office expects sponsors to maintain HR systems capable of monitoring attendance, keeping records, and reporting changes. For self-sponsoring companies, this may involve investing in compliance tools or outsourcing HR functions. The company must also appoint key personnel – Authorising Officer, Key Contact, and Level 1 User – who manage the Sponsorship Management System and ensure duties are met.

In some cases, the applicant may take on these roles, but the Home Office can require separation of responsibilities. Where external professionals are engaged, further costs may arise. Non-compliance can lead to suspension or revocation of the licence, directly threatening the individual’s visa status.

**Section Summary**
Sponsor licence costs include the Home Office fee, legal or advisory charges, and the expense of establishing and maintaining compliance systems. With the licence valid for four years and subject to renewal, applicants should plan for both upfront and ongoing costs to safeguard their immigration status.
 

Section C: Skilled Worker Visa Costs for the Sponsored Individual

Once a sponsor licence has been secured, the next step is to apply for the Skilled Worker visa. This stage carries its own set of fees, which must be paid by the applicant and in some cases by the sponsoring company. The financial commitment is significant and should be factored into any self-sponsorship plan.

1. Visa Application Fee

The Skilled Worker visa application fee depends on the length of the visa and whether the applicant is applying inside or outside the UK. As of 2025, the current fees are:
– £719 for up to 3 years (outside the UK)
– £1,420 for more than 3 years (outside the UK)
– £827 for up to 3 years (inside the UK)
– £1,636 for more than 3 years (inside the UK)

These fees apply per applicant. Each dependant (partner or child under 18) must also pay the same fee. Since April 2024, the previous shortage occupation discount no longer applies, meaning all Skilled Worker applications are charged at the standard rates.

2. Immigration Health Surcharge (IHS)

All Skilled Worker visa applicants must pay the Immigration Health Surcharge to access NHS services. The rate is £1,035 per year and is payable upfront for the duration of the visa. For example, a five-year visa requires £5,175 in IHS charges. Each dependant must pay the same amount, so costs multiply quickly for families.

3. Certificate of Sponsorship (CoS) Fee

The sponsoring company must assign a Certificate of Sponsorship to the applicant. The fee is £239 per certificate. This cost recurs when a new CoS is required, such as at visa extension or if the applicant changes roles within the company.

4. Immigration Skills Charge (ISC)

The Immigration Skills Charge is paid by the sponsoring company, not the visa applicant. It is levied for each year of sponsorship. Current rates are £364 per year for small or charitable sponsors and £1,000 per year for medium or large sponsors. Some exemptions apply, such as for Health and Care Worker visas or for Graduate visa switchers, but most Skilled Worker roles attract the full charge.

For example, a five-year Skilled Worker visa sponsored by a small company would require £1,820 in ISC payments, while a medium or large company would be liable for £5,000.

**Section Summary**
The Skilled Worker visa stage brings major costs: visa fees, the Immigration Health Surcharge, Certificate of Sponsorship charges, and the Immigration Skills Charge. With dependants and multi-year sponsorships, the total outlay can reach tens of thousands of pounds. These costs must be carefully budgeted to avoid jeopardising the self-sponsorship route.
 

Section D: Ongoing & Hidden Costs

Beyond the initial licence and visa fees, self-sponsorship brings a range of ongoing and less obvious expenses. These can be substantial over time and should be built into financial planning from the start.

1. Business Setup Costs

A company used for self-sponsorship must be genuine and actively trading. The Home Office will not approve dormant or shell companies. Applicants must show evidence such as incorporation at Companies House, a business bank account, contracts, and premises. Costs can include accountancy services, tax registration, and office space. While some entrepreneurs use serviced or virtual offices, proof of genuine business activity is essential. These setup costs vary depending on the scale of the business.

2. Renewal & Extension Fees

The sponsor licence is valid for four years and must be renewed to continue employing Skilled Workers. Renewal requires another Home Office fee. Skilled Worker visas are also time-limited, typically granted for two to five years. Extensions involve repeating the main costs: visa application fees, Immigration Health Surcharge, Certificate of Sponsorship, and the Immigration Skills Charge. For applicants with dependants, the financial burden of renewals is considerable. An important mitigation is that after five years of continuous residence, Skilled Worker visa holders may apply for indefinite leave to remain (ILR). Securing ILR avoids the need for further visa renewals and the associated costs.

3. Legal & Compliance Support

Even once established, a self-sponsoring company must maintain compliance with immigration and employment laws. Many businesses use legal advisers or compliance specialists to ensure reporting duties are met, audits are managed, and renewals are handled correctly. These professional services come at a cost, but they reduce the risk of licence suspension or revocation. Since the individual’s immigration status depends on the company’s licence, maintaining compliance is an unavoidable priority.

**Section Summary**
Ongoing and hidden costs include company setup and operation, sponsor licence renewals, visa extensions, and professional compliance support. With ILR available after five years, the long-term financial burden can be reduced, but until then applicants must be prepared for repeated costs and ongoing obligations.
 

FAQs

Is self-sponsorship cheaper than other visa routes?

Not in most cases. While self-sponsorship avoids reliance on an existing UK employer, it introduces costs such as sponsor licence fees, Immigration Skills Charge payments, and compliance expenses. Compared with routes like the Innovator Founder visa, self-sponsorship often requires higher upfront spending. However, for applicants who want to build a business in the UK, the independence and control it offers can make the route attractive.

Can I avoid the Immigration Skills Charge if I own the company?

No. The Immigration Skills Charge (ISC) is mandatory unless an exemption applies, and it must be paid even if the sponsor and the visa applicant are the same person. The Home Office uses the ISC to fund training for the UK workforce. Attempting to avoid it risks refusal of the visa or enforcement action against the sponsoring company.

What happens if my business fails during my visa period?

If the sponsoring company ceases trading or its licence is revoked, the Skilled Worker visa will usually be curtailed. The Home Office typically issues a 60-day curtailment notice (or less if the visa is due to expire sooner). During this period, the individual must either secure a new sponsor or make alternative arrangements to remain lawfully in the UK. If this is not possible, they will need to leave the UK.

Are dependants included in the same cost structure?

Dependants – a partner and children under 18 – can apply to join the main applicant, but they must each pay the visa application fee and the Immigration Health Surcharge in full. This means the overall cost for families can be significantly higher than for individual applicants.

How often must I renew my visa and licence?

A sponsor licence is valid for four years and must be renewed to maintain its status. Skilled Worker visas are granted for a set period, usually between two and five years. If indefinite leave to remain has not yet been secured, renewal applications must be made before the visa expires. Each renewal attracts the same core costs: visa fee, Immigration Health Surcharge, Certificate of Sponsorship, and Immigration Skills Charge.
 

Conclusion

The self-sponsorship route gives individuals the opportunity to live and work in the UK while maintaining control of their own business. It is not a separate visa category but a lawful use of the Skilled Worker route, requiring the applicant to set up a UK company, obtain a sponsor licence, and employ themselves in a qualifying role.

The financial commitments are substantial. Applicants must cover sponsor licence fees, Skilled Worker visa charges, the Immigration Health Surcharge, and the Immigration Skills Charge. Alongside these headline costs are business setup expenses, accountancy support, compliance systems, and legal advice. For applicants with dependants, the total outlay can be significant, particularly at the extension stage.

Despite the expense, self-sponsorship provides valuable independence. It enables individuals to establish and grow a UK-based business, gain direct control of their immigration status, and progress towards settlement. After five years, Skilled Worker visa holders may apply for indefinite leave to remain, which removes the need for further visa renewals and reduces long-term costs.

Careful planning, realistic budgeting, and compliance with Home Office requirements are vital. For those prepared to invest in both their business and immigration journey, self-sponsorship offers a flexible and powerful route into the UK.
 

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