Applying for a sponsor licence is the first step for any UK business that intends to employ overseas nationals under the Skilled Worker or Temporary Worker visa routes. The licence acts as formal permission from the Home Office to sponsor eligible workers, but securing it requires more than just meeting compliance duties. Employers must also pay the correct sponsor licence application fee at the point of applying.
What this article is about:
This guide explains the current sponsor licence application fees, including the different rates for large, medium, small, and charitable organisations. It also examines the fees for Skilled Worker, Global Business Mobility, and Temporary Worker routes, alongside renewal charges and additional ongoing costs such as the Immigration Skills Charge. The aim is to help employers understand the financial commitments of becoming a licensed sponsor and to plan accordingly.
The sponsor licence application fee is a statutory charge set by the Home Office under the Immigration and Nationality (Fees) Regulations. The amount payable depends on the category of licence being applied for and the size or charitable status of the organisation. Paying the wrong fee, or failing to pay, can result in the application being treated as invalid. The Home Office will not consider the application until the correct fee has been received, which in turn delays recruitment plans. Employers therefore need to ensure they pay the correct fee first time.
Beyond the initial fee, organisations should also account for renewal costs and other related charges that arise when sponsoring migrant workers. Understanding these fees in advance allows businesses to budget properly and to weigh the cost of sponsorship against their recruitment needs.
Section B: Sponsor Licence Application Fees 2025
The sponsor licence fee varies depending on the type of licence applied for and whether the organisation is classed as small or charitable under UK company law. The Home Office reviews fees regularly, meaning employers must always check the latest rates before submitting an application.
1. Skilled Worker and Global Business Mobility routes
For the Skilled Worker and Global Business Mobility routes, the application fee differs based on the size of the organisation:
- Small or charitable sponsors: £536
- Medium or large sponsors: £1,476
The fee is the same regardless of whether the employer applies for only one of these routes or multiple subcategories within them. The Home Office does not charge separately per route if they are included in a single application.
Example:
A small charity applying for a Skilled Worker licence will pay £536, whereas a large company applying for both Skilled Worker and Global Business Mobility categories will pay £1,476.
2. Temporary Worker routes
Employers seeking to sponsor individuals under Temporary Worker routes pay a reduced application fee compared with the Skilled Worker and Global Business Mobility categories. The application fee is set at:
- All organisations (regardless of size): £536
This flat rate applies whether the organisation is sponsoring workers under the charity worker, seasonal worker, creative worker, or Government Authorised Exchange categories.
3. Fee exemptions and reduced rates
Certain organisations qualify for reduced or exempted fees. The Home Office applies small company and charitable sponsor rules, as defined under the Companies Act 2006:
- A small company is one that meets at least two of the following criteria:
– Annual turnover of £10.2 million or less
– Balance sheet total of £5.1 million or less
– 50 employees or fewer - A charitable sponsor is an organisation registered as a charity in the UK or equivalent in another jurisdiction.
These rules ensure that smaller organisations and charities are not disadvantaged when accessing skilled international labour markets. Importantly, fee exemptions are rare, and most employers will be required to pay at least the reduced rate.
Section B Summary
The 2025 sponsor licence application fees stand at £536 for small or charitable sponsors applying under the Skilled Worker or Temporary Worker categories, and £1,476 for medium or large sponsors under the Skilled Worker or Global Business Mobility routes. Temporary Worker licence applications attract a flat fee of £536 for all organisations. Employers must verify their company size and charitable status carefully to ensure the correct fee is paid.
Section C: Renewal and Additional Costs
Paying the sponsor licence application fee is only the beginning of the financial responsibilities for employers. Sponsorship carries ongoing costs, both statutory and operational, which businesses must anticipate when deciding to hire migrant workers.
1. Sponsor licence renewal fee
A sponsor licence is valid for four years. To continue sponsoring workers beyond this period, the organisation must apply for renewal before the licence expires. The renewal fees mirror the initial application costs:
- Small or charitable sponsors: £536
- Medium or large sponsors: £1,476
Failure to pay the renewal fee and complete the renewal application on time will result in the licence expiring. Once expired, the employer can no longer lawfully sponsor overseas workers. Any existing sponsored workers may also be affected, as their visas rely on a valid sponsor licence. In practice, the Home Office may curtail worker visas if a licence is allowed to expire without renewal.
2. Immigration Skills Charge (ISC)
Separate from the application and renewal fees, employers hiring under the Skilled Worker or Global Business Mobility routes are usually required to pay the Immigration Skills Charge. This is a levy imposed to encourage businesses to train the resident workforce and is payable when assigning a Certificate of Sponsorship (CoS) to a migrant worker.
The ISC is charged at:
- Small or charitable sponsors: £364 for the first 12 months, plus £182 for each additional six months
- Medium or large sponsors: £1,000 for the first 12 months, plus £500 for each additional six months
Some exemptions apply, such as workers under the Health and Care visa route and certain Global Business Mobility categories.
3. Other compliance costs
Employers should also account for indirect but unavoidable costs of sponsorship, including:
- Certificates of Sponsorship (CoS): £239 per Skilled Worker or GBM CoS, £25 for Temporary Worker CoS
- HR system updates: Adjustments to monitoring and record-keeping processes to meet sponsor compliance duties
- Staff training: Ensuring key personnel understand sponsor responsibilities and SMS (Sponsor Management System) operation
- Legal or advisory fees: Where professional immigration support is used for applications, renewals, or compliance audits
While these costs are not Home Office fees, they are a necessary part of ensuring compliance and reducing the risk of penalties or revocation.
Section C Summary
Renewing a sponsor licence incurs the same fee as the original application and must be paid every four years. Employers must also budget for the Immigration Skills Charge, CoS fees, and wider compliance-related costs. Collectively, these expenses form a significant ongoing financial commitment beyond the initial licence application.
Section D: Practical Considerations for Employers
Understanding the application and renewal fees is only part of the picture. Employers must also assess how these costs fit within their wider recruitment strategy and ensure they avoid common mistakes that can undermine sponsorship plans.
1. Budgeting for sponsorship
Employers should treat sponsorship costs as an ongoing investment rather than a one-off expense. The combined outlay of application fees, renewal costs, the Immigration Skills Charge, and CoS allocations can be substantial over time.
For smaller companies and charities, it is crucial to assess whether the organisation meets the Companies Act criteria for reduced fees, as this can significantly lower costs. For larger employers, the financial impact may be higher, but the ability to access skilled labour markets can outweigh the expense. Sound budgeting ensures businesses can sustain sponsorship without unexpected financial strain.
2. Common mistakes and consequences
One of the most frequent errors is paying the wrong application fee. If the Home Office receives an incorrect payment, the application will not be processed and will be treated as invalid. This wastes both time and money, delaying recruitment and potentially losing overseas candidates.
Another common issue is failing to budget for renewal fees or overlooking the Immigration Skills Charge when planning recruitment costs. Employers who underestimate these charges may face financial pressure later, particularly when sponsoring multiple workers at once.
3. Cost vs compliance value
While sponsor licence fees can be substantial, they should be viewed alongside the value of compliance. Holding a sponsor licence not only enables recruitment of overseas workers but also demonstrates a commitment to maintaining lawful and fair employment practices. Investing in robust HR systems and staff training reduces the risk of Home Office enforcement action, such as licence suspension or revocation.
For many employers, the benefits of being able to fill skill shortages outweigh the financial costs. By factoring in both the application fee and ongoing charges, businesses can achieve a realistic assessment of whether sponsorship aligns with their operational needs.
Section D Summary
Employers must budget carefully for sponsor licence application, renewal, and associated costs. Mistakes such as paying the wrong fee or overlooking additional charges can lead to wasted time and compliance risks. Ultimately, sponsorship fees should be balanced against the value of maintaining compliance and accessing skilled international labour.
FAQs
How much is the sponsor licence fee in 2025?
For Skilled Worker and Global Business Mobility licences, the fee is £536 for small or charitable sponsors and £1,476 for medium or large sponsors. For Temporary Worker licences, the fee is £536 for all organisations regardless of size.
Do charities pay the same sponsor licence fee as companies?
No. Charitable organisations qualify for the reduced rate of £536, even when applying for a Skilled Worker or Global Business Mobility licence. Medium and large companies must pay the higher fee of £1,476.
Is the Immigration Skills Charge part of the sponsor licence application fee?
No. The Immigration Skills Charge is separate. It is payable when assigning a Certificate of Sponsorship to a worker under the Skilled Worker or Global Business Mobility routes. The charge is levied in addition to the application fee.
How often must the sponsor licence be renewed and at what cost?
A sponsor licence must be renewed every four years. Renewal costs are the same as the initial application: £536 for small or charitable sponsors and £1,476 for medium or large sponsors.
What happens if I pay the wrong fee when applying?
If the wrong fee is paid, the Home Office will treat the application as invalid. The application will not be processed, and the employer will have to resubmit with the correct fee and supporting documents. This can delay recruitment and disrupt hiring plans.
Conclusion
Applying for a UK sponsor licence involves more than demonstrating eligibility and compliance systems. Employers must also pay the correct application fee, which varies depending on licence type and whether the organisation qualifies as small, medium, large, or charitable.
For 2025, the standard sponsor licence application fee stands at £536 for small or charitable organisations and £1,476 for medium or large organisations when applying under the Skilled Worker or Global Business Mobility routes. Temporary Worker licences carry a flat fee of £536 for all applicants. These fees are mirrored at renewal, which occurs every four years.
Employers must also consider additional costs, including the Immigration Skills Charge, Certificates of Sponsorship, and the indirect expense of ensuring HR systems meet sponsor compliance requirements. Failure to account for these charges can result in financial strain or compliance breaches.
Ultimately, the sponsor licence application fee is a statutory requirement that cannot be negotiated. It should be viewed as part of the wider investment in maintaining the ability to lawfully employ skilled overseas workers. Businesses that budget effectively and plan for both the application fee and ongoing sponsorship costs will be better placed to sustain compliance and benefit from access to global talent.
Glossary
| Term | Definition |
|---|---|
| Sponsor Licence | Permission granted by the Home Office allowing an organisation to employ overseas nationals under specific visa routes. |
| Immigration Skills Charge (ISC) | A levy payable by employers when assigning a Certificate of Sponsorship under Skilled Worker and some Global Business Mobility categories. |
| Certificate of Sponsorship (CoS) | A unique electronic record assigned by a licensed sponsor to an overseas worker, required for a visa application. |
| Skilled Worker route | A visa category allowing overseas nationals to work in the UK in eligible skilled jobs with licensed sponsors. |
| Temporary Worker route | A visa category allowing overseas nationals to work in the UK for a limited period under schemes such as charity, creative, or seasonal work. |
Useful Links
| Resource | Link |
|---|---|
| GOV.UK – Sponsor licence application fees | Visit |
| GOV.UK – Workers and Temporary Workers: guidance for sponsors | Visit |
| DavidsonMorris – Sponsor Licence Application Fees Guide | Visit |
