Sponsor Licence Application Fee: 2026 UK Rates & Updates

The current cost of the Sponsor Licence fee is as follows:

Sponsor Licence Renewal Rules

In early 2024, the Home Office removed the need to renew sponsor licences.

This means businesses do not need to follow a renewal or extension process as long are they continue to meet the requirements of being a sponsor licence holder.

The type of organisation is decided using a number of factors sent by the UK Immigration Services. In order to qualify for the reduced sponsor licence application fee then an applicant must meet at least two of the following three conditions:

• Have an annual turnover of £10.2 million or less
• Total assets worth £5.1 million or less
• Have less than 50 employees

Any companies or organisations that do not meet these requirements will be classed as a medium or large sponsor rather than a small or charitable sponsor and therefore will need to pay the higher charge.

Sponsors must account for the Immigration Skills Charge (ISC), an additional compulsory fee that sponsors must pay when assigning a Defined Certificate of Sponsorship (CoS) for worker or international sportsperson visa applications. This charge applies on top of the standard CoS fee and is calculated based on the sponsor’s size and the duration of employment.

For large sponsors (businesses with an annual turnover of over £15 million or more than 50 employees), the ISC costs £1,000 for the first year of sponsorship.

Each subsequent six-month extension period requires an additional payment of £500.

Small or charitable sponsors benefit from reduced rates of £364 for the first year and £182 for each six-month extension period.

The Immigration Skills Charge (ISC) is calculated proportionally for employment periods shorter than six months and must be paid in full when assigning the Certificate of Sponsorship (CoS) via the Sponsor Management System. Unlike the CoS fee, it may be refunded if the visa is refused or withdrawn.

The ISC applies to all worker and international sportsperson visas (over 12 months) assigned from 6 April 2017. However, certain roles—like chemical scientists and higher education teaching staff—are exempt, and the charge does not apply to dependents.

However, the Immigration Skills Charge is not payable if an organisation is sponsoring someone to work in one of the following job roles:

• Sportsperson
• Chemical Scientist
• Clergy
• Research and Development Managers
• Higher Education Teaching Professionals
• Physical Scientists
• Social and Humanities Scientists

Another cost for an employer is the price of issuing a Certificate of Sponsorship. This charge varies according to the type of worker being sponsored. As a guide, the fees per certificate are as follows:

• Worker Licence- £525
• Temporary Worker Licence- £55
• International Sportsperson (more than 12 months)- £525
• International Sportsperson (less than 12 months)- £55

Fast-Tracked Sponsor Licence Fee

Employers who require expedited processing may opt for the Home Office’s priority service. This is crucial if you require a decision on your application quickly.

The Home Office offers a priority service for eligible sponsor licence applications, which allows employers to receive a decision within 10 working days instead of the standard processing time of 8 weeks or more. To use this service, sponsors are required to pay an additional £500 fee when submitting their application.

This accelerated processing option is only available for worker route licences, including the Skilled Worker and Senior or Specialist worker (Global Business Mobility) categories.

It is not possible to opt for priority processing when applying for the temporary worker licences, which cover the charity worker or seasonal worker routes. There is also no priority option if you are applying to upgrade an existing licence.

Paying for the fast-track service does not increase the chances of your application being approved. Sponsor Licence applications submitted via the priority route must still meet all
standard eligibility criteria, including compliance with the HR system, anti-fraud measures, and genuine vacancy requirements.

If your application is refused, the £500 fee is non-refundable. So you should consider consulting with an immigration expert before submitting your application to increase your chances of approval.

Optional Premium Sponsor Licence Services

There are dedicated support packages available for sponsors from the Home Office for those who require additional assistance beyond standard licence processing. These premium services do come at a significant cost, but provide unparalleled and dedicated caseworker support and expedited handling for complex sponsorship matters.

The SME+ Service, which costs £8,000, is suitable for small businesses and charitable organisations. The package includes priority processing of licence applications and changes, direct access to a named caseworker, and guidance on complex sponsorship scenarios. It also proves particularly valuable for first-time sponsors or those managing widespread recruitment of workers to fill multiple vacancies.

The Premium Customer Support tier costs £25,000 per annum for large corporations. This comprehensive service package provides 24/7 access to specialist immigration advisors, guaranteed response times within one working day for all queries, and proactive compliance monitoring. The package includes advanced notification of policy changes that may affect sponsored workers.

Both services are entirely optional and will not influence the decision-making process for licence applications or visa approvals. Sponsors should always carefully evaluate whether the benefits justify the substantial costs, especially when managing relatively straightforward sponsorship arrangements.

These premium offerings operate alongside, rather than replacing, standard sponsorship routes. Organisations may subscribe at any point during their sponsorship cycle, with fees payable in advance and non-refundable once services commence.

Costs for Upgrading or Adding Sponsor Licence Routes

Organisations that are currently seeking to expand their sponsorship capabilities should consider adding new visa routes to their existing licence so they can recruit workers on different visa routes.

The cost of upgrading a current Sponsor Licence varies depending on your current licence and the type of worker you will sponsor.

The most common Sponsor Licence upgrade involves adding worker routes (such as Skilled Worker or Senior Specialist Worker) to an existing Temporary Worker licence.
For large business sponsors, this upgrade carries a fee of £1,071, which reflects the broader recruitment permissions being granted. Small or charitable sponsors benefit from a reduced rate of 0 for the same worker route addition.

Adding temporary worker routes (including charity worker or creative worker categories) to an existing worker licence typically incurs no additional charges. This difference in pricing reflects the Home Office’s structure of sponsorship permissions, where worker routes carry much greater administrative requirements and oversight.

All route additions are processed through the Sponsorship Management System (SMS), with fees payable at the time of application. The upgrade process usually takes 8-10 weeks for standard processing, although priority services may be available for urgent cases.

Ongoing Sponsor Licence Costs and Compliance Obligations

Maintaining a valid sponsor licence involves several recurring financial commitments that organisations must budget for beyond the initial application fees. The most substantial ongoing cost is the Immigration Skills Charge, payable each time a new worker is sponsored under the Skilled Worker or Senior/Specialist Worker routes. This charge varies annually per employee, depending on the sponsor’s size and the employment duration.

Sponsors must also account for Certificate of Sponsorship (CoS) fees for each worker assigned, ranging from £55 for Temporary Workers to £525 for long-term skilled positions. Optional priority processing services for urgent CoS assignments or licence modifications incur additional charges, typically several hundred pounds per request.

Operational compliance generates indirect costs through mandatory HR system maintenance, staff training, and potential Home Office compliance visit preparations. While there’s no direct fee for compliance audits, organisations often require significant internal resources or external legal support to meet documentation and reporting standards.

Critically, since April 2025, UK regulations strictly prohibit sponsors from recovering any sponsorship-related costs from workers. This ban includes licence application fees, CoS charges, and administrative expenses associated with the sponsorship process. Violations could risk a licence downgrade or revocation.

Recouping Immigration Fees from Sponsored Workers

Under current immigration rules, UK businesses must now cover all sponsorship costs themselves. This expressly prohibits employers from recovering certain immigration-related costs from sponsored workers.

Since April 2025, sponsors are prohibited from passing on any expenses associated with the sponsor license application, CoS fees, or any other costs to recruited workers.

This ban covers both direct and indirect cost recovery methods. Employers are not allowed to:

• Claim back any sponsorship fees directly from an employee’s wage
• Require upfront reimbursement agreements
• Impose salary reductions to offset visa costs
• Charge for related administrative expenses

These requirements affect all visa categories equally, including Skilled Worker, Senior/Specialist Worker, and Temporary Worker routes. Limited exceptions exist only for government-mandated fees that employees would incur regardless of sponsorship, such as the Immigration Health Surcharge (ILS) or other associated application fees.

Failure to adhere to these rules can carry serious consequences, including:

• Sponsor licence downgrading (B-rating)
• Suspensions of sponsorship privileges
• Potential licence revocation for repeated violations

Refunds and Fee Adjustments for Sponsor Licences

The refund policy for sponsorship fees is very tight, and refunds are granted only in certain cases. If processing of the licence or CoSs has begun, then it is unlikely a refund will be issued.

However, there are some exceptions to this, and it is at the discretion of the Home Office to decide whether to issue a refund.

The primary circumstances where partial or full refunds may be granted to include:

• Overpayments – When duplicate payments occur or incorrect fee amounts are submitted due to Home Office system errors
• Application withdrawals – When sponsors formally withdraw applications before the Home Office begins substantive evaluation.
• Service failures – If paid priority services are not delivered within guaranteed timeframes through no fault of the applicant.
• Administrative errors – In cases where the Home Office has incorrectly processed payments or application fees.

Any refund requests must be submitted in writing to the Home Office alongside supporting evidence, such as payment receipts and correspondence demonstrating eligibility.

Processing typically takes 6-8 weeks, and approved refunds are returned via the original payment method. Notably, refused applications do not qualify for refunds unless they were caused by a verifiable Home Office error.

London Immigration Lawyers have a proven track record of helping clients with a broad range of immigration queries as well as helping employers recruit workers from overseas.

Whether you need help with applying for a new Sponsor Licence, or if you need help renewing your current licence, we are here to help.

If you require assistance with your Sponsor Licence application, get in touch with our team today for further guidance.