For UK businesses looking to recruit skilled workers from overseas, the Immigration Skills Charge (ISC) is one of the most significant upfront costs to plan for. It is a mandatory levy that sponsoring employers must pay at the point of assigning a Certificate of Sponsorship (CoS) to a worker applying for a Skilled Worker visa or a Senior or Specialist Worker visa under the Global Business Mobility route.
The amount payable varies depending on the size of the sponsoring organisation and the length of the proposed sponsorship. This guide explains how the ISC works in practice, what rates currently apply, which categories of sponsor or worker may be exempt, and what steps sponsors should take to remain compliant.
Determining Sponsor Size for ISC Purposes
Before calculating the Immigration Skills Charge, sponsors must first establish which rate applies to them. The charge is structured around two categories of sponsor, and the applicable rate depends on the size of the sponsoring organisation.
Small or Charitable Sponsor
A sponsor qualifies as small or charitable if it meets one of the following criteria:
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The sponsor is a registered charity
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The sponsor has fewer than 50 employees
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The sponsor has an annual turnover of less than £10.2 million
Medium or Large Sponsor
A sponsor that does not meet any of the above criteria is classified as medium or large and must pay the higher ISC rate.
Notifying UKVI of Small or Charitable Status
To benefit from the reduced ISC rate, sponsors must notify UK Visas and Immigration (UKVI) of their small or charitable status through the Sponsorship Management System (SMS) before assigning the Certificate of Sponsorship.
If notification is made after the certificate has already been assigned, the sponsor may be entitled to a refund of the overpayment, but this requires contacting UKVI and may result in administrative delays.
Current Immigration Skills Charge Rates
As at the current date, the Immigration Skills Charge rates remain those introduced on 16 December 2025, which are as follows:
These ISC rates represent a 32% increase on the previous figures. The rate for small or charitable sponsors rose from £364 to £480, while the rate for medium or large sponsors increased from £1,000 to £1,320 for the first twelve months.
Examples
Example 1: Medium-sized sponsor, 3-year sponsorship
Example 2: Small sponsor, 2-year sponsorship
Note: These costs are in addition to the Certificate of Sponsorship assignment fee, the Immigration Health Surcharge (paid by the worker), and visa application fees.
When the Immigration Skills Charge Applies
The Immigration Skills Charge arises when a sponsor assigns a Certificate of Sponsorship to a worker under the Skilled Worker route or the Global Business Mobility Senior or Specialist Worker route, and the worker is:
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Applying from outside the UK to work in the UK for six months or more, or
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Applying from inside the UK for any length of time
It is important to note that the ISC is a liability of the sponsoring employer, not the worker. Under no circumstances should a sponsored worker be asked to pay or contribute towards this charge.
Requiring or allowing a worker to pay the Immigration Skills Charge is a serious compliance breach and may result in revocation of the sponsor licence, as the legal obligation to pay the charge rests firmly with the sponsoring employer. Sponsors should review their internal processes and any third-party recruitment arrangements to ensure this requirement is clearly reflected.
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Exemptions from the Immigration Skills Charge
In certain circumstances, the ISC does not apply. Sponsors should check whether an exemption is available before incurring the charge, as the savings can be substantial.
Occupation Code Exemptions
The Immigration Skills Charge is not payable when the worker is being sponsored in one of the following research and academic occupation codes:
These exemptions reflect the government’s recognition of the importance of research and academic talent to the UK’s scientific and educational sectors. Universities, research institutions, and employers sponsoring workers in these roles benefit from significant cost savings.
Switch from Student Visa
Where a worker switches into the Skilled Worker route or the Senior or Specialist Worker route from a visa that permitted study such as the student route or Graduate route the ISC is not payable on that initial switch application. This exemption also continues to apply to any later extension applications made under that same sponsored work route.
It is important to note that this exemption applies only to the first grant of a Skilled Worker visa following study in the UK. If the worker later changes employer and requires a new Certificate of Sponsorship from a different sponsor, that new sponsor will be required to pay the Immigration Skills Charge unless another exemption applies.
This policy supports the transition of international graduates into the UK workforce and helps retain talent that has already invested in UK education.
Global Business Mobility Exemption
It should first be noted that the ISC applies to the Senior or Specialist Worker route. However, apart from that route, it does not apply to the other routes under the Global Business Mobility category, such as the Graduate Trainee route, the UK Expansion Worker route, the Service Supplier route and the Secondment Worker route.
Within the Senior or Specialist Worker route specifically, a further targeted exemption applies where all the following conditions are met:
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The worker was assigned a Certificate of Sponsorship on or after 1 January 2023
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The worker is a national of an EU country or holds a Latvian non-citizen’s passport
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The worker normally works in the EU for the sponsor’s EU business but has been temporarily transferred to work in the UK
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The end date of the temporary transfer, as specified on the Certificate of Sponsorship, is no more than 36 months after the start date
This Immigration Skills Charge exemption reflects the UK’s ongoing relationship with the EU following Brexit and provides relief for intra-company transfers involving EU nationals on temporary assignment.
Payment Process for Immigration Skills Charge
The Immigration Skills Charge is paid through the Sponsorship Management System at the point the sponsor assigns a Certificate of Sponsorship. Payment must be made in full at the time of assignment, and the charge is calculated based on the sponsorship period specified on the certificate.
The sponsorship period runs from the date specified on the Certificate of Sponsorship, and sponsors are advised to confirm the accepted payment methods available through the SMS at the time of submission, as these may be updated by UKVI from time to time.
Certificate of Sponsorship Validity after ISC Payment
Once the ISC is paid and the Certificate of Sponsorship is assigned, the worker typically has three months to submit their visa application using that certificate. If the certificate expires without being used, the sponsor is entitled to a full refund of the ISC paid, provided the certificate was not used to make a visa application. If an application was made but subsequently refused or withdrawn, the refund position may differ, and sponsors should seek guidance on the specific circumstances.
For more information on ISC refunds, including eligibility and the refund process, please refer to our detailed article on:
ISC Practical Considerations for Sponsors
Budgeting for Immigration Skills Charge
Given the substantial cost of the ISC particularly for medium and large sponsors sponsoring multiple workers or for extended periods, it is important to factor this charge into recruitment and workforce planning budgets at an early stage. The cumulative cost across a workforce can be significant.
Sponsors should also be aware that the ISC is separate from other immigration-related costs, which may include:
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Certificate of Sponsorship assignment fee (the applicable fee varies depending on the route and should be confirmed at the time of assignment)
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Immigration Health Surcharge (payable by the worker; the rate varies depending on the applicant’s category and visa duration)
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Visa application fees (paid by the worker)
Record Keeping
Sponsors should maintain comprehensive records of all Immigration Skills Charge payments, including:
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Certificate of Sponsorship reference numbers
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Dates of assignment
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Amounts paid
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Payment receipts
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Sponsorship periods specified on each certificate
These records are important for internal financial management, audit purposes, and in the event that refund claims become necessary.
Compliance Implications
Failure to pay the Immigration Skills Charge when required, or requiring workers to pay the charge themselves, can result in serious compliance consequences, including:
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Revocation of the sponsor licence
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Downgrading of the sponsor’s rating
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Inability to assign further Certificates of Sponsorship
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Potential impact on current sponsored workers
Sponsors should ensure that their HR and immigration compliance teams are fully aware of ISC obligations and that appropriate internal controls are in place.
Conclusion
The Immigration Skills Charge is a substantial cost for many UK sponsors, and understanding when it applies, what rates are payable, and which exemptions may be available is essential for effective cost management and compliance. Keeping up to date with ISC rates including any future changes together with robust budgeting and record keeping, will help employers manage both their financial exposure and their sponsor licence obligations.
Clear internal processes, regular reviews of sponsored roles, and early consideration of ISC implications ahead of recruitment decisions can further support long-term workforce planning and financial control.
