For many UK sponsors, the Immigration Skills Charge (ISC) represents one of the more substantial upfront costs associated with recruiting overseas workers. What is less commonly appreciated is that the framework also includes a set of refund provisions that can return a meaningful amount to sponsors where a sponsorship does not proceed as planned or ends before the expected completion date.
This article sets out the circumstances in which a full or partial refund of the ISC may be available, when no Immigration Skills Charge refund can be claimed, how UK Visas and Immigration (UKVI) processes repayments, and what sponsors should do if a refund is delayed. Understanding these provisions is an important part of effective cost management and sponsor licence compliance.
Brief Overview of the Immigration Skills Charge
The Immigration Skills Charge is a mandatory levy imposed on sponsors when they assign a Certificate of Sponsorship (CoS) to a worker applying for either a Skilled Worker visa or a Senior or Specialist Worker visa under the Global Business Mobility route. It must be paid upfront at the time the CoS is assigned and covers the full sponsorship period specified on that certificate.
The current ISC rates, which have been in force since 16 December 2025, are as follows:
The ISC is payable by the sponsor only and must never be passed on to or paid by the sponsored worker.
For a comprehensive guide on the ISC, including when it applies, the full rates structure, exemptions, and payment requirements, please refer to our detailed article on:
Full Immigration Skills Charge Refunds
Sponsors are entitled to a full Immigration Skills Charge refunds in the following circumstances.
Visa Application Refused
If the worker’s visa application is refused by UKVI, the sponsor will receive a full refund of the ISC paid. This applies whether the refusal occurs at the initial decision stage or following an unsuccessful administrative review.
The refund is automatic and is typically processed within 90 days of the date on which the visa application is refused, or where an administrative review has been requested, within 90 days of the deadline for applying for administrative review (if no application is made), or within 90 days of the administrative review being dismissed.
Visa Application Withdrawn
Where a sponsored worker withdraws their visa application before a decision is made, the sponsor is entitled to a full refund of the ISC. The refund is typically processed within 90 days of the date the application is formally withdrawn.
This scenario may arise where a worker decides not to proceed with the employment offer or where circumstances change between the assignment of the CoS and the visa application decision.
Worker Does Not Commence Employment
Even if the visa application is successful and the worker is granted entry clearance or permission to stay, a full refund is available if the worker ultimately does not commence employment with the sponsor.
To claim this refund, the sponsor must notify UKVI through the Sponsorship Management System (SMS) that the worker did not start work. This is done by updating the worker’s record in the SMS to reflect that employment did not commence. The refund is processed within 90 days of this notification being submitted.
Certificate of Sponsorship Expires Unused
If the worker does not use the CoS to make a visa application before it expires (CoS are typically valid for three months from the date of assignment), the sponsor will receive a full refund. The refund is automatically processed within 90 days of the expiration date specified on the CoS.
ISC Paid in Error
In cases where the ISC was paid but was not actually required, for example, if the worker was eligible for an exemption but the charge was mistakenly paid, then in such case, a full refund will be issued upon notification to UKVI.
Partial Refunds of the ISC
Partial refunds of the ISC are available in specific circumstances where the sponsorship period is reduced or where an overpayment has occurred.
Shorter Visa Duration Granted
If UKVI grants the worker a visa for a shorter period than the sponsorship period specified on the CoS, the sponsor will receive a partial refund for the unused portion. For example, if a sponsor paid the ISC for a 3 year sponsorship period but the worker is only granted a two-year visa, the sponsor will receive a refund for the unused third year.
Worker Leaves Employment Early
When a sponsored worker leaves their employment before the end date stated on their CoS, the sponsor may be entitled to a partial refund for the unused sponsorship period. Sponsors must notify UKVI of the worker’s departure through the SMS within 28 days of the worker leaving, as failure to report promptly may affect eligibility for a refund.
The key conditions for a partial refund in this scenario are:
-
The worker has completed at least the first 12 months of employment
-
There is at least one complete 6-month period remaining on the CoS
-
The sponsor has notified UKVI through the SMS that the worker has left employment within 28 days of the worker leaving
Refunds are calculated based on complete unused 6-month periods only. The first 12 months of sponsorship are not refundable under any circumstances. See the section “No Refund for the First Year” below for further detail.
Example
A medium-sized sponsor assigns a CoS for three years. Based on the current ISC rates, the sponsor pays:
-
£1,320 for the first 12 months
-
£660 for the next 6 months (months 13–18)
-
£660 for the following 6 months (months 19–24)
-
£660 for the next 6 months (months 25–30)
-
£660 for the final 6 months (months 31–36)
This gives a total ISC payment of £3,960.
If the worker leaves the role after 18 months, the sponsor has only used: (1) the first 12 months, and (2) the next 6 months. The remaining 18 months of sponsorship will no longer be used. Since the unused period covers three full 6-month periods, the sponsor may receive a refund for those unused periods.
The refund is calculated as: 3 × £660 = £1,980.
So, the sponsor would be entitled to an ISC refund of £1,980.
Note on extensions: If a sponsor subsequently extends a worker’s visa and pays a new ISC for the extension period, the same refund rules apply independently to each ISC payment. Each payment is assessed separately based on its own sponsorship period and trigger events, so an entitlement to a refund on the original payment does not affect or reduce the refund position on any later payment.
Worker Changes to Another Sponsor
If the worker moves to a different employer and that employer becomes their new sponsor, the original sponsor is entitled to a partial refund for the unused portion of the sponsorship period, provided there is at least one complete 6-month period remaining and the first 12 months have been completed.
The original sponsor must report the change through the SMS by withdrawing the CoS or reporting that the worker has ceased working for them.
Overpayment Due to Sponsor Size Classification
A partial refund is available if the sponsor paid the ISC at the medium or large sponsor rate when assigning the CoS but had already notified UKVI that they qualified as a small or charitable sponsor before the certificate was assigned. This refund corrects the overpayment and ensures the sponsor only pays the rate applicable to their correct classification.
Circumstances Where No ISC Refund is AvailableISC
It is equally important to understand when ISC refunds are not available, to avoid misunderstandings and ensure accurate financial planning.
No Refund for the First Year
The ISC for the first 12 months of sponsorship is never refundable, regardless of how early the worker leaves or what circumstances arise during that period. Even if the worker departs on the very first day, the charge covering those initial 12 months cannot be recovered. This policy reflects the administrative costs associated with processing sponsorship applications. It is the basis on which partial refunds under the “Worker Leaves Employment Early” scenario are calculated, the refund only arises for complete unused 6-month periods beyond the first 12 months.
Internal Job Changes
If a sponsored worker changes role within the same organisation but remains employed by the same sponsor, no refund is available for the ISC, even if a new CoS must be assigned. However, if the new CoS does not extend the worker’s visa period, no additional ISC is payable. If the new certificate extends the visa period, an additional charge is payable only for the extended period.
Short-Term Sponsorship (12 Months or Less)
When the sponsorship period specified on the CoS is 12 months or less, no refund is available if the worker leaves early, as the entire charge covers the minimum 12-month period.
Change of Immigration Route
If a sponsored worker switches to a different immigration route, for example: from Skilled Worker to Global Talent, or to a family visa such as a Spouse visa, no refund of the ISC is available, even if the worker continues in employment with the same employer. The reason is straightforward: the ISC is a charge levied in connection with the specific visa route under which the worker was sponsored, not with the employment relationship itself. Once the worker moves off the Skilled Worker or Senior or Specialist Worker route, the charge paid for that route is spent and cannot be recovered, irrespective of whether employment continues.
The ISC is specific to the Skilled Worker and Senior or Specialist Worker routes, and the charge paid is not transferable or refundable when the worker obtains leave under a different category.
Compliance Breaches
No refund is available if the sponsor’s licence is revoked or if the worker’s leave is curtailed due to compliance breaches, whether by the sponsor or the worker. This includes situations where the sponsor has failed to meet their duties, such as failing to monitor sponsored workers, keeping inaccurate records, or permitting workers to work in breach of their conditions. Similarly, if the worker breaches their visa conditions, no refund is provided.
Dormant Sponsor Licence
If a sponsor licence is made dormant (for example, when the sponsor temporarily ceases sponsoring activity), any ISC already paid is not refundable.
How ISC Refunds are Processed
ISC refunds are processed automatically by UKVI in most cases. The refund is triggered by a specific reporting action taken within the SMS by the sponsor. For example, when a sponsor updates the worker’s record to indicate that employment did not commence, that the worker has left, or that the CoS has been withdrawn, this reporting action in the SMS initiates the refund process. In cases where the trigger is automatic (such as expiry of an unused CoS or visa refusal), no action by the sponsor is required.
The refund is returned to the same payment method used to pay the original charge. Sponsors should ensure that the payment details associated with their account remain current, as refunds are returned to the original payment source.
Standard Refund Timescales
UKVI aims to process refunds within 90 days of the relevant trigger event. The trigger events are:
-
The date the sponsor notifies UKVI through the SMS that the worker did not commence employment or has left employment early
-
The expiration date of the CoS, if it was not used to apply for a visa
-
The date the visa application is refused or withdrawn
-
The deadline for applying for administrative review (if no application is made following visa refusal)
-
The date the administrative review is dismissed (if one was submitted following refusal)
-
The date the CoS was assigned (in cases where the sponsor had already notified UKVI of their small or charitable sponsor status before assignment)
These timescales are indicative, and in practice, refunds may be processed more quickly or, in some cases, may take longer depending on UKVI’s processing workload.
What to Do if Your ISC Refund is Delayed
If a refund has not been received within 90 days of the relevant trigger event, sponsors should contact UKVI to enquire about the status of the refund. Contact can be made through the following channels:
-
Email
businesshelpdesk@homeoffice.gov.uk
-
Telephone
The sponsor should use the contact details provided in their SMS account
When contacting UKVI, sponsors should have the following information available:
-
Sponsor’s licence number
-
CoS reference number
-
Date the CoS was assigned
-
Amount of ISC paid
-
Date of the trigger event (such as when the worker left employment or when UKVI was notified)
-
Details of the payment method used to pay the original charge
Having this information readily available will facilitate quicker resolution of refund enquiries.
Common ISC Refund Scenarios and Outcomes
To illustrate how the refund provisions operate in practice, the following table summarises common scenarios:
Conclusion
The Immigration Skills Charge refund framework can offer meaningful cost recovery for sponsors where a sponsorship does not proceed as planned or ends earlier than expected. Understanding when full or partial refunds are available, when no refund can be claimed, and how UKVI processes repayments is important for both financial planning and compliance.
Clear and timely reporting through the SMS, accurate record keeping, and active monitoring of sponsored workers all help ensure that eligible refunds are received and that sponsors do not miss out on amounts that should properly be returned to them.
