The UK’s immigration system requires employers to act as sponsors when hiring international workers. For businesses seeking global talent under routes like the Skilled Worker visa, the Certificate of Sponsorship (CoS) is a legal requirement. But while many employers understand the concept, the full financial picture often catches them by surprise.
In this guide, we’ll explore exactly how much a Certificate of Sponsorship costs, what other associated fees employers should prepare for and when payments are due. If you’re navigating the UK’s sponsorship system for the first time or just want to avoid compliance pitfalls, read on to get expert guidance – plus details of how to access a free 30-minute consultation with our immigration solicitors.
What is a Certificate of Sponsorship (CoS)?
A Certificate of Sponsorship is not a physical certificate but a digital document that UK-based employers issue to migrant workers they intend to hire. Each certificate contains a unique reference number, which is used by the worker to apply for their visa. It confirms that the employer is a registered sponsor and that the role being filled meets the eligibility criteria for the relevant visa route.
There are two types of CoS:
- A Defined CoS – Used for workers applying from outside the UK under the Skilled Worker route.
- An Undefined CoS – Used for workers already inside the UK switching visas or extending an existing visa.
Assigning a CoS is a mandatory step and without it, the visa application cannot proceed. However, it also comes with costs that employers must bear – and these are not always limited to the certificate itself.
How much does a Certificate of Sponsorship cost?
The base cost of assigning a Certificate of Sponsorship is currently £239 for most work-related visas, including the Skilled Worker and Global Business Mobility routes. This fee must be paid every time a certificate is assigned to a worker. While it may seem straightforward, this is just one part of the total financial commitment.
Employers must be aware that the CoS cost is paid per certificate, meaning each sponsored individual represents a new fee. If your business is growing and plans to hire multiple overseas workers, these fees can add up quickly.
Are there additional costs beyond the CoS fee?
While the £239 CoS fee is a key requirement, employers must also budget for other mandatory costs tied to sponsorship. One of the largest is the Immigration Skills Charge (ISC), which applies when sponsoring a Skilled Worker for six months or longer.
The ISC currently stands at:
- £364 per year for small businesses or charities
- £1,000 per year for medium and large businesses
This charge is payable in full at the time the Certificate of Sponsorship is assigned and is based on the length of the sponsored worker’s visa. For example, sponsoring someone for three years would result in an upfront ISC payment of £1,092 (for a small business) or £3,000 (for a large employer). These costs are in addition to the CoS assignment fee.
Employers also need to be aware of potential legal and administrative costs, especially when using external immigration solicitors to assist with licence management or compliance checks. While these services aren’t mandatory, they can be vital for avoiding errors or Home Office penalties.
When do you pay for a Certificate of Sponsorship?
The Certificate of Sponsorship fee is paid at the moment you assign a certificate through the Sponsorship Management System (SMS). Payment is made online by credit or debit card and the certificate is issued once the fee has been processed. If you are also liable for the Immigration Skills Charge, that will be charged at the same time.
It’s important to have your payment methods ready and ensure there are no delays at this stage, especially when time is tight and your international hire has a pending visa application deadline.
Is the Certificate of Sponsorship refundable?
In most cases, CoS fees are non-refundable, even if the worker’s visa is refused or the candidate withdraws from the process. The only exception is when the certificate is assigned in error and cancelled before it is used – though this requires swift action.
The Immigration Skills Charge, however, may be partially refunded if the worker’s visa is refused or if they leave employment earlier than expected. This refund is not automatic – you must actively request it through the SMS portal.
What about self-sponsorship and startup scenarios?
If you’re planning to sponsor yourself as a business owner, such as under a self-sponsorship visa model, the Certificate of Sponsorship still applies. You must first secure a sponsor licence for your business and follow all the same procedures – assigning a CoS to yourself, paying the fees and demonstrating compliance. The Home Office scrutinises these cases closely, so legal advice is highly recommended.
Need support with sponsorship and compliance?
Understanding the costs of a Certificate of Sponsorship is only part of the challenge. Whether you’re hiring one international employee or building an overseas workforce, ensuring full compliance with UK visa rules is essential. Errors in assigning a CoS, late payments or improper role classifications can lead to Home Office penalties or visa refusals.
At Osbourne Pinner Solicitors, we support employers across the UK with sponsor licence applications, certificate management and immigration compliance. We also assist entrepreneurs exploring self-sponsorship options for UK expansion.
We offer a free 30-minute consultation to discuss your goals and next steps. Call 0203 983 508 or email [email protected] to speak with one of our expert solicitors.
