Applying for a sponsor licence is essential for employers hiring workers from outside the UK. The UK Visas and Immigration (UKVI) Department of the Home Office issues the sponsor licence allows employers to employ non-UK workers legally. However, obtaining a sponsor licence comes at a cost, and employers must understand the fees involved and how they vary depending on their category. We’ll be looking at the sponsor licence application fees. We’ll also explore the factors determining the sponsor licence application cost and provide an overview of the 2023 fees.
What is a Sponsor Licence?
A sponsor licence is a permit issued by the UKVI to employers that allows them to hire employees from outside the UK. It is a requirement for all employers who want to sponsor non-UK workers under the Tier 2 (General) visa category. The sponsor licence application process involves several steps, including demonstrating that the employer has suitable systems to monitor immigration compliance and that they can fulfil their immigration duties.
How much does it cost to apply sponsor licences?
The Sponsor licence application cost varies depending on the type of licence applied for and the organisation’s structure. There are two types of licences: a Tier 2 licence and a Tier 5 licence. The Tier 2 licence is for employers intending to hire skilled workers, while the Tier 5 licence is for employers looking to sponsor temporary workers.
The cost of a Tier 2 licence application for a small business is £536, while the cost for a large business is £1,476. Charities are charged £536 for a Tier 2 licence application, and for Tier 5 licences, the cost is £536 for all categories of sponsors.
What factors determine the cost of the sponsor licence application?
Business Size
Organisations classify into small or large businesses based on the number of employees they have. Small businesses have fewer than 50 employees, while large businesses have more than 50 employees. The business size will determine your sponsor licence application fee, as set by UKVI fees. Sponsor licence UKVI fees for small businesses are generally lower than those for large businesses.
Type of Licence
The type of sponsor licence will impact the fee an employer needs to pay. There are two types of sponsor licences: Tier 2 and Tier 5. It’s essential to review updated UKVI fees regularly to determine the correct application cost and ensure that you apply for the right licence category to avoid additional fees. Employers must also consider additional costs involved in the process, such as Certificate of Sponsorship assignment fees and visa application fees. Awareness of the costs of obtaining a sponsor licence is crucial for employers hiring non-UK workers.
Industry Sector
The industry sector in which the employer operates can impact the sponsor licence application process and the associated costs, as some sectors may be subject to additional scrutiny by the UKVI. If an employer operates in the healthcare industry, they must demonstrate additional compliance with immigration rules, which could increase the cost of the sponsor licence application.
Therefore, it is essential for employers to thoroughly understand the specific requirements and regulations that pertain to their industry sector when applying for a sponsor licence in the UK.
Compliance Record
For applying for a sponsor licence in the UK, it is crucial to demonstrate that the employer complies with UK immigration rules. Employers who have previously had compliance issues may face additional scrutiny during their application process, which could impact both the processing time and the cost of the sponsor licence.
They must provide additional documentation or undergo more frequent checks, which may increase fees. Therefore, employers must maintain strong compliance records and ensure all policies and procedures meet the UKVI requirements.
Legal Representation
When applying for a sponsor license, employers may engage the services of a lawyer or immigration specialist to assist with the application process. While legal representation can be beneficial in ensuring that they meet all requirements and that the application gets prepared correctly, it will also add to the total cost of the application.
The legal representation cost depends on the case complexity and the level of support required, and employers should consider this in their budget when planning for the overall cost of the sponsor licence application. Additionally, choosing a reputable legal representative is essential to ensure the best outcome for the application.
Renewal Fees
Renewing a sponsor licence is an essential process for UK employers who wish to continue hiring foreign workers, as sponsor licences expire after four years. Renewing a sponsor licence can be lower than the initial application fee, but employers should still consider this cost when budgeting for the long term. The renewal fee for a sponsor licence in the UK depends on the licence type and your organisation’s size.
Additional Fees
Employers should be aware that they must consider several additional Sponsor Licence UKVI fees for the sponsor licence in the UK. Fees include the cost of assigning a Certificate of Sponsorship (CoS) to each visa worker, which varies according to the employer’s sponsor licence. The cost of assigning a CoS is essential while budgeting for the overall cost of sponsoring skilled workers.
Additionally, sponsoring a worker comes with additional costs, such as fees for each visa application and subsequent renewals. These costs quickly add up, making it crucial for employers to plan and ensure that they have adequate resources to cover these expenses.
What is the sponsor licence cost in 2023?
The UKVI updates the sponsor licence fees annually, and the cost of a sponsor licence may vary yearly. As of 2023, the Sponsor licence ukvi cost for a Tier 2 licence application for a small business is £536, while the cost of sponsor licence uk for a large business is £1,476. Charities are charged £536 for a Tier 2 licence application. For Tier 5 licences, the cost is £536 for all categories of sponsors.
How Osbourne Pinner Can Help You?
Obtaining a sponsor licence is essential for employers hiring workers outside the UK. The cost of the sponsor licence application varies depending on the licence type and the organisation’s structure. Small businesses pay less than large businesses, while charities pay the same as small businesses. Employers need to consider these costs when budgeting for foreign workers or students.
Do you wish to get most updated information on sponsor licence application fees? Then, Get in touch with us!
We offer 30 minutes free of charge initial consultation which takes place at our offices or through a video conference. (Whatever mode you prefer)!
If you would like us to book you for this free consultation, then give us a call on 0203 983 5080Â or fill the online enquiry form. We will contact you in no time!
