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Need Help with Your Sponsorship?
Our experienced UK immigration lawyer at Legend Consults can help you develop cost-effective sponsorship strategies, explore all available visa options, and ensure your business remains compliant whilst accessing the global talent you need to thrive. Contact us today!
Increased UK visa fees and thresholds are now official. Sponsoring Skilled Worker Visas has become costlier with the new higher salary/skill thresholds and visa application fees. The Immigration Skills Charge (ISC) will also see another increase later this year, but the Immigration Health Surcharge (IHS) will remain unchanged.
The changes, however, don’t necessarily mean the end of overseas hiring for small and medium-sized businesses in the UK but calls for a need for smarter and strategic planning.
A Breakdown of Typical Costs
Excluding potential legal or recruitment fees, here are the costs to consider if you are sponsoring a Skilled Worker for a three-year visa.
- New general minimum salary: £41,700 per year (up from £38,700) from 22 July
- Skilled Worker Visa application from outside the UK for a CoS issued for 3 years or less: increased to £769 per applicant
- Immigration Health Surcharge (IHS): £1,035 per sponsored worker in a year (£3,105 per person for a 3-year visa)
- Anticipated 32% increase later this year for Immigration Skills Charge (ISC): may go up to £480 per year from £364 (£1,440 for a 3-year visa)
That means sponsoring an overseas employee on a 3-year visa could mean approximately £41,700 (salary) + £719 (visa fee) + £3,105 (IHS) + £1,092 (ISC) = £46,616. Note that this excludes recruitment and other associated costs.
Smart Hiring Strategies for SMEs
Higher costs aren’t a barrier if you have the right strategies and perspectives in place.
- Only fill in critical skill gaps that your local area cannot meet. The new UK immigration overhaul may toughen the standards, but it directly means you should prioritise international talents who can substantially impact your business’s bottom line.
- Consider the long-term value your overseas Skilled Worker candidate may provide. Once you are sure they can bring innovation, better productivity, and sustained growth to your business, the benefits will soon outweigh your initial expenses.
- Do not hire multiple overseas workers at once. Apply strategic, phased hiring so you can be sure every sponsored role serves your business’s immediate and future objectives.
- Focus on employee retention if you have already invested in sponsoring an overseas Skilled Worker. Creating a positive and supportive work environment will encourage them to stay longer, which can greatly reduce staff turnover and minimise the need for another costly sponsorship process.
- Explore how technology can streamline your operations and reduce your overall need for a large workforce.
- Learn about other available visa routes aside from the standard Skilled Worker Visa (e.g., Global Talent visa). There may be other more cost-effective or better suited visas for your specific roles.
Budgeting and Financial Planning Tips
Smart budgeting is also a great need. Here’s how SMEs can plan their visa costs effectively:
- Break down all your associated costs, including salary, visa application fees, IHS, ISC, and any potential legal or recruitment expenses.
- Conduct a thorough ROI analysis for your potential sponsored role.
- Most fees are upfront, such as for visa and IHS, but you may be allowed to pay ISC in instalments.
- Consult with financial advisors for proper financial planning.
