Sponsor guidance: immigration skills charge

As UK immigration rules continue to evolve, a significant concern for employers is the proposed increase in the Immigration Skills Charge (ISC). The increase was set out in the UK government’s immigration white paper, which was published in May 2025. The government plans to use the increased funds to invest in upskilling the domestic workforce, but no further information on the implementation date has been published.

With costs set to rise by 32%, understanding who is exempt from this charge is more important than ever for businesses managing international recruitment.

What is it?

The ISC is a fee that UK employers must pay when sponsoring workers under certain visa routes, including:

• Skilled Worker visa
• Global Business Mobility: Senior or Specialist Worker visa
• Health and Care Worker visa

This charge is paid when assigning a Certificate of Sponsorship (CoS) and cannot be passed on to the employee.

ISC rates

Who is exempt from the ISC?

Employers can reduce costs by understanding the key exemptions.

1. Occupation-based exemptions

No ISC is payable for roles under specific SOC codes, including:

• Ministers of religion.
• Scientific researchers (e.g., biochemists, physical scientists).
• Higher education teaching professionals.
• Arts officers and sports coaches.

2. Visa route exemptions

• Student visa switchers: Workers switching from a Student visa to a Skilled Worker visa within the UK are exempt.
• Short-term assignments: Workers employed for less than six months do not incur the charge.
• EU nationals on intra-company transfers: Under the Global Business Mobility route, EU nationals coming from an EU linked entity for up to 3 years are now exempt.

3. PhD-level roles

Workers in PhD-level occupations are fully exempt, regardless of company size or employment duration.

4. Extensions without additional time

If a sponsor issues a new CoS to the same worker without extending the duration of sponsorship, the ISC is not payable.

5. Dependants

Dependants of sponsored workers are also exempt from the ISC.

Refunds and adjustments

Employers may be eligible for a full or partial refund of the ISC, e.g. if:

• The visa is refused or withdrawn.
• The worker does not start employment.
• The worker leaves early.
• The sponsor is reclassified from medium/large to small.

Refunds typically take up to 90 days, so accurate record-keeping is essential.

Tips for Employers

• Understand the key exemptions.
• Keep your sponsor classification under review and report changes, e.g. from small sponsor to medium/large sponsor and vice versa.
• Integrate ISC costs into recruitment planning.
• Use the Sponsor Management System (SMS) to track payments.
• Stay updated on Home Office guidance.

 Need Help?

With rising costs and stricter immigration rules, UK employers must be proactive. Understanding ISC exemptions can help manage budgets and ensure compliance.

If you’re unsure whether your business qualifies for an exemption, get in touch with us for expert immigration advice.

Frequently Asked Questions (FAQ)

❓Can we pass the ISC cost on to the employee?

No. The ISC must be paid by the sponsoring employer and cannot be recovered from the employee.

❓How do we know if a role qualifies for an exemption?

Consider the circumstances and check the Standard Occupational Classification (SOC) code for the role. Exempt roles are listed in Home Office guidance and include researchers, ministers of religion, and PhD-level occupations.

❓Are part-time roles exempt from the ISC?

Not automatically. The exemption depends on the duration of the sponsorship and the type of role, not the number of hours worked.

❓ What happens if the worker leaves early?

You may be eligible for a partial refund of the ISC. You must notify the Home Office via the Sponsor Management System (SMS).

❓How do we claim a refund?

Refunds are processed automatically when you report changes via SMS. However, you should keep records and monitor the refund timeline (up to 90 days).

❓Is the ISC payable for Health and Care Worker visas?

Yes, unless the role qualifies for an exemption (e.g., PhD-level or short-term assignment). However, the visa itself may have reduced fees.

❓What if we’re unsure about our sponsor classification?

You can check your classification in the Sponsor Management System. If your business qualifies as a small sponsor or charity, you may pay a reduced ISC.