The UK sponsor licence officially permits British businesses to hire foreign workers. As part of the application process, organisations must pay a sponsor licence fee. There are also other associated costs with sponsoring foreign workers, including the immigration skills charge and certificate of sponsorship fees.
This article provides a breakdown of the UK sponsor licence fees. It’ll help you understand the cost of hiring foreign employees for your e-commerce business and what to do before sponsoring workers.
The cost of the UK sponsor licence varies depending on two primary factors. The first factor is the organisation’s size, whether it is a small business or a medium or large enterprise. The second factor is the type of work the sponsored worker will undertake, such as if they are coming to the UK as a temporary or permanent worker.
If you run a small e-commerce business, obtaining your sponsor licence will cost £536. This fee applies whether you’re applying for a Temporary worker or Worker licence. If you want to upgrade from a Temporary worker licence to a Worker licence and vice versa, you won’t need to pay any additional fees.
According to the Home Office, you can apply for a small sponsor licence if your business fits one of these categories.
If your business has an annual turnover of over £10.2 million or the total assets are worth over £5.1 million, it is a medium or large business.
The application fee for a Worker licence for a medium or large business is £1,476, while a Temporary worker licence costs £536. No additional fee applies if you want to obtain a Temporary worker licence after you have already obtained an approved Worker licence. However, you’ll pay £940 to upgrade a Temporary worker licence to a Worker licence.
Once you’ve obtained a sponsor licence, you can use it to issue prospective employees a Certificate of Sponsorship (CoS), which they’ll need to apply for their work visa. You’ll have to pay a fee for each certificate of sponsorship that you issue. The amount varies depending on the visa type and the length of the worker’s contract in the UK.
Below is a tabular breakdown of the cost of a certificate of sponsorship in the UK.
| Visa Type | Cost for assigning a CoS |
| Temporary Worker | £25 |
| Worker (excluding international Sportsperson Visa) | £239 |
| International Sportsperson (with a certificate of sponsorship assigned for 12 months or less) | £25 |
| International Sportsperson (with a certificate of sponsorship issued for over 12 months | £239 |
When sponsoring workers on the Skilled Worker or Senior Specialist Worker route, you’ll also need to pay the immigration skills charge. This fee is compulsory if you are sponsoring a worker:
Like the sponsor licence fee, the amount varies for small and large businesses. Small and charitable sponsors will pay £364 for every worker in their first 12 months and £182 for every additional six months. Medium and large sponsors will pay £1,000 per worker for the first 12 months and £500 for each additional six months.
Additionally, your worker(s) may be exempt if they fall into the categories below;
Businesses can pay for the Home Office’s Worker and Temporary worker premium service to get support for sponsoring foreign workers, including help issuing a CoS or using the sponsorship management system. The premium service is optional and costs £8,000 annually for small e-commerce businesses and £25,000 annually for medium and large organisations.
Here are some essential things to note if you want to hire foreign workers in the UK.
Before applying for your sponsor licence, set up the right infrastructure to manage foreign workers. This includes HR policies to maintain accurate records of workers and systems to report any change in circumstance, such as if a worker has not shown up for work for some time.
You’ll also need to assign key personnel to manage the sponsorship duties, including an authorising officer, a Home Office key contact, and the day-to-day user of the sponsorship management system.
When you apply for a sponsor licence, the Home Office might visit your organisation to check if you have the right structures. As such, it’s essential to prepare ahead.
There are some regulations that govern hiring foreign workers in the UK. For instance, you may need to demonstrate to the UKVI that there is a shortage of qualified candidates in the UK without immigration restrictions and explain why you are recruiting from abroad.
The sponsored role must also comply with the UK’s minimum wage and working time regulations and meet all general and route-specific requirements. You should also ensure the prospective employee has the necessary skills, experience, and professional qualifications for the role and keep copies of documents showing this.
Additionally, you must meet the following requirements:
You can apply for the sponsor licence online through the UK government website. You’ll need to complete the application form and pay the relevant fees. Then, you’ll be directed on how to send your submission sheet and any supporting documents.
You’ll usually receive a decision within eight weeks. If your application is successful, you can assign a certificate of sponsorship to your foreign employee.
The UK sponsor licence fees vary depending on the sponsored role and organisational type. It’s essential to know the correct fee for your business and pay it promptly to ensure a successful outcome. Besides the application fee, there are other strict requirements you must meet. Consider consulting a UK immigration lawyer to guide you through the process.
Meta Title: UK Sponsor Licence Fee for E-commerce Businesses
Meta Description: Find out the cost of applying for a sponsor licence for e-commerce businesses in the UK and what you need to do before hiring foreign workers.
