The UK Immigration Skills Charge (“ISC”) is a fee that UK employers must pay for each migrant worker that is sponsored in the Skilled Worker or Global Business Mobility – Senior or Specialist Worker categories, unless an exemption applies.

1. Overview of the Immigration Skills Charge

The ISC was introduced on 6 April 2017. It is payable at the time that a Certificate of Sponsorship (“CoS”) is assigned to a migrant worker, where they are contracted to work for more than six months if applying to come to the UK, or for any amount of time if applying from within the UK.

The amount sponsors are required to pay is specified in the Schedule to the Immigration Skills Charge Regulations 2017. However, the recent White Paper “Restoring Control of the Immigration System”, published in May 2025, sets out that the fees are set to increase by 32% to bring the ISC in line with inflation. Previously, it has not been increased since its implementation in 2017. No set date for the increase has been published at the time of writing this article. 

Initially, the purpose of the fee was to help maintain the Department of Education’s existing skills budget and existing level of investment in skills in England, according to the Home Office Trust Statement 2017 to 2018, published on 08 January 2019. The May 2025 White Paper sets out that the “ISC funding will be used at the oncoming spending review to support skills funding for priority sectors to upskill the domestic workforce and reduce reliance on migration over the medium term.”

2. Responsibility for Paying the ISC

Many sponsors enquire about whether the worker themselves can pay the ISC, either at the outset, or through deductions of their salary. It is imperative to note that the sponsor cannot pass the ISC onto the worker through any means, doing so could result in the revocation of the Sponsor Licence. 

3. Immigration Skills Charge Amounts

The amount payable is dependent on the size and type of the organisation, and the length of employment as stated on the CoS. 

Sponsor Type	Amount Payable Per Year of Sponsorship	Amount Payable Per Additional Six Months
Small Business / Charitable Organisation	£364	£182
Medium / Large Business	£1,000	£500

A small or charitable sponsor is defined in Regulation 2 of the Immigration Skills Charge Regulations as: 

• a company subject to the small companies regime under section 381 of the Companies Act 2006(4);
• a charity within the meaning of section 1 of the Charities Act 2011(5), or section 1 of the Charities Act (Northern Ireland) 2008(6), or a body entered in the Scottish Charity Register (7); or
• a person who employs no more than 50 employees.

All other sponsors who do not fit into the definition of a small business or charitable organisation are required to pay the larger fee.

As set out above, these figures are due to increase by 32% to the following amounts. 

Sponsor Type	New Amount Payable Per Year of Sponsorship	New Amount Payable Per Additional Six Months
Small Business / Charitable Organisation	£480	£240
Medium / Large Business	£1,320	£660

4. Payment of the ISC

The Immigration Skills Charge is paid each time a sponsor assigns a Certificate of Sponsorship to a migrant worker, unless an exemption applies.

5. Exemptions to the Immigration Skills Charge

There are numerous exemptions to paying the ISC.

1. Exemptions for Certain Occupation Codes 

Sponsors do not have to pay the ISC where they are sponsoring a worker in any of the below occupation codes. 

• (2111) – chemical scientists;
• (2112) – biological scientists;
• (2113) – biochemists and biomedical scientists;
• (2114) – physical scientists;
• (2115) – social and humanities scientists;
• (2119) – natural and social science professionals not elsewhere classified
• (2161) – research and development managers;
• (2162) – other researchers, unspecified discipline; and
• (2311) – higher education teaching professionals.

2. Length of Sponsorship

Sponsors employing workers applying for entry clearance for employment of less than six months are exempt. 

Sponsors are also exempt from paying the ISC when assigning a CoS to an existing sponsored worker (where the Sponsor has already assigned a CoS to the worker / the worker has been transferred via TUPE or similar protection) and the new period of permission they are seeking will not exceed their current period of permission. If the grant of permission would exceed their current grant, then the fee would be payable unless another exemption applied. 

3. Sponsored in the  Global Business Mobility Senior / Specialist Worker Route 

Since 01 January 2023, employers who assign a CoS to a worker in this category will not be required to pay the ISC where:

• The worker meets the requirements for this route;
• The worker is a national of an EU country or a Latvian non-citizen (note that this does not apply to nationals of Iceland, Norway, Liechtenstein or Switzerland);
• The overseas company which employs the individual is a business established in the EU and forms part of the same ‘sponsor group’ as the company sponsoring them to work in the UK;
• The UK assignment, based on the dates provided on the Certificate of Sponsorship, will be no more than three years in duration.

4. Valid Permission for the Purpose of Study

Where a worker has valid permission for the purpose of study, and is applying to ‘switch’ to the Skilled Worker or Senior or Specialist Worker route, the Sponsor will not be required to pay the ISC. The exemption applies whether or not the worker is currently in the UK provided that they have current, valid, permission in one of the following routes:

• Student;
• Child Student;
• Tier 4 (General);
• Tier 4 (Child);
• Short-term Student (English language). 

This exemption will continue if a new CoS is assigned to the same worker to continue working in the same role. 

5. Sponsored Previously Before 06 April 2017

A worker who was assigned a CoS under Tier 2 (General) or Tier 2 (ICT) Long-term Staff before 06 April 2017 and:

• that CoS resulted in a grant of entry clearance or permission to stay;
• the worker undertook the role for which that CoS was assigned; and
• the worker has not since ceased to have permission under Skilled Worker (or its predecessor route, Tier 2 (General)) or Senior or Specialist Worker (or its predecessor routes, Intra-Company Transfer, or the Long-term Staff sub-category of Tier 2 (Intra-Company Transfer)).

Note – the Immigration Skills Charge applies to the workers alone and no additional charge is required for the worker’s dependents, i.e. their partner or children.  The Immigration Skills charge also does not apply to any other Worker or Temporary Worker route.

6. Consequences of Not Paying the Immigration Skills Charge

Sponsors will be contacted by UK Visas and Immigration if the Immigration Skills Charge was not paid when the CoS was assigned. The CoS is invalid until the ISC is paid in full. Failure to pay, could also lead to delays in considering immigration applications made on the basis of the CoS.

If the Immigration Skills Charge is not paid in full within 10 working days of the first reminder, the worker’s application will be refused. 

7. Immigration Skills Charge Refunds

The Immigration Skills Charge may be refunded in part or full. If refunded, the amount will be paid back to the credit or debit card the charge was paid with, unless the sponsor advises the Home Office of a different pay arrangement. 

A full refund will be made where the worker’s application is refused, withdrawn or granted but the worker does not travel to the UK or start work for the sponsor.  

A partial refund will be made for all whole unused six month periods of permission, after the first year of employment where the worker:

• Is granted permission for less than the period requested on the CoS;
• The worker starts work for one sponsor, but then voluntarily changes to another sponsor. In this scenario, the first sponsor will be paid the difference between the charge paid and the charge payable for the length of time the worker worked for the first sponsor;
• The worker leaves their post early.

Sponsors will also receive a partial refund where a CoS has been assigned to a worker and the Sponsor had been verified as a small business a charitable organisation prior to the CoS being assigned. The Sponsor will have had to notify the Home Office of this change prior to the CoS being assigned. 

Decisions on refunds are generally made within 90 days of:

• the date the Sponsor tells the Home Office that the worker did not come to work;
• the expiry date on the worker’s Certificate of Sponsorship, if they did not use it to apply for a visa;
• the date the worker’s visa application is refused or withdrawn;
• the date the Sponsor assigned the Certificate of Sponsorship, if the Sponsor had already notified the Home Office that it had become a small or charitable sponsor.

The Home Office will not refund the Immigration Skills Charge where:

• the worker changes job but remains working for the Sponsor;
• the worker switches from the Skilled Worker or Senior or Specialist Worker route to another immigration route, but remains employed in the same job;
• the licence is made dormant;
• the licence is revoked;
• the worker’s permission is cancelled (unless the permission is cancelled because the worker failed to commence employment or finished employment early).

8. Contact Our Business Immigration Barristers 

It is important that sponsors pay the required Immigration Skills Charge in order to ensure there are no unnecessary delays to a migrant’s immigration application reliant on the CoS.

For advice regarding Immigration Skills Charge fees, refunds or exemptions, contact our business immigration barristers in London on 0203 617 9173 or via our enquiry form below.

9. Frequently Asked Questions

What is the Immigration Skills Charge?

The Immigration Skills Charge (“ISC”) is a fee UK employers must pay when sponsoring a Skilled Worker or Global Business Mobility – Senior or Specialist Worker, unless an exemption applies.

Who has to pay the Immigration Skills Charge?

The ISC must be paid by the sponsoring employer. It cannot be passed on to the worker, either directly or through salary deductions.

How much is the Immigration Skills Charge in 2025?

The fee depends on the size and type of the organisation. From the forthcoming increase announced in the May 2025 White Paper, small or charitable sponsors will pay £480 per year, while medium and large sponsors will pay £1,320 per year.

Are there exemptions to the Immigration Skills Charge?

Yes. Exemptions apply in certain cases, including for specific occupation codes, short-term employment of less than six months, EU nationals on the Global Business Mobility – Senior or Specialist Worker route, and those switching from a Student visa.

Can the Immigration Skills Charge be refunded?

Sponsors may receive a full or partial refund in some circumstances, for example if a visa application is refused, withdrawn, or if a worker leaves their role early.

Does the Immigration Skills Charge apply to dependants?

No. The charge only applies to the sponsored worker, not to their dependants.