Using the Immigration Skills Charge and Certificate Costs in Workforce Planning: Practical Guidance for Employers

You need clear numbers to plan hiring and budgets when sponsoring overseas workers. Build your workforce plan around the Immigration Skills Charge and Certificate of Sponsorship fees so you can forecast total hiring costs, decide where to hire, and set realistic onboarding timelines.

This article shows how the ISC and CoS fees affect short‑ and long‑term staffing choices, highlights recent and upcoming rate changes, and explains when exemptions might apply. Use the practical strategies here to compare the cost of sponsoring talent with investing in local training and to make sensible recruitment decisions that match your budget and timelines.

Understanding the Immigration Skills Charge and Certificate Costs

You will learn who pays the charge, when it applies, and how the Certificate of Sponsorship (CoS) and visa routes affect your hiring costs. The points below show the charge’s purpose, how a CoS works, and which visa categories commonly trigger the fee.

Purpose and Policy Background

The Immigration Skills Charge (ISC) aims to encourage employers to train the UK workforce while allowing firms to hire skilled overseas workers. You must usually pay the ISC when you assign a CoS for the Skilled Worker route or certain Global Business Mobility visas. The Home Office introduced the charge to offset reliance on migrant labour and fund domestic training schemes.

Rates depend on your organisation type and the length of sponsorship, and you pay the fee when you assign the CoS, not when the worker applies for their visa. Some employers and roles are exempt — for example, charities, certain public bodies, and short-term placements. Check the Home Office guidance to confirm exemptions for your situation.

Overview of Certificate of Sponsorship Requirements

A Certificate of Sponsorship is a digital record that proves you are sponsoring a named worker and sets out the job, salary and sponsorship dates. You must hold a valid sponsor licence to assign a CoS. The licence requires you to meet record-keeping, reporting and compliance duties to the Home Office.

Costs tied to a CoS include the assignment fee and, where applicable, the ISC. You assign the CoS before the worker applies for their visa, and the worker needs the CoS reference to submit their application. Keep accurate records and evidence of recruitment and salary to defend decisions during Home Office audits.

Relevant Visa Categories and Routes

The ISC and CoS are most relevant for the Skilled Worker visa and the Global Business Mobility: Senior or Specialist Worker routes. For Skilled Worker hires, expect to pay the ISC unless an exemption applies. For Global Business Mobility routes, the charge applies for Senior or Specialist Worker assignments in many cases.

Other routes, such as Global Talent or certain intra-company transfers, may be exempt or follow different rules. You must confirm the visa category before assigning a CoS and calculating costs. Review the Home Office guidance for each route to determine whether the ISC, CoS assignment fee, or other charges apply to your hire.

Current and Future Immigration Skills Charge Rates

You will see a significant ISC rise from December 2025 and clear rules on how to calculate what you pay. The charge varies by sponsor size, route, and whether the role is onshore or offshore.

2025-2026 Rate Increases and Dates

From 16 December 2025 the Immigration Skills Charge (ISC) increases by about 32%.That change raises the large/medium employer annual ISC to £1,320 for skilled worker roles where the charge applies.

Key dates and impacts:

• 16 December 2025 — new ISC rates take effect for any Certificate of Sponsorship (CoS) assigned on or after this date.

• If you assign a CoS before that date, the old rate applies even if the visa application is submitted later.

You should check whether the CoS assignment or allocation triggers the fee. The ISC is paid when you assign a CoS to a migrant; allocation alone does not always create the payment requirement.

Calculating the Immigration Skills Charge

You calculate the ISC when you assign a Certificate of Sponsorship (CoS).Rates differ by sponsor size and by whether the role is temporary or permanent.

Typical charges (examples):

• Large/medium sponsors: £1,320 per year for most Skilled Worker placements from Dec 2025.

• Small or charitable sponsors: lower rates remain, historically around £364 or £480 depending on route and length; check specific guidance for exact 2025 figures.

Calculation steps:

1. Determine sponsor category (large/medium or small/charitable).

2. Count the length of the visa in years and months. The ISC is pro-rated for periods under a year.

3. Multiply the applicable annual rate by the visa length (rounding rules apply in guidance).

Always use your sponsor licence records and the specific CoS assignment date to confirm the charge. Small missteps can change your cost by hundreds of pounds.

Charitable and Small Sponsor Fees

Charitable and small sponsors pay lower ISC rates to reduce costs for non-profits and small employers.These reduced rates can be around £364 or £480 per year depending on the route and are designed to ease the burden compared with the large sponsor rate of £1,320.

Practical points:

• Confirm your sponsor size in the Home Office definitions before budgeting.

• Charitable status usually needs to be evidenced during licence application and must match Home Office criteria to qualify for the lower ISC.

• If you switch sponsor size (for example, you grow from small to large), future CoS assignments use the new category’s rate from their assignment date.

These lower rates can make a major difference in workforce planning when you expect multiple hires on Skilled Worker or GBM routes.

Recent Changes to Related Fees

Several related immigration fees have also changed recently, affecting your total cost to hire.The Home Office updated CoS assignment fees and some visa application fees alongside the ISC rise.

Notable items to track:

• Certificate of Sponsorship assignment fee remains a separate cost you pay when assigning a CoS. This is distinct from the ISC.

• Changes to CoS allocation rules can affect whether you pay on assignment or keep allocations for later use.

• Increases to visa application fees or health surcharge may add to the £1,320 ISC level you now budget for.

You should update your internal cost model to include the ISC, the CoS assignment fee, and any higher visa or surcharge amounts to avoid underestimating total hiring costs.

Exemptions and Special Provisions

Certain roles, visa routes and timing rules can reduce or remove the Immigration Skills Charge (ISC) and certificate fees. You should check whether staff in research, higher education, or specific visa categories qualify for exemptions, and note special rules for assignments made before 16 December 2025.

Role-Based Exemptions

You do not pay the ISC for sponsored staff whose work is primarily research or teaching at a UK higher education provider when the role fits defined categories.

This typically covers chemical scientists, biological scientists, biochemists and biomedical scientists, physical scientists, social and humanities scientists, and other natural and social science professionals employed on recognised research posts.Research and development managers and senior researchers may also qualify if their duties are mainly research-led rather than commercial delivery.

Exemptions usually require the sponsor to be a recognised higher education institution or an eligible research organisation. You must record the role purpose on the Certificate of Sponsorship and keep evidence that the position is teaching or genuine research work.

Visa Route Exemptions

Some visa routes carry specific ISC rules. You do not pay the ISC for migrants switching or applying under the Graduate route. Global Business Mobility (GBM) routes, such as Senior or Specialist Worker streams, can attract the ISC unless a route-specific exemption applies.If you sponsor someone under the Global Business Mobility route but they meet a research or higher education exemption, you may avoid the ISC.

Existing sponsorships that move between routes require careful review to confirm whether the new route reintroduces the charge. Always check the visa category on the application. The certificate cost still applies even when the ISC is exempt, unless a separate exemption for certificate fees exists.

Transitional and Time-Sensitive Provisions

Assignments made before 16 December 2025 follow the charging rules in force at the time of assignment. If you assign a certificate of sponsorship before that date, the ISC rate and any applicable exemptions at assignment apply for the visa length you pay for.From 16 December 2025, the ISC rates change; you must account for the higher fees on new assignments after that date. For internal moves where you reassign a certificate within your organisation, review whether the new assignment date triggers the updated charge.

If you already sponsor someone under an existing sponsorship and they change jobs or roles within your organisation, treat the change as a new assignment for ISC purposes unless guidance states otherwise. Keep careful records of assignment dates, role descriptions, and visa routes to prove exemption eligibility.

Workforce Planning Strategies Incorporating Immigration Costs

Plan your immigration budgets early, build sponsorship costs into role approvals, and link recruitment to training plans so you can hire on time without surprise charges.

Budget Forecasting and Impact on Recruitment

Forecast immigration budgets by listing expected Certificate of Sponsorship fees, the Immigration Skills Charge (ISC) per hire, and the immigration health surcharge for each worker. Use a simple spreadsheet that shows per-role totals and annualised costs for 6, 12 and 24-month scenarios.Track changes in ISC rates and certificate costs so finance and HR can approve jobs before offers are made.

This prevents last‑minute delays when costs move from offer stage to onboarding.Model two hiring scenarios: hiring an overseas specialist with full upfront charges, and hiring domestically with a training budget. Compare total cost, time-to-productivity, and the risk of skills shortages. This helps you decide which roles to sponsor.

Adjusting Talent Acquisition and Onboarding

Adjust recruitment timelines to include sponsorship lead times: licence checks, CoS assignment, visa processing, and relocation. Add at least 8–12 weeks for Skilled Worker routes, and longer for complex cases.Include ISC, CoS fees and immigration health surcharge in offer letters or budget sheets so hiring managers see the true cost.

Plan relocation allowance and onboarding support separately to avoid underfunding new hires.Standardise documents and workflow templates. Use a checklist for immigration tasks and a single point of contact in HR to reduce delays. This lowers the chance of offers being withdrawn due to missed payments or missing paperwork.

Balancing Domestic Training and International Hires

Use the ISC purpose—to incentivise domestic training—when you decide whether to sponsor. For roles that recur often, invest in apprenticeships, short courses or retraining to reduce long‑term reliance on overseas labour.For specialist or one‑off skills shortages, sponsor overseas workers while you build a domestic pipeline. Set clear timelines: sponsor now, train later.

Allocate a portion of ISC savings into internal training budgets.Measure outcomes by tracking skill retention, vacancy rates, and hiring costs. This shows whether you are reducing reliance on international hires or still facing persistent skills gaps.

Compliance, Advice, and Best Practices

Stay compliant by keeping sponsorship licences up to date and by recording CoS assignments and worker status. Non‑compliance can lead to licence suspension and fines.Use immigration solicitors for complex cases or changes in legislation. They help with appeals, licence management, and interpreting ISC exemptions.

Budget for legal advice in your immigration forecasts.Keep a compliance checklist: licence expiry, right-to-work checks, ISC receipts, and immigration health surcharge payments. Train HR on these items and audit them quarterly to catch gaps early.

Looking for trusted legal experts? Athi Law offers experienced business immigration solicitors to support your company’s global talent needs, specialists in commercial conveyancing to protect your property transactions, and reliable independent legal advice for mortgage agreements. We also assist with immigration for parents, helping reunite families with care. Speak to us today!