Immigration skills charge increases cost of sponsorship
28 February 2017
UK Visas and Immigration (UKVI) has published further information on the implementation of its new Immigration Skills Charge on 6 April 2017.
The new charge was originally proposed following the Migration Advisory Committee’s report last year. It will be payable in full at the time a Certificate of Sponsorship is issued (in much the same way as the application fee for the certificate is administered), and it will be chargeable whether the individual to whom it applies is inside or outside the UK.
The fee will be £1000 per sponsored employee per year of sponsorship. There is a reduced fee of £364 (which is also per sponsored employee per year of sponsorship) for small and charitable sponsors, and some groups are exempt (for example intra company transfer graduate trainees, PhD level roles and graduates switching immigration tiers). A small sponsor is likely to be a business which has an annual turnover of £10.2 million or less, or one which has 50 employees or fewer.
The minimum salary rate which must be paid to ‘experienced workers’ within the Tier 2 (General) category is changing and is also set to increase. From 6 April, this will rise to £30,000 per annum. There is also a new minimum salary threshold for Tier 2 (Intra-Company Transfer) of £41,500.
There is little doubt that these measures will substantially increase the cost of sponsoring non EEA employees.
For further guidance and assistance on business immigration matters, please contact our team.
An employment law masters’ graduate with extensive experience in employee relations and negotiations, Helen helps the employment team across areas such as legal research, drafting employment policies and tribunal preparation. She also advises businesses on immigration matters and assists them with securing sponsorship licences. Prior to joining the firm she gained experience in collective consultation and redundancy and restructuring exercises and has also worked as a legal researcher for an employment law barrister.
Our legal experts have been busy sharing valuable expertise in their first series of free webinars for employers, and businesses across the county who missed the live events can now…
The Coronavirus Business Interruption Loan Scheme (CBILS) has thrown a much-needed lifeline to businesses experiencing cashflow difficulties as a result of the coronavirus outbreak. 17 December 2020 Today, Rishi Sunak…
The global outbreak of coronavirus (COVID-19) and the government’s resulting emergency measures have had severe implications for many businesses. Read on for answers to some frequently-asked questions on corporate &…
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL cookies.
This website uses cookies to improve your experience while you navigate through our website. Out of these cookies, the cookies that are categorised as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyse and understand how you use our website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies but it may affect your browsing experience on our website. You can find our cookie policy here.
Necessary cookies are absolutely essential for our website to function and enable core functionality such as security and accessibility. These cookies do not store any personal information. You can block these cookies by changing your browser settings, but this may affect how the website functions.
We use performance cookies such as Google Analytics to help us count the number of visitors and to see how visitors move around our website when they are using it. This helps us to improve the way our website works, for example, by ensuring that users are finding what they are looking for easily. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our cookie policy.