When looking to employ foreign workers in the UK, obtaining a Sponsor Licence is a crucial step. The cost of acquiring and maintaining this licence can range from £536 to £1,476, depending on your organisation’s size and the type of licence. You should consider not just the application fees but also ongoing costs for compliance and management.
As a small or charitable organisation, you might be able to apply for a Worker Licence for £536. Medium or large organisations, however, face a higher fee of £1,476. Additionally, if you plan to sponsor multiple employees, there are costs related to the Certificate of Sponsorship and charges for hiring foreign workers, which could increase your overall expenses significantly.
Understanding the financial commitment involved is essential for effective planning. As you navigate the process, it’s important to stay informed about all potential costs to ensure that your organisation remains compliant while supporting your hiring needs.
Understanding Sponsor Licences
A sponsor licence allows UK businesses to employ foreign workers. There are different types of licences, eligibility criteria, and a specific application process to follow. Knowing these factors helps you navigate sponsorship successfully.
Types of Sponsor Licences
There are mainly two types of sponsor licences: Worker Licences and Temporary Worker Licences.
- Worker Licences are for individuals in skilled roles, such as skilled workers, senior or specialist workers, and religious or charity workers. These roles typically require a long-term commitment.
- Temporary Worker Licences are for short-term roles. They include categories like charity workers and youth mobility schemes. This type is suitable for roles that are seasonal or for less than a year.
Choosing the right type is crucial as it affects your application process and costs.
Eligibility Criteria
To apply for a sponsor licence, your business needs to meet certain criteria set by the Home Office.
- Your annual turnover should typically be £10.2 million or less or your total assets should be worth £5.1 million or less to qualify as a small sponsor.
- You must be able to demonstrate a genuine need for the role you wish to fill. This involves providing evidence that you can’t find suitable candidates within the UK labour market.
Additionally, your company must comply with all relevant laws and hold a good record of compliance to qualify.
Sponsor Licence Application Process
The application process begins with an online application to the Home Office.
- Start by gathering all necessary supporting documents, which may include financial statements and proof of your business operations.
- Submit a submission sheet that outlines your application details.
- Make sure all documents are in PDF format, and any foreign documents must have a certified translation.
After submission, you may undergo a compliance visit to assess your business’s ability to meet sponsorship duties. Understanding this process ensures you are well-prepared for any checks and can maintain your licence effectively.
Financial Considerations
Understanding the costs associated with obtaining and maintaining a Sponsor Licence is crucial for your business. You need to evaluate both the initial fees and ongoing expenses to ensure compliance and budget effectively.
Sponsor Licence Fees
When applying for a Sponsor Licence, there are key fees to consider. The primary Sponsor Licence Fee varies depending on the size of your organisation.
- Small or Charitable Sponsors: £536
- Medium or Large Sponsors: £1,476
You will also need to pay for each Certificate of Sponsorship (CoS), which costs £239. Additionally, the Immigration Skills Charge applies when hiring foreign workers. This charge is £364 for the first year and £182 for each subsequent six months if you’re a small or charitable sponsor. Larger organisations face higher charges.
Ongoing Costs
After securing your licence, there are ongoing costs to keep in mind. These include charges for the Immigration Skills Charge for each sponsored worker.
Your organisation must also budget for potential compliance visits by the Home Office, which may incur costs related to preparing documentation. You should also factor in visa application costs for each skilled worker you employ, as these can add to your financial commitments over time.
Consider using premium services for expedited processing, which may involve additional fees but can save time and reduce potential delays in hiring. This proactive approach helps manage your overall financial responsibility in corporate immigration.
Maintaining Sponsor Licence Compliance
Maintaining compliance with your sponsor licence is essential for your business and its ability to employ foreign workers. This includes fulfilling your sponsor duties, preparing for potential audits, and ensuring your licence is renewed on time.
Fulfilling Sponsor Duties
As a sponsor, you must understand and meet various duties laid out in the Immigration Rules. These responsibilities include keeping accurate records of your sponsored employees. You should maintain up-to-date information about their roles, addresses, and right to work in the UK.
You also have reporting duties for any changes regarding your workers. If a worker leaves, you must report this to the Home Office within a specific timeframe. Failure to fulfil these sponsorship duties can lead to a downgrade in compliance ratings, such as moving from an A-Rating to a B-Rating, which could affect your ability to sponsor new employees.
Dealing with Audits and Visits
The Home Office may conduct compliance visits to ensure you adhere to the necessary regulations. During these visits, a caseworker will review your records and practices. It’s crucial to be prepared by organising your documentation, such as right-to-work checks and records of any training provided to sponsored employees.
Responding to any findings promptly is vital. If a compliance issue arises, you may need to implement corrective measures to maintain your licence. Keeping an open line of communication with the Home Office can also help in resolving any concerns that come up during audits.
Upgrading and Renewing Licences
Renewal of your sponsor licence is essential to continue hiring foreign workers. Check your licence start and end date regularly. You should apply for renewal at least a few months before your licence expires to avoid any gaps in your sponsorship capabilities.
When upgrading from a temporary worker to a full worker licence, ensure that you meet all the necessary criteria. This includes fulfilling any compliance requirements and submitting accurate applications for Certificate of Sponsorship (CoS). Keeping all relevant documentation and records will facilitate a smooth renewal or upgrade process, allowing your business to sustain its workforce effectively.
Your Immigration Journey Starts Here – Trust Buckingham Legal Associates to navigate the complexities of UK immigration. Our experienced team is ready to assist with partner visas, global business visas, and sponsored licenses. Reach out today and take the first step towards a successful application.