Right to Work While a UK Visa Application is Pending
Understanding the true cost of a UK sponsor licence is essential for any organisation planning to hire overseas workers. While many employers focus on the headline application fee, the reality is far more complex.
Understanding the true cost of a UK sponsor licence is essential for any organisation planning to hire overseas workers. While many employers focus on the headline application fee, the reality is far more complex. Sponsor licence costs extend well beyond the initial payment and include ongoing compliance obligations, Home Office charges, and operational expenses that continue throughout the life of the licence.
This article provides a detailed and practical overview of sponsor licence fees in 2026, written from the perspective of immigration practice and compliance. It explains what employers must pay, when those costs arise, and how to plan effectively to remain compliant under UK immigration law.
Key Takeaways
- Sponsor licence costs go far beyond the application fee and include ongoing compliance, reporting, and monitoring obligations.
- Fees vary by organisation size, with medium and large sponsors paying significantly more than small or charitable sponsors.
- The Immigration Skills Charge is one of the highest ongoing costs and must be paid upfront for each sponsored worker.
- Employers cannot recover sponsor licence or compliance costs from workers under any circumstances.
- Poor compliance can lead to licence suspension, revocation, and serious disruption to business operations.
What Is a UK Sponsor Licence?
A sponsor licence is a formal authorisation issued by the Home Office allowing a UK organisation to employ non-UK nationals under specific immigration routes. Without a valid licence, an employer cannot sponsor a worker for a Skilled Worker visa, Senior or Specialist Worker visa, or most other work-based routes.
The licence confirms that the organisation is genuine, trading lawfully, and capable of meeting its ongoing sponsor duties. These include monitoring sponsored workers, reporting changes to UK Visas and Immigration, and maintaining accurate records.
A sponsor licence is not a one-off approval. It creates an ongoing regulatory relationship with the Home Office, which carries both financial and operational responsibilities.
Types of Sponsor Licence Available
Before looking at fees, it is essential to understand the different licence types, as costs vary by category.
Most employers apply for one or more of the following:
- Worker licence, covering routes such as the Skilled Worker and Senior or Specialist Worker routes
- Temporary Worker licence, used for short-term or sector-specific visa categories
- Combined licence, allowing sponsorship under both the worker and temporary worker routes
The type of licence directly affects the sponsor licence cost, the structure of the application, and the compliance obligations that follow.
Sponsor Licence Application Fees
The sponsor licence application fee is the first mandatory cost and must be paid at the time of submission. The amount depends on the organisation’s size and the licence type.
Current Sponsor Licence Fees
- Small or charitable sponsor: £574
- Medium or large sponsor: £1,579
You pay the same fee whether you apply for a worker licence, a temporary worker licence, or both at once. If you submit a combined application, only one application fee is required.
The Home Office determines whether an organisation qualifies as a small sponsor based on turnover, total assets, and employee numbers. If you exceed the thresholds, you will be treated as a medium or large sponsor for fee purposes.
How the Home Office Defines Sponsor Size
Understanding sponsor size is critical, as the licence cost increases significantly for medium or large sponsors.
An employer is usually classed as a small sponsor if at least two of the following apply:
- Annual turnover of £15 million or less
- Total assets of £7.5 million or less
- 50 employees or fewer
Charities registered in England, Wales, Scotland, or Northern Ireland are treated as small or charitable sponsors for fee purposes.
If these thresholds are exceeded, the employer is treated as a medium or large sponsor, and the higher sponsor licence application fee applies.
Also read: How to Apply for a UK Sponsor Licence: Step-by-Step Process
Priority Processing for Sponsor Licence Applications
Employers who need a faster decision may request priority processing after submitting the sponsorship licence application.
Priority processing is available for an extra £750 and is designed to provide a decision within approximately 10 working days. Availability is limited each day, with requests accepted on a first-come basis.
Paying for priority processing only accelerates the decision timeline; it does not influence the outcome. If the application is refused, the priority fee is not refunded under any circumstances.
Certificate of Sponsorship Fees
Once a sponsor licence is granted, the employer must assign a Certificate of Sponsorship (CoS) for each sponsored worker.
A Certificate of Sponsorship is a digital record issued through the Home Office system rather than a physical document. It confirms that the role meets sponsorship requirements and allows the worker to apply for their visa.
Certificate of Sponsorship Fees
- Defined or Undefined CoS: £525 per certificate
This fee applies each time a new certificate is assigned, whether for a new hire or for an extension of an existing worker’s stay.
The CoS fee is separate from the sponsor licence application fee and must be paid for every sponsored worker.
Immigration Skills Charge
The Immigration Skills Charge (ISC) represents one of the highest ongoing costs for sponsors.
This charge is payable for most Skilled Worker and Senior or Specialist Worker visas and is intended to encourage investment in the UK workforce.
Immigration Skills Charge Rates
- Small or charitable sponsor: £480 per sponsored worker per year
- Medium or large sponsor: £1,320 per sponsored worker per year
The employer must pay the full charge upfront, based on the length of sponsorship stated on the Certificate of Sponsorship.
Additional Compliance and Operational Costs
Beyond government fees, employers must budget for ongoing compliance obligations that arise throughout the lifecycle of the licence.
These include:
- HR systems to track visa expiry dates and work conditions
- Secure document storage for right-to-work evidence
- Staff training on sponsorship duties
- Internal audits and compliance reviews
- Professional advice for complex cases or Home Office inspections
For many organisations, these costs exceed the headline application fee and form the bulk of long-term expenditure.
Need Advice on Sponsor Licence?
Mistakes in a sponsor licence application can trigger serious action by the Home Office. At Gulbenkian Andonian Solicitors, our team of Sponsor Licence Lawyers delivers practical, business-focused guidance on sponsor licence applications, ongoing compliance responsibilities, and effective risk management. We work with employers who want certainty, speed, and a strategy that protects their ability to sponsor workers long term.
If you need immediate legal guidance from professionals who understand the realities of Home Office enforcement, contact us today.
FAQs
You can usually continue working if you submitted an in-time visa application before the BRP expired, and section 3C leave applies. Your previous visa conditions remain in force until the Home Office makes a decision. If the application was out-of-time, you lose the right to work until a new leave is granted.
Employers may pause your role if they cannot verify your right to work through the Home Office online service or the Employer Checking Service. This is a compliance decision rather than an immigration enforcement action. Once verification is confirmed, employment can continue.
If the Home Office refuses the application and you have no further review or appeal rights, section 3C leave ends, and you must stop working immediately. Employers must terminate employment or risk civil penalties. If an appeal or administrative review is filed in time, section 3C may continue work rights during the review period.
Most in-country applications are treated as withdrawn if you travel. Once withdrawn, section 3C leave ends, and so do associated work rights. You must then apply from outside the UK and wait for a new grant of leave before working again.
No. An application reference number alone is not sufficient. Employers must complete a compliant right to work check, either online or through a Positive Verification Notice issued by the Employer Checking Service.