Navigating the UK’s complex immigration system, especially attempting to apply for a sponsor licence, is both time-consuming and costly. Most businesses are keenly interested in cost management, ensuring that budgets are well spent to secure the desired results with Home Office regulations. This article will outline the varying costs associated with securing a sponsor licence and discuss several strategies that can help one reduce these costs while striving to add maximum value to the business.
Understanding Sponsor Licence Costs
Sponsoring a foreign worker: the first step is obtaining a sponsor licence, and the following costs will be applicable. How much you pay for a sponsor licence requirement depends on the size and type of your business. If you are a small business or a charity, you will need to pay £53. If you have a larger company, this fee will be £1,476. Fortunately, this is now a one-off because sponsor licence no longer need to be renewed every four years. All other expenses for maintaining the licence and keeping in compliance with the rules will add up over time.
Once the licence is obtained, of course, there are further costs to hire the worker, including the Certificate of Sponsorship charge of £239 per worker and the Immigration Skills Charge, plus the visa application fee. The Immigration Skills Charge alone is £364 per year for small businesses and £1,000 per year for larger companies per sponsored worker.
One must also consider the visa application fee and Immigration Health Surcharge. For a worker in a non-shortage occupation, the same three-year visa could cost £719, and IHS could add as much as £1,035 per year.
Watch this video that talks about all the details that revolve around a sponsor licence application.
Strategies to Minimise Expenses
Sponsorship Requirement Evaluation: First and foremost, it is very important to consider whether the business actually requires sponsorship. If the required skill set can be available within the domestic workforce, hiring workers locally is cheaper. If international talent is crucial, then that route may be pursued, but at least the costs involved would be clear.
Optimise Certificate of Sponsorship Use: When the spending on the Certificates of Sponsorship can be minimised by carefully planning where CoS is granted only when absolutely needed, and all roles must meet the criteria for sponsorship.
Take Advantage of the Small Business Rate: If your company qualifies as a small business per the company Criteria, include annual turnover no higher than £10.2 million, a balance sheet total higher than £5.1 million, and no more than 50 employees sure you file as such in order to cut down on fees.
Immigration Skills Charge: This is a cost that your organisation must pay if it works in an industry that often employs international talent. Consider the long-term financial implications and ways of rebalancing these costs. Apply for grants or other financial support available to businesses.
Avoid Sponsor Licence Suspension: Failure to meet sponsor licence application obligations can lead to sponsor licence suspension, which can slow down recruitment of overseas workers and may require additional costs to reinstate. Therefore, HR practices must be periodically reviewed and updated to stay tuned to Home Office requirements. Periodical audits may also be considered.
Utilise Professional Guidance: Indeed, taking professional advice from immigration law experts such as A Y & J Solicitors will add value to ensure that the application process goes smoothly and efficiently and avoid costly mistakes that could lead to a sponsor licence suspension or any other penalty.
Tips for Maximising Value
Whilst the cost of a sponsor licence can be highly expensive, the value to your business by opening up the talent pool to the rest of the world often far outweighs such costs. To gain maximum value:
Long-Term Recruitment Planning: A strategic utilisation of the sponsor licence will involve planning your long-term recruitment needs, enabling you to spread these costs over several hires and, thus, making each recruitment cycle more cost-effective.
Comply and Invest: Good compliance will not only ensure that you do not have your sponsor licence suspended but also provide a good reputation as a reliable employer for top international talent to come your way.
Crunching the Skills of the Sponsored Workers: The international workers that you hire should bring unique skills that offer significant value to your business’s operations and justify the investment made in securing their employment.
Conclusion
Although there is a range of costs related to securing and renewing a sponsorship licence, these can be minimised, and the value that comes to your business thereby maximised through effective planning and management. A Y & J Solicitors offer professional guidance to businesses through the complicated process of a sponsor licence application, ensuring that this is both smooth and compliant and that you get the very best from your investment in global talent. Read more related in the business category.
