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The True Cost of Your 5-Year UK Visa Sponsorship: Full Breakdown of IHS, Application Fees, and CoS Costs

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Securing a UK Skilled Worker visa represents one of the most significant financial investments an individual or employer will make in an international career move. While many people focus solely on the headline visa application fee, the true cost of UK visa sponsorship extends far beyond this single charge. Between Immigration Health Surcharge payments, Certificate of Sponsorship fees, Immigration Skills Charge obligations, priority services, legal fees, and various hidden costs, the total expenditure for a 5-year UK visa sponsorship can reach staggering amounts that catch applicants and employers off guard.

This comprehensive guide breaks down every fee, charge, and cost associated with obtaining and maintaining a 5-year UK Skilled Worker visa. Whether you’re an individual planning your move to the UK or an employer budgeting for international recruitment, understanding the complete financial picture is essential for accurate planning and avoiding unwelcome surprises during the application process.

Understanding the UK Skilled Worker Visa Framework

The Skilled Worker visa replaced the Tier 2 (General) visa in December 2020 as part of the UK’s new points-based immigration system implemented post-Brexit. This visa route allows skilled workers from anywhere in the world to come to the UK to work for an approved sponsor in an eligible occupation. The visa can be granted for up to 5 years at a time, after which it can be extended, or the holder may be eligible to apply for Indefinite Leave to Remain (permanent residence).

The financial structure of this visa involves costs borne by both the employee (visa applicant) and the employer (sponsor). Some costs are mandatory and set by UK Visas and Immigration, while others are optional services or variable expenses depending on individual circumstances. Understanding who pays what, and when these payments are due, is crucial for both parties in the sponsorship relationship.

The Employee’s Direct Costs: What Visa Applicants Pay

Visa Application Fee: The Primary Charge

The visa application fee represents the most visible cost in the process and varies significantly based on several factors including the length of visa requested, whether the applicant is applying from inside or outside the UK, and whether the occupation is on the Immigration Salary List (formerly Shortage Occupation List).

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For a standard Skilled Worker visa application made from outside the UK for a position lasting up to 3 years, the fee is £719. For positions lasting more than 3 years (including 5-year applications), the fee increases to £1,420. These fees apply to occupations not on the Immigration Salary List and represent the standard rate most applicants will pay.

For occupations listed on the Immigration Salary List—roles where the UK faces genuine skills shortages—the fees are reduced. A Skilled Worker visa for an Immigration Salary List occupation costs £551 for up to 3 years or £1,084 for more than 3 years. This discount recognizes that workers filling shortage occupations provide particular value to the UK economy.

Applications made from within the UK (when switching from another visa category or extending an existing Skilled Worker visa) face higher fees. An in-country extension or switch for up to 3 years costs £827, while applications for more than 3 years cost £1,500. Immigration Salary List occupations receive the same proportional discount, paying £551 for up to 3 years or £1,084 for more than 3 years.

For a 5-year Skilled Worker visa application made from outside the UK in a standard occupation, the applicant pays £1,420 in visa application fees alone—a substantial sum before considering any other costs.

Immigration Health Surcharge: The Largest Single Cost

The Immigration Health Surcharge (IHS) typically represents the single largest expense in the UK visa process, often exceeding the visa application fee itself. The IHS is a mandatory payment that grants visa applicants access to the National Health Service (NHS) during their stay in the UK. While the charge is substantial, it does provide comprehensive healthcare coverage comparable to what UK residents receive, including GP visits, hospital treatment, emergency care, and most medical services.

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The standard IHS rate is £1,035 per year for most visa categories, including the Skilled Worker visa. For a 5-year visa, this means an upfront payment of £5,175 (£1,035 × 5 years). This payment must be made in full at the time of visa application and cannot be paid in installments. The IHS is calculated based on the total visa duration, including any partial years—if your visa is for 5 years and 2 months, you pay for 6 years.

Certain applicants qualify for discounted IHS rates. Students and their dependents, as well as individuals on the Youth Mobility Scheme, pay a reduced rate of £776 per year. However, Skilled Worker visa applicants do not qualify for this discount unless they’re switching from a Student visa, in which case the discount applies only to the remainder of their student visa period.

Health and care workers in eligible occupations benefit from complete IHS exemption. If you’re sponsored for a role in the health or care sector with an occupation code listed in the health and care worker exemption list, you pay no IHS at all—a saving of £5,175 over 5 years. Eligible occupations include nurses, doctors, paramedics, social workers, and various other healthcare professionals. This exemption recognizes the contribution these workers make to the NHS itself.

For a standard 5-year Skilled Worker visa applicant not eligible for exemptions, the IHS represents a £5,175 mandatory cost, making it the largest single fee in the entire process.

Dependent Visa Costs: Multiplying the Expenses

Many visa applicants bring family members to the UK, and each dependent requires their own visa and IHS payment, multiplying total costs significantly. Dependents include spouses or partners, children under 18, and in some cases, adult children if they were already dependents before turning 18.

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Each dependent pays the same visa application fee as the main applicant: £1,420 for a 5-year visa from outside the UK (or £1,084 if the main applicant’s job is on the Immigration Salary List). They also pay the full IHS of £1,035 per year, totaling £5,175 for 5 years. There is no family discount—each person pays full price.

Consider a family of four: two parents and two children. If the primary applicant secures a 5-year Skilled Worker visa, the total costs for visa fees and IHS are:

Total for the family: £26,380 in visa fees and IHS alone for 5 years. This staggering sum represents more than two years of full-time minimum wage earnings in the UK and must be paid upfront before any family member can enter the country.

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English Language Testing: Proving Language Proficiency

Unless exempt, Skilled Worker visa applicants must demonstrate English language proficiency at CEFR Level B1 (equivalent to IELTS 4.0) or higher. Exemptions apply to nationals of majority English-speaking countries (USA, Canada, Australia, New Zealand, etc.) and those who completed degrees taught in English at institutions in majority English-speaking countries.

For applicants who need to take a language test, the cost varies by test provider and location. IELTS (International English Language Testing System) costs approximately £170-£200 in most countries. Some applicants take the test multiple times to achieve required scores, multiplying this cost. Tests must be from approved providers (IELTS UKVI, Trinity College London, or Pearson PTE), and results are typically valid for 2 years.

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Academic credential verification may be required if you’re claiming English language exemption based on a degree taught in English. The UK NARIC service charges approximately £210 to verify and confirm that a degree was taught in English, an often-overlooked cost for graduates of non-UK institutions.

Priority and Super Priority Processing: Paying for Speed

Standard visa processing times are approximately 3 weeks for applications made outside the UK. Many applicants cannot afford to wait this long due to job start dates, family commitments, or other time pressures. UK Visas and Immigration offers expedited processing services for substantial additional fees.

Priority Service reduces processing time to approximately 5 working days and costs an additional £500 per application. Super Priority Service aims to process applications by the end of the next working day (if applied before 3 PM on a working day) and costs £1,000 per application. These services are available for both main applicants and dependents, with each person requiring their own priority payment.

For a family of four all requiring Super Priority processing, the additional cost is £4,000 (£1,000 × 4 people) on top of all other fees—bringing the total costs for that family’s 5-year visas to over £30,000 when combined with visa fees and IHS.

It’s important to note that priority services only expedite the decision-making process, not the time required to collect biometrics, submit documents, or receive your visa vignette. The standard service processes most applications within the 3-week timeframe, and many applicants find the standard service adequate with proper planning.

Biometric Enrollment and Documentation Costs

All visa applicants must provide biometric information (fingerprints and photograph) at a Visa Application Centre (VAC) or using the UK Immigration: ID Check app for eligible applications. While biometric enrollment itself is included in the visa application fee, related services incur additional charges.

The Document Scanning Service, offered at VACs, allows applicants to submit documents digitally rather than mailing original passports and supporting documents. This service costs approximately £60-£150 depending on location and quantity of documents, but provides peace of mind by allowing you to retain original documents throughout the process.

Keep and Return Service ensures your original documents are returned via courier after processing rather than regular mail. This service costs approximately £19.20 and provides tracking and security for valuable documents like passports, birth certificates, and marriage certificates.

Many applicants also face translation costs. All documents not in English or Welsh must be accompanied by certified translations. Professional translation services charge £20-£40 per page, and visa applications commonly require translations of birth certificates, marriage certificates, educational credentials, employment references, and bank statements. A typical application might incur £200-£500 in translation costs.

Travel Costs for Visa Application

Applicants must travel to a Visa Application Centre to provide biometrics and submit their application. For applicants living far from major cities with VACs, this can involve significant travel costs including flights or long-distance train/bus tickets, accommodation if overnight stay is required, meals and incidentals during travel, and potentially time off work for travel days.

In some countries, mobile biometric enrollment services are available for an additional fee (typically £200-£400), allowing the VAC to come to your location rather than requiring travel. For applicants in remote areas or with mobility difficulties, this service can be cost-effective despite its expense.

Financial Requirement Evidence and Banking Costs

Skilled Worker visa applicants must sometimes demonstrate they have sufficient funds to support themselves in the UK. The requirement is typically £1,270 held in a bank account for at least 28 consecutive days, with bank statements dated no more than 31 days before the visa application. This requirement can be waived if the sponsor certifies they will maintain and accommodate the applicant for the first month of employment.

Obtaining the required bank statements may incur charges from your bank, particularly for certified or stamped statements on official letterhead. Some banks charge £10-£50 for such statements. If statements are not in English, they require certified translation, adding further costs.

Some applicants need to move money between accounts or currencies to meet the requirement, potentially incurring foreign exchange fees, transfer charges, or opportunity costs from holding funds in low-interest accounts during the 28-day period.

The Employer’s Costs: What Sponsors Pay

Sponsor License: The Entry Requirement

Before an employer can sponsor any workers, they must obtain a sponsor license from UK Visas and Immigration. This one-time application involves significant cost and administrative effort. The sponsor license fee is £536 for small companies and charities or £1,476 for medium and large companies. These fees cover the initial application, and licenses remain valid until revoked or surrendered.

Small company status is defined by meeting at least two of these criteria: turnover not exceeding £10.2 million, balance sheet total not exceeding £5.1 million, or no more than 50 employees. Most small businesses and startups qualify for the reduced rate.

Beyond the application fee, obtaining a sponsor license typically requires legal assistance. Immigration lawyers charge £2,000-£8,000 to prepare sponsor license applications, review HR systems and compliance procedures, draft sponsor management statements and policies, and train staff on sponsorship duties. While not legally required, professional assistance significantly increases approval chances and ensures proper compliance setup from the start.

The license application process takes approximately 8 weeks, during which the business cannot sponsor any workers. This timeline must be factored into recruitment planning, as international candidates cannot start work until the license is approved and their visas are granted.

Certificate of Sponsorship (CoS): Per-Employee Charge

For each worker sponsored, employers must assign a Certificate of Sponsorship—essentially an electronic document containing information about the job, employee, and sponsor. Each CoS costs £239 regardless of visa duration or salary level. This is a one-time fee per sponsorship, though if the visa is later extended, a new CoS (and new £239 fee) is required.

For a 5-year initial visa, the employer pays £239 for the CoS. If the employee extends for another 5 years, the employer pays another £239 for a new CoS for that extension. Over a 10-year period leading to settlement eligibility, the employer would pay £478 in CoS fees per employee (assuming one initial visa and one extension).

Certificates of Sponsorship come from annual allocations. Unrestricted CoS are available for certain categories (workers extending existing visas, switching from other visa categories, or in Immigration Salary List occupations) and have no numerical limit. Restricted CoS for new workers from outside the UK are subject to monthly allocations, though in practice, allocations have been sufficient to meet demand in recent years.

Immigration Skills Charge (ISC): The Major Ongoing Cost

The Immigration Skills Charge represents one of the most substantial costs for employers sponsoring workers on Skilled Worker visas. Introduced in 2017, the ISC is designed to encourage investment in domestic workforce training while raising revenue for apprenticeship and skills programs.

The ISC is charged at £364 per year for small companies and charities or £1,000 per year for medium and large companies. For a 5-year sponsorship, this means:

The ISC is paid upfront when the CoS is assigned and covers the full duration of the sponsorship period. Like other costs, it must be paid again if the visa is extended—a 5-year extension means another £1,820 (small) or £5,000 (medium/large) payment.

Importantly, several exemptions from the ISC exist. PhD-level occupations (jobs with SOC codes starting with 211 or 212 requiring doctoral qualifications) are completely exempt. Workers switching from Student or Graduate visas to their first Skilled Worker visa are exempt. Workers under age 26 at the time of application are exempt. These exemptions can generate substantial savings for employers able to utilize them.

Ongoing Compliance and Administrative Costs

Sponsor license holders have ongoing duties that require dedicated staff time and resources. Sponsors must keep detailed records on sponsored workers including copies of right-to-work documents, contact details and current addresses, job titles and roles, dates of starting and ending work, and salary details. These records must be retained for the duration of sponsorship plus 6 years afterward.

Sponsors must report various events to UKVI within specified timeframes, typically 10 or 20 working days. Reportable events include sponsored workers stopping work (resignation, termination, or unauthorized absence exceeding 10 days), significant changes in job duties or work location, salary reductions below sponsored level, and changes in employee personal details.

Many employers assign a dedicated immigration coordinator or divide responsibilities among HR staff, legal teams, and line managers. For each sponsored employee, employers might spend 5-10 hours annually on compliance activities. At typical HR professional salary levels (£40,000-£50,000), this represents £100-£250 in staff time costs per sponsored employee annually, or £500-£1,250 over 5 years.

Larger sponsors often invest in immigration case management software (£2,000-£10,000 annually depending on number of users and features) to track sponsored workers, generate required reports, and maintain compliance records. While this seems expensive, it reduces manual administrative burden and minimizes compliance risk for companies with many sponsored workers.

Legal and Professional Fees

Most employers engage immigration lawyers to handle complex sponsorship situations, ensure compliance, and represent their interests in UKVI interactions. While not legally required, professional assistance provides valuable expertise and risk mitigation.

Typical legal fees for sponsorship matters include sponsor license applications (£2,000-£8,000 as mentioned earlier), Certificate of Sponsorship assignments and visa applications (£500-£2,000 per case), license compliance audits and training (£1,500-£5,000 annually), and urgent or complex cases (£200-£400 per hour for senior immigration lawyer time).

For a company sponsoring a single worker on a 5-year visa, legal costs might include sponsor license application (£3,000 average), initial CoS and visa support (£1,000), annual compliance review (£2,000 per year × 5 years = £10,000), and ad hoc advice (£1,000 over 5 years). This totals approximately £15,000 in legal fees over 5 years for a single sponsored employee—though much of this (particularly the license application cost) is amortized across multiple sponsored workers if the company sponsors several employees.

Hidden and Indirect Costs

Relocation and Settlement Support

While not mandatory, many employers provide relocation support to attract talented international candidates. Common relocation benefits include temporary accommodation (£2,000-£5,000 for first month), airfare for employee and dependents (£1,000-£5,000 depending on origin), shipping or freight allowance for household goods (£2,000-£8,000), and initial settling-in allowance for deposits, basic furniture, and essentials (£2,000-£5,000).

Comprehensive relocation packages offered by larger employers often total £10,000-£25,000 per employee, representing significant investment beyond direct immigration costs. Smaller employers might offer more modest support such as first month’s accommodation and flight reimbursement (£3,000-£8,000 total).

Some employers also provide ongoing support services including immigration advice and visa extension assistance, UK orientation and cultural training, assistance finding schools for children, and partner career support. While these services build loyalty and help employees settle successfully, they add to the total cost of international recruitment.

Opportunity Costs and Timeline Delays

The visa sponsorship process involves significant timelines that delay when employees can start work. From sponsor license application to employee’s visa grant can take 3-6 months, during which the position remains unfilled. For critical roles, this delay can cost thousands or tens of thousands in lost productivity, delayed projects, or interim contractor costs.

Additionally, the administrative burden of managing sponsorship diverts HR and management attention from other priorities. The time spent learning immigration regulations, preparing sponsorship documentation, monitoring compliance, and communicating with legal advisors represents opportunity cost that’s difficult to quantify but nevertheless real.

Currency Exchange and Payment Processing

Most UK visa fees must be paid in GBP (British pounds). International applicants paying from foreign bank accounts face currency exchange costs, international transaction fees, and potential exchange rate fluctuations between planning and payment. On a £6,595 visa application and IHS payment (standard 5-year visa), exchange rate margins and transfer fees might add £100-£300 to effective costs.

Some payment methods incur additional charges. Paying by credit card often involves 2-3% processing fees. International bank transfers might involve flat fees of £25-£50 from sending and receiving banks. These seemingly small charges add up across multiple payments throughout the process.

Insurance and Risk Mitigation

Some applicants or employers purchase immigration application insurance or legal expense insurance covering the cost of reapplication if a visa is wrongfully refused. These policies typically cost £200-£500 and provide peace of mind, though most applications are approved without issues.

Professional indemnity insurance for immigration advisors, required by law for anyone providing immigration advice for compensation, is paid by lawyers or advisors but ultimately reflected in their fees. This cost is indirect but contributes to the overall expense of professional immigration assistance.

Total Cost Calculations: Real-World Examples

Example 1: Single Professional, Standard Processing

A software developer from India securing a 5-year Skilled Worker visa with a London fintech company using standard processing:

Employee Costs:

Employer Costs:

Combined total: £10,911 for a single employee’s 5-year sponsorship with standard processing and no dependents.

Example 2: Family of Four, Super Priority Processing

A senior financial analyst from Nigeria securing a 5-year visa with a major London bank, bringing spouse and two children, using Super Priority processing:

Employee Costs:

Employer Costs:

Combined total: £54,349 for a family’s 5-year sponsorship with expedited processing and relocation support.

Example 3: Recent Graduate, ISC Exempt

A data scientist from the Philippines graduating from a UK university, switching from Student visa to Skilled Worker visa with a Manchester AI startup:

Employee Costs:

Employer Costs:

Combined total: £11,700 for a recent graduate’s sponsorship—notably with £0 ISC due to student-switching exemption, saving £1,820.

Example 4: PhD-Level Researcher

A biomedical researcher from South Korea with a PhD, hired for a 5-year research role at a London pharmaceutical company:

Employee Costs:

Employer Costs:

Combined total: £9,784 for a PhD researcher—with £1,820 or £5,000 ISC savings (depending on company size) due to PhD-level occupation exemption.

Strategies for Minimizing Total Costs

For Employees

Plan ahead and use standard processing rather than priority services whenever possible, saving £500-£1,000 per person. Standard 3-week processing is sufficient for most situations with proper planning.

Consider timing carefully—if you’re on a Student or Graduate visa, switching to Skilled Worker before age 26 allows your employer to avoid ISC, potentially making you a more attractive candidate. Similarly, switching directly from Student status qualifies for ISC exemption regardless of age.

Explore whether you qualify for any exemptions before paying. If you completed a degree in English, ensure proper documentation to avoid unnecessary language testing costs. If you’re from a majority English-speaking country, prepare evidence to support your exemption claim.

For families, carefully consider whether all dependents need to come immediately or if phased migration might be more cost-effective. Dependent visas can be added later, spreading costs over time, though this involves family separation considerations that may outweigh financial savings.

For Employers

Ensure you qualify as a small sponsor if your business meets the criteria, reducing ISC from £1,000 to £364 annually (64% savings). Monitor your company’s growth and report status changes, but maintain small sponsor status as long as legitimately qualified.

Target recruitment toward ISC-exempt categories when possible. Recent graduates of UK universities switching from Student visas, candidates under 26, and PhD-level positions (if genuinely applicable) eliminate ISC entirely. Build relationships with UK universities to access graduating international students.

Invest in proper compliance systems upfront to avoid penalties and license revocation. The cost of non-compliance far exceeds the cost of good systems. A single civil penalty for illegal working can reach £20,000—more than 10 years of ISC for a small sponsor.

Consider whether certain roles might be structured as PhD-level positions if they genuinely require doctoral-level expertise. This must be authentic—misrepresentation is illegal—but legitimate PhD-level classification eliminates ISC and may attract higher-caliber candidates.

Build immigration costs into offer packages and budgets from the start. Many employers under-budget for sponsorship costs, creating financial strain when actual expenses emerge. Comprehensive budgeting prevents surprises and allows accurate ROI calculations for international recruitment.

What Happens at Renewal: 5-Year Extension Costs

After the initial 5-year Skilled Worker visa expires, employees eligible to continue working typically apply for a 5-year extension. This extension involves many of the same costs as the initial application:

Employee pays:

Employer pays:

After 5 years on the Skilled Worker visa (or 10 years if extending), employees typically become eligible for Indefinite Leave to Remain (settlement), which costs £2,885 per person and eliminates future visa renewal costs. Most employees pursue settlement rather than further extensions, though ILR represents another significant expense.

Over a 10-year pathway to settlement (two 5-year Skilled Worker visas), total costs including initial visa, one extension, and ILR application can reach £20,000-£25,000 for the employee alone, with employer costs of £8,000-£15,000 depending on size and exemption eligibility.

Conclusion: Planning for the True Financial Investment

The true cost of a 5-year UK Skilled Worker visa sponsorship extends far beyond the headline visa application fee. When accounting for the Immigration Health Surcharge, Certificate of Sponsorship, Immigration Skills Charge, professional fees, administrative costs, and potential relocation support, the total investment commonly reaches £10,000-£15,000 for a single employee without dependents, and £30,000-£60,000 for a family with comprehensive support.

These substantial costs underscore the importance of thorough planning and budgeting for both employees and employers. For individuals, understanding total costs enables realistic financial preparation, including saving sufficient funds, negotiating relocation support with employers, and timing applications to minimize expenses. For employers, accurate cost understanding allows proper budgeting, informed hiring decisions, and strategic utilization of exemptions and cost-saving approaches.

Despite these significant expenses, the UK continues to attract talented workers from around the world, and employers continue to sponsor international talent. The investment reflects the value of accessing global talent pools, bringing specialized expertise into UK businesses, and building diverse, innovative teams. When planned properly and executed efficiently, UK visa sponsorship delivers returns that justify the financial commitment.

The key to managing these costs effectively lies in understanding all components, identifying applicable exemptions, planning timelines to avoid expensive expedited services, seeking professional advice for complex situations, and maintaining excellent compliance to protect the long-term investment. With comprehensive knowledge and strategic planning, both employees and employers can navigate the UK visa system successfully, making informed decisions that balance cost considerations with career and business objectives.

For those committed to working or hiring in the UK, these costs represent an investment in opportunity—access to one of the world’s leading economies, diverse cultural experiences, and professional development in globally recognized institutions. Understanding the full financial picture ensures this investment is made with clear expectations and proper preparation, maximizing the likelihood of a successful, rewarding UK work experience.

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