Grasping the Concept of the Immigration Skills Charge: Essential Information for Employers!
Cracking the Immigration Skills Charge: What You Need to Know
Welcome to our no-holds-barred guide on the Immigration Skills Charge (ISC), that pesky levy slapped on UK employers who sponsor overseas workers. Here's the lowdown, straight from the trenches.
First things first, what's the ISC got to do with you, you ask? Well, if you're a boss hankering to hire international talent under the Skilled Worker route, you're gonna wanna shell out for this charge, baby. It's just another expense to add to your visa sponsorship costs, like the Certificate of Sponsorship assignment fee, UKVI application fee, and the Immigration Health Surcharge.
Now let's get down to nitty-gritty details. The ISC costs vary for different employers based on their size and the length of the worker's employment.
- Bigwigs and Cash Cows: Large employers (those with an annual turnover exceeding £10.2 million, total assets worth £5.1 million or more, and employing more than 50 people) dish out £1,000 per year for each sponsored worker. 'Cause let's face it, they've got the dough to spare.
- Small Fry and Non-Profits: Fear not, small businesses and charities! You'll only be charged £364 per year per sponsored migrant worker - a significant saving compared to the big boys.
- Keep in mind that the ISC is levied per worker per year, and you gotta pay upfront when the Certificate of Sponsorship (CoS) is assigned.
Kicking over the pillow talk on exemptions now. While the ISC is not exactly a walk in the park, there are some cracks where you can squeeze through to get a break. Certain PhD-level occupations, clergy, sports players, coaches, instructors, and officials are exempt from the ISC. Additionally, employers can secure exemptions for certain Global Business Mobility Senior or Specialist Workers, those switching from the Student route to the Skilled Worker route, and those granted Tier 2 permission prior to 6 April 2017.
Now, what if you're looking for a refund? Lucky you! You can get a refund in certain circumstances, like if the visa application is refused or withdrawn, or if the CoS is not used at all. Employers may also be eligible for a partial refund if the worker leaves early or if the ISC was overpaid. But remember, refunds might take up to 90 days, so factor this into your cash flow planning.
So, here's the skinny on passing the charge onto the employee - a big fat no-no! Home Office guidance states that employers are not allowed to recoup the ISC from the sponsored worker. Any attempt to do so could lead to compliance action against the sponsoring organization, potentially resulting in the revocation of the sponsor license.
By understanding the costs, exemptions, and refund options, employers can make informed financial decisions and ensure full compliance with immigration laws when sponsoring skilled workers. Game on, mates! 🤘🏽
Added for good measure:
- The ISC costs currently stand at £1,000 for large employers and £364 for small employers/charities. A 32% increase is planned but yet to be implemented.
- Other related costs, such as visa application fees and salary thresholds for Skilled Worker visas, are also rising in 2025.
- No specific categories of workers or employers are exempt from the ISC, aside from those listed as per the sources.
- The ISC must be paid for every sponsored worker, is non-refundable, and oversees a wide range of industries and professions.
Stay strong and keep hustling! 🚀💥😎
- If your business is looking to expand by hiring international talent, it's essential to factor in the Immigration Skills Charge (ISC) as part of your business finance, since it applies to UK employers sponsoring overseas workers under the Skilled Worker route.
- The ISC is not only a cost that business owners need to consider for visa sponsorship, but it also varies for different employers based on their size and the length of the employee's tenure, making it a crucial element in business financial planning.
