The Skilled Worker visa is the United Kingdom's main immigration route for employers who want to hire workers from outside the UK. For business owners, it is also the mechanism through which you can sponsor employees for your own company, including senior hires and specialists who are essential to your operations. Understanding the sponsor licence system, salary thresholds, and compliance obligations is essential for any UK employer that wants to access the global talent market.
This guide provides a complete overview of the Skilled Worker visa and sponsor licence system in 2026. It covers how to obtain a sponsor licence, the eligible occupations and salary thresholds, the application process for individual workers, switching between visa categories, settlement eligibility, and the compliance duties that come with being a licensed sponsor.
The Sponsor Licence
Before a UK employer can sponsor a Skilled Worker, it must hold a valid sponsor licence issued by UK Visas and Immigration (UKVI). The sponsor licence demonstrates that the organisation is a genuine business, has appropriate HR systems in place, and will fulfil its sponsorship duties.
Sponsor Licence Costs
| Sponsor Type | Licence Fee (GBP) | Valid For |
|---|---|---|
| Small or charitable sponsor | 536 | 4 years |
| Medium or large sponsor | 1,476 | 4 years |
A small sponsor is one that meets at least two of the following criteria: annual turnover not exceeding 10.2 million GBP, balance sheet total not exceeding 5.1 million GBP, and no more than 50 employees. Charities qualify for the small sponsor rate regardless of size.
Application Process for Sponsor Licence
- Register on the Sponsorship Management System (SMS). The Level 1 user (main point of contact) creates an account.
- Prepare supporting documents. These include evidence of the organisation's existence and trading activities, HMRC records, bank statements, and evidence of genuine vacancy.
- Submit the application online. Complete the application form and upload supporting documents.
- UKVI assessment. UKVI may conduct a pre-licence compliance visit to verify the information provided. Processing takes approximately 8 weeks.
- Licence granted. Upon approval, the organisation can begin issuing Certificates of Sponsorship (CoS) to prospective workers.
The sponsor licence application is scrutinised carefully, particularly for newly established companies and small businesses. UKVI will assess whether the vacancy is genuine, whether the company has the financial capacity to pay the sponsored worker, and whether appropriate HR systems are in place. Our analysts recommend preparing thoroughly before applying: ensure your company has clear job descriptions, an organisational chart, a staff handbook or HR policies, and evidence of your recruitment efforts. For guidance on company setup, see our UK company registration guide.
Salary Thresholds
The Skilled Worker visa has minimum salary requirements that vary based on the occupation and the worker's circumstances.
General Salary Thresholds
| Category | Minimum Salary (GBP) |
|---|---|
| General threshold | 38,700 per year |
| Going rate for the occupation | Varies (check SOC code) |
| Absolute minimum floor | 23,200 per year |
The worker must be paid the higher of the general threshold or the going rate for their specific occupation (as defined by the Standard Occupational Classification code). The going rate is set by the government and reflects the median salary for each occupation.
Reduced Thresholds
Certain categories of workers qualify for reduced salary thresholds:
| Category | Reduced Threshold | Details |
|---|---|---|
| New entrants | 30,960 GBP or 70% of going rate | Under 26, switching from student visa, or in a professional training programme |
| Immigration Salary List occupations | 30,960 GBP or going rate | Occupations on the government's list of jobs with reduced salary requirements |
| Health and education roles | Varies | National pay scales apply for NHS, education, and social care roles |
| PhD-relevant role | 34,830 GBP | Role requires a PhD relevant to the job |
| STEM PhD-relevant role | 30,960 GBP | Role requires a PhD in a STEM subject relevant to the job |
The Immigration Salary List
The Immigration Salary List (which replaced the Shortage Occupation List) identifies occupations where the salary threshold is reduced to 30,960 GBP. The list is regularly reviewed and updated. As of 2026, it includes various roles in healthcare, engineering, IT, and other sectors experiencing persistent skills shortages.
The salary threshold increase to 38,700 GBP (from the previous 26,200 GBP) in April 2024 was one of the most significant changes to the UK immigration system in recent years. This effectively priced out many entry-level and mid-level roles from the Skilled Worker visa route. Employers should carefully review whether their offered salary meets both the general threshold and the going rate for the specific occupation. Offering a salary below the required level will result in the visa application being refused. For guidance on structuring pay, see our salary and dividends guide.
Eligible Occupations
Not all occupations qualify for the Skilled Worker visa. The role must be classified at RQF Level 3 or above (equivalent to A-level standard). This covers a wide range of professional, technical, and skilled roles but excludes most unskilled or entry-level positions.
Each eligible occupation has a specific Standard Occupational Classification (SOC) code that determines the going rate and any special provisions. Common qualifying occupations include:
| SOC Code | Occupation | Going Rate (GBP) |
|---|---|---|
| 2136 | Software developers | 42,000 |
| 2139 | IT business analysts, architects, and systems designers | 42,000 |
| 2423 | Management consultants | 42,400 |
| 2421 | Chartered accountants | 39,000 |
| 3545 | Sales accounts managers | 32,000 |
| 2231 | Nurses | NHS pay scale |
| 2314 | Secondary school teachers | National pay scale |
| 2126 | Design and development engineers | 38,000 |
| 2461 | Marketing associate professionals | 32,000 |
The Certificate of Sponsorship (CoS)
Once a sponsor licence is granted, the employer can issue a Certificate of Sponsorship (CoS) to each worker they wish to sponsor. A CoS is not a physical document but an electronic record in the Sponsorship Management System containing details of the job, salary, and the worker's personal information.
Types of CoS
| CoS Type | For | Cost Per CoS |
|---|---|---|
| Defined CoS | Workers applying from outside the UK | 239 GBP |
| Undefined CoS | Workers switching or extending within the UK | 239 GBP |
Defined CoS are subject to annual allocation by UKVI, though in practice most sponsors receive allocations that meet their needs. Undefined CoS can be created as needed without prior allocation.
Immigration Skills Charge
In addition to the CoS fee, sponsors must pay the Immigration Skills Charge (ISC) for each sponsored worker:
| Sponsor Size | Charge Per Year | Charge for Full 5-Year Visa |
|---|---|---|
| Small or charitable | 364 GBP | 1,820 GBP |
| Medium or large | 1,000 GBP | 5,000 GBP |
The ISC is paid upfront at the time the CoS is assigned and is not refundable if the worker's visa application is refused or if the worker leaves the role.
Worker's Visa Application
Once the CoS is issued, the worker applies for the Skilled Worker visa from their home country or, if already in the UK on another visa, applies to switch.
Application Costs for the Worker
| Cost Item | Amount (GBP) |
|---|---|
| Visa application fee (up to 3 years) | 719 |
| Visa application fee (more than 3 years) | 1,420 |
| Immigration Health Surcharge (per year) | 1,035 |
| English language test (if required) | 150-200 |
| TB test (if required) | 50-100 |
The employer may choose to pay some or all of these costs on behalf of the worker, though there is no legal requirement to do so.
English Language Requirement
The worker must demonstrate English language ability at B1 level (CEFR) through an approved Secure English Language Test (SELT), or by holding a degree that was taught in English and is recognised by UK NARIC.
Processing Times
| Application Location | Standard Processing | Priority Service |
|---|---|---|
| Outside the UK | 3-8 weeks | 5 working days (where available) |
| Inside the UK (switching) | 8 weeks | 5 working days |
Sponsor Compliance Duties
Holding a sponsor licence comes with significant compliance obligations. UKVI conducts compliance visits (both announced and unannounced) and can downgrade, suspend, or revoke a sponsor licence for non-compliance.
Key Compliance Duties
Record-keeping. Sponsors must maintain copies of the worker's passport, biometric residence permit, contact details, National Insurance number, and evidence of right to work.
Reporting duties. Sponsors must report to UKVI within specified timeframes when:
- A sponsored worker does not start work on the expected date (within 10 working days)
- A sponsored worker is absent from work for more than 10 consecutive working days without authorised leave
- A sponsored worker's employment ends (within 10 working days)
- There are changes to the sponsor's circumstances (address, ownership, key personnel)
Preventing illegal working. Sponsors must conduct right-to-work checks before employment begins and at specified intervals.
Sponsor licence compliance is an area where many businesses underperform, particularly small companies sponsoring their first worker. The reporting requirements are detailed and time-sensitive, and failure to comply can result in licence revocation -- which means all sponsored workers lose their visa status. Our analysts strongly recommend designating a specific person as the compliance officer, implementing a tracking system for reporting deadlines, and conducting an internal audit at least annually. For broader employer obligations, see our UK employment law guide.
Switching and Extending
Switching to Skilled Worker from Another Visa
Many visa categories allow switching to the Skilled Worker visa from within the UK, including:
- Student visa (after completing studies)
- Graduate visa
- Global Talent visa
- Innovator Founder visa
- Family visas (in some circumstances)
- Intra-Company Transfer/Global Business Mobility
The worker applies to switch by submitting an in-country application. They can begin working for the sponsor as soon as the application is submitted (not just when it is decided), provided they already have valid permission to work.
Extending the Skilled Worker Visa
The Skilled Worker visa can be extended indefinitely as long as the sponsorship continues and the worker continues to meet the requirements. Each extension application requires a new CoS and payment of the ISC.
Settlement (Indefinite Leave to Remain)
After 5 years of continuous residence in the UK on a Skilled Worker visa (or a combination of qualifying routes), the worker can apply for Indefinite Leave to Remain (settlement).
ILR Requirements
| Requirement | Detail |
|---|---|
| Continuous residence | 5 years (absences of no more than 180 days in any 12-month period) |
| Current salary | Must meet the current general salary threshold (38,700 GBP) or going rate |
| Still sponsored | Must hold a valid CoS at the time of application |
| English language | B1 level (CEFR) |
| Life in the UK test | Must pass |
| Application fee | 2,885 GBP |
| No serious criminality | Must not have unspent criminal convictions |
The salary requirement for settlement is assessed at the time of the ILR application, using the thresholds in force at that time. This means a worker who was sponsored at a lower salary (for example, under a reduced threshold as a new entrant) must be earning at least the general threshold by the time they apply for settlement. Employers should plan salary progression accordingly if they want their sponsored workers to qualify for settlement. For visa routes with faster settlement, see our Innovator Founder visa and Global Talent visa guides.
Cost Summary for Employers
The total cost to sponsor a single Skilled Worker over 5 years (until settlement eligibility) is substantial:
| Cost Item | Small Sponsor (GBP) | Medium/Large Sponsor (GBP) |
|---|---|---|
| Sponsor licence (amortised per worker) | 134 (assuming 4 workers over 4 years) | 369 |
| CoS fee (initial + extension) | 478 | 478 |
| Immigration Skills Charge (5 years) | 1,820 | 5,000 |
| Total employer costs | 2,432 | 5,847 |
| Worker's visa fees (if employer pays) | 4,894-7,075+ | 4,894-7,075+ |
| Grand total | 7,326-9,507+ | 10,741-12,922+ |
Practical Considerations for Small Business Sponsors
Is Sponsoring Worth the Cost?
For small businesses, the total cost of sponsoring a single worker (2,400 to 5,800 GBP in employer costs alone, plus potential worker costs of 5,000 to 7,000 GBP) is significant. However, this must be weighed against the cost of an unfilled role, the salary premium required to attract domestic candidates for specialist positions, and the value that the right hire brings to the business.
In sectors experiencing skills shortages -- such as software development, engineering, healthcare, and specialised manufacturing -- the sponsor licence cost is often a worthwhile investment. For roles that are difficult to fill domestically, access to the global talent pool can be transformative for a growing business.
Managing Multiple Sponsored Workers
Sponsors with multiple workers should consider implementing a dedicated HR tracking system for immigration compliance. The reporting requirements apply to each sponsored worker individually, and missing a deadline for one worker can trigger an investigation that affects all sponsorships.
Alternatives to the Skilled Worker Route
Before committing to the sponsor licence process, employers should consider whether the prospective employee might qualify for alternative routes that do not require sponsorship:
| Route | Requires Sponsor | Key Advantage |
|---|---|---|
| Global Talent | No | No salary threshold, no sponsor needed |
| Graduate (post-study) | No | 2-year work right after UK degree |
| Youth Mobility Scheme | No | 2-year work right for eligible nationals |
| Family visa | No | Unrestricted work rights |
| Pre-settled/settled status (EU) | No | Full work rights |
For individuals with exceptional skills, the Global Talent visa can be a more cost-effective option as it requires no employer involvement. For entrepreneurs, the Innovator Founder visa provides a dedicated business creation route.
Impact of Immigration Policy Changes
UK immigration policy has undergone significant changes in recent years, including the substantial increase in salary thresholds in April 2024. Employers should monitor policy developments and factor potential changes into their workforce planning. Engaging an immigration solicitor or specialist adviser for ongoing guidance is a prudent investment for businesses that regularly sponsor workers.
The UK Skilled Worker visa system is designed to be straightforward for compliant sponsors, but the compliance burden should not be underestimated. Small businesses that invest in proper systems from the start -- designated compliance officers, tracking spreadsheets or software, and regular internal audits -- find the process manageable. Those that treat compliance as an afterthought often face costly problems, including licence downgrading or revocation, which affects all current and future sponsorships. For broader compliance guidance, see our UK business laws guide.
Conclusion
The Skilled Worker visa is the most widely used route for UK employers to hire from outside the UK. The process is well-defined but requires careful attention to salary thresholds, occupation eligibility, and ongoing compliance duties. For small businesses, the costs are significant but manageable when spread across multiple sponsored workers and multiple years.
The key to success is thorough preparation: ensure your salary offer meets the required thresholds, prepare your sponsor licence application with comprehensive evidence, and implement robust compliance systems from the start. The cost of losing a sponsor licence through non-compliance far exceeds the cost of maintaining proper records and reporting.
For alternative immigration routes, see our Innovator Founder visa guide and Global Talent visa guide. For broader business compliance, see our UK business laws guide.
Frequently Asked Questions
How much does a UK sponsor licence cost?
A sponsor licence costs 536 GBP for small or charitable sponsors and 1,476 GBP for medium or large sponsors. The licence is valid for 4 years and must be renewed before expiry. In addition to the licence fee, sponsors must pay the Immigration Skills Charge of 364 GBP per year for small sponsors or 1,000 GBP per year for medium and large sponsors for each sponsored worker.
What is the salary threshold for a Skilled Worker visa?
The general salary threshold is 38,700 GBP per year or the going rate for the specific occupation, whichever is higher. Reduced thresholds apply in certain circumstances: new entrants to the labour market (30,960 GBP or 70% of the going rate), jobs on the Immigration Salary List (30,960 GBP), and certain health and education roles. The minimum salary floor is 23,200 GBP regardless of any discounts.
How long does the Skilled Worker visa last and can it lead to settlement?
The Skilled Worker visa can be granted for up to 5 years at a time and can be extended indefinitely as long as the sponsorship continues. After 5 years of continuous residence on a Skilled Worker visa, the holder can apply for Indefinite Leave to Remain (settlement), provided they meet the salary threshold (currently 38,700 GBP), pass the Life in the UK test, and meet the English language requirement.
Can a small business get a sponsor licence?
Yes. There is no minimum company size to obtain a sponsor licence. Even a single-director limited company can apply. However, the business must demonstrate that it is genuine, operating lawfully, and has a genuine vacancy that requires a skilled worker. UKVI will assess whether the company has appropriate HR systems to manage sponsorship duties, including record-keeping and reporting obligations.