Immigration Skills Charge (ISC)
As an employer, you may have to pay the Immigration Skills Charge(ISC) each time you assign a Certificate of Sponsorship (CoS) to a migrant worker. The amount depends on: • the size and type of your organisation on the date you assign the worker’s CoS (Certificate of Sponsorship) and • the length of employment stated on the CoS If you are a small or charitable organisation, you’ll need to pay £364 per year for the sponsored employee. A small organisation is defined as 1-50 staff, less than 10.2 million annual turnovers, and total assets worth £5.1 million or less. In all other cases, you must pay £1,000 per year to sponsor an employee.
Who should pay the Immigration Skills Charge?
The ISC fee must be paid by the employer, not the sponsored worker. If the Home Office finds out that you passed on the ISC fee to the worker, your sponsor licence might be revoked.
Why does the employer have to pay the Immigration Skills Charge?
Since Brexit, more and more businesses are recruiting skilled workers from overseas. Part of the reason the Home Office charges employers ISC is to act as a disincentive for employers to employ migrant workers. The ISC will be used in funding the Department of Education in the domestic skills and training, with the intention of filling gaps in the local labour market supply.
When to pay the Immigration Skills Charge?
Unless an exception applies, you must pay the ISC each time you assign a CoS to a migrant worker.
So, who is exempt from Immigration Skills Charge?
According to the updated document by the Home Office “Workers and Temporary Workers: guidance for sponsors part 2: sponsor a worker – general information” article S5.9, you do not have to pay the charge if you assign a CoS to any of the following:
a worker who is applying from outside the UK for a period of less than 6 months
a worker who is being sponsored to do any of the following occupations:
2111 (chemical scientists)
2112 (biological scientists and biochemists)
2113 (physical scientists)
2114 (social and humanities scientists)
2119 (natural and social science professionals not elsewhere classified)
2150 (research and development managers)
2311 (higher education teaching professionals)
2444 (clergy)
3441 (sports players)
3442 (sports coaches, instructors or officials)
a worker to whom you have previously assigned a CoS where you assign them a new CoS to work for you; and the new period of permission they are seeking will not exceed their current period of permission
a worker who is switching from a student visa to a Skilled Worker or Senior or Specialist Worker route
Finally, there is one more point to be added: if you’re a Scale-up sponsor, you are exempt from ISC. More information about the Scale-up sponsor licence can be found here.
How to calculate the ISC?
Example 1:
A small restaurant wants to sponsor a chief for 5 years under a skilled worker visa. The ISC fee the restaurant owner need to pay is —- £1,820 (£364*5 years).
Example 2:
A big banking organisation wants to sponsor an IT developer for 5 years under a skilled worker visa. The ISC fee the tech company needs to pay is —- £5,000 (£1,000*5 years)
Example 3:
A big research company wants to sponsor a chemical scientist for 3 years under a skilled worker visa. The ISC fee the company needs to pay is —- £0 (ISC exempt because the occupation chemical scientist falls under the exception list)
Example 4:
A care home wants to sponsor a care worker for 5 years, the prospective care worker is currently holding a valid student visa and wants to switch to a Health & Care worker visa. The ISC fee the care home needs to pay is —- £0 (ISC exempt because the candidate is switching from a student visa)
Example 5:
A Scale up company wants to sponsor an engineer for 2 years. The ISC fee the Scale-up company needs to pay is —- £0 (Scale-up company are ISC exempt)
How can Europermitprohelp?
If you’re not sure how much you need to pay for the ISC, contact Europermitpro. We are regulated by the Office of the Immigration Services Commissioner (OISC) and we stay on top of immigration news. Our professional immigration advisers can assist you throughout your journey in sponsoring a skilled worker. Contact us via email on: sales@Europermitpro.com