If your organisation sponsors overseas workers, the Immigration Skills Charge (ISC) is one of the highest “upfront” costs you’ll face when assigning a Certificate of Sponsorship (CoS). From 16 December 2025, the cost rises sharply for most sponsors, and the key compliance point is this: the amount you pay is fixed by the date you assignthe CoS, not the date the worker submits their visa application.

Here we will explain the new rates, when they apply, commonpitfalls we see in practice, and practical examples to help you budget withconfidence.

What is the Immigration Skills Charge?

The ISC is a mandatory fee paid by most UK employers when sponsoring a worker on the Skilled Worker route orthe Global Business Mobility (Senior or Specialist Worker) route. It is paid when you assign the CoS through the Sponsorship Management System and must be paidby the sponsor (it must not be passed on to the worker).

The new ISC rates from 16 December 2025

From 16 December 2025, the ISC increases to:

For medium/large sponsors: £1,320 for the first 12 months, plus £660 for each additional 6-month period.

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For small/charitable sponsors: £480 for the first 12 months, plus £240 for each additional 6-month period.

The change is delivered through the Immigration Skills Charge (Amendment) Regulations 2025, which come into force on 16 December 2025.

When do the new rates apply?

This is the detail that often catches employers out: ISC liability is determined by the date the CoS is assigned. If the CoS is assigned before 16 December 2025, the lower rate applies. If the CoS is assigned on or after 16 December 2025, the higher rate applies, even if the visa application is submitted later.

The Home Office also makes clear that the amount depends on (1) the sponsor’s size/type on the date of assignment and (2) the length of employment stated on the CoS.

Examples to make the costs real

Example 1: Medium/Large sponsor, 3-year Skilled Worker hire

A 3-year CoS equals the first 12 months plus four additional 6-month blocks (24 months). Under the new rates,the ISC would be £1,320 + (4 × £660) = £3,960.

Under the old rates, it would have been £1,000 + (4 × £500) = £3,000. That’s an extra £960 for one hire.

Example 2: Medium/Large sponsor, 5-year sponsorship

The Home Office example of the maximum payable amount makes the budgeting point very clear: the maximum ISC for a five-year sponsorship becomes £6,600 for medium/large sponsors (and £2,400 for small/charitable).

Example 3: Assigning a CoS before vs after 16 December2025

Let’s say you plan to sponsor a Senior or Specialist Worker, and the role is ready. If you can lawfully assignthe CoS before 16 December 2025, you pay the lower ISC. If you assign it on/after 16 December 2025, you pay the increased ISC. The visa application date doesn’t change that outcome; it’s the assignment date that matters.

ISC exemptions sponsors should check before paying

Some sponsors pay the ISC when they don’t need to. Before you assign the CoS, it’s worth checking whether an exemption applies.

The Home Office confirms you do not need to pay the ISC where sponsorship is for certain SOC occupation codes (including several science/research and higher education roles), and it also confirms exemptions relating to certain workers switching from a visa that allows study, as well asa specific GBM Senior/Specialist Worker exemption for certain EU-linked transfers.

The Regulations also update the exemptions list by reference to SOC 2020 codes and come into force on 16 December 2025.

(Exemptions can be technical; if you’re unsure, take advice before assigning the CoS, because getting it wrong can mean paying more than necessary or creating compliance issues.)

Practical risks we see in sponsor compliance

Sponsors rarely fall into difficulty because they “don’t care”; it’s usually process gaps. The most common risk areas include assigning the CoS on the wrong date because recruitment is rushed, failing to align the CoS work dates with the genuine business need (which also affects fees), and internal teams misunderstanding whether the organisation should be treated as “small” or “medium/large” for ISC purposes. The Home Office guidance is explicit that the sponsor’s size/type on the date of CoS assignment is what determines the charge.

What employers should do now?

If you have planned sponsorships in your pipeline, this is the moment to review them. For some employers, it maybe appropriate to assign CoS earlier (where the role is ready, the individualis eligible, and all sponsor duties are met) so the lower ISC applies. For others, the priority will be budgeting correctly for 2026 hires and updating internal approval processes so hiring managers understand the cost uplift before offers are finalised.

How GigaLegal Solicitors can help

At GigaLegal Solicitors, we support sponsors with practical, business-first advice, from pipeline planning and cost forecasting, to compliance checks before CoS assignment, to end-to-end Skilled Worker and GBM sponsorship support.

If you want us to review your upcoming CoS assignments and confirm the correct ISC position (including any exemptions), contact GigaLegal Solicitors to book a consultation. We’ll help you reduce risk, avoid unnecessary costs, and keep your sponsorship process clean and audit-ready.