Planning A Charity Event? Make Sure Your Foreign Staff Are Sponsored
*Collaborative post
According to regulations, any UK company wishing to hire EU or non-EU workers must hold a valid Sponsor Licence. Employers who are currently not approved sponsors are encouraged to apply for permits now if they think they want to sponsor qualified immigrants. As employers, a key issue for many companies will be the costs involved like sponsor licence fees in becoming an approved sponsor.
When do I need a licence to sponsor someone?
You’ll need a sponsor licence when you want to employ someone from outside the UK. Unpaid work is included in this definition, like managing a charity.
There are exclusions where you will not need a licence to sponsor, for example:
- Irish citizens
- those with settled or pre-settled status under the EU Settlement Scheme
- those with indefinite leave to remain in the UK
How much does it cost to apply for a sponsor licence?
Companies applying for a sponsor licence must pay a fee when applying online. This fee is used by the Home Office to consider the application and will not be refunded if the application is rejected, or the applicant withdraws after the consideration has started.
The amount paid depends on the size of the organization requesting the application. Smaller companies and organizations with charitable status can enjoy reduced fees. If the organization has an annual turnover of 10.2 million pounds or less and employs 50 people or less, the organization is usually classified as a small business.
When applying, you must choose the correct size or type for your organization, because this determines not only the application fee you must pay but also other fees during the validity period of your licence.
What other costs are involved?
In addition to paying the initial application fee for the sponsor’s licence, the company will also be charged for the following circumstances:
- Application to renew an existing sponsor’s licence-the renewal fee is the same as the initial application fee.
- Request to extend the scope of existing sponsor licences: Medium or large sponsors with existing level 5 licences can request to add level 2 to their existing licences.
- Assignment of each certificate of sponsorship.
Sponsors may also have to pay immigration skills fees for each foreign worker they hire. Also, the amount charged will depend on the size of the organization.
Employers should also consider other costs associated with sponsoring overseas workers holding level 2 skilled work visas, such as visa application fees and immigration health surcharges for applicants and their families. These costs are usually borne by the workers, but some employers choose to pay these costs on behalf of their employees.
However, it should be noted that employers cannot legally transfer sponsorship licence fees such as immigration skills fees to immigrant workers. Any sponsor who does so can lose their licence.
It is important to remember that there will be a fee for each application for a Sponsor licence, and if the Home Office rejects your application, this fee will not be refunded. For this reason, getting your application right the first time is the key to reducing business costs.
