The White Paper and Immigration Reforms

On 12 May 2025, the UK government released a White Paper titled ‘Restoring control over the immigration system’ outlining significant proposals to reform the current immigration system. The document sets out a wide range of changes to key visa routes and general immigration requirements. Below is a summary of the most important proposed reforms:

Skilled Worker visa updates

The proposed changes to the Skilled Worker route focus on raising thresholds and tightening eligibility criteria.

• Increase in the Immigration Skills Charge (ISC):
  The government proposes a 32% increase in the ISC, raising it from £1,000 to approximately £1,320 per year of sponsorship. Introduced in 2017, the ISC is a mandatory fee paid by UK employers when sponsoring skilled migrant workers. The funds are allocated to the Department for Education to support local workforce training, further education, and apprenticeships. In 2022/23, ISC revenue reached £553 million according to the Migration Advisory Committee Annual Report 2024.
• Raising the Skills Threshold:
  The proposed shift to allow sponsorship of roles at RQF Level 6 (degree-level roles only) would make a significant number of jobs, estimated at over 170 occupations, ineligible for sponsorship. These roles could in theory be added to a new Temporary Shortage Occupation List, with the existing Immigration Salary List abolished, but the government claims the new list will be under constant review.
• Increase in Salary Thresholds:
  Although not confirmed, there is speculation that the base salary requirement could rise to approximately £50,000, following the exclusion of lower-skilled jobs form sponsorship.
• Closure of visa sponsorship for care workers:
  This route will close to new overseas senior care workers, though in-country extensions will be allowed until 2028. The change shifts pressure onto adult social care providers to rely on the domestic workforce, amid already stretched local authority budgets.

Extended settlement (Indefinite Leave to Remain)
The UKVI proposes an extension of the qualifying period for settlement from 5 to 10 years for all work visa routes. A move has raised alarm among migrants already on the pathway to ILR, because the UKVI has not confirmed that it will not include existing visa holders. At the same time, the government indicated that faster settlement routes may be available for individuals who make significant economic or societal contributions. There will be consultations over this proposal during 2025, so we expect the new legislation to be in place by spring 2026.

Graduate visa update
The Graduate Visa duration is planned to be reduced from 24 months to 18 months. The government argues that graduates should transition more quickly into higher-skilled roles, because in practice many currently take up lower-skilled jobs.

Student Visa compliance for sponsors
Proposed changes include:

• Introduction of a levy on higher education provider income from international students, to be reinvested into the UK’s higher education sector.
• Stricter compliance requirements for universities, including enhanced monitoring of student attendance and course completion rates.

Other economic routes
To support innovation and economic growth, the White Paper proposes enhancements to various business immigration routes:

• Expansion of research internship schemes, particularly in Artificial Intelligence (AI).
• Extension of the Global Talent Visa to include more scientific and design professionals.
• Extend Innovator Founder visa options to support university-based entrepreneurs.
• Doubling of the Expansion Worker licence sponsorship quota for companies establishing a UK presence.
• Broadening eligibility for the High Potential Individual (HPI) route to include graduates from more global institutions.

General Immigration Requirements
Several overarching changes are also proposed:

• Higher English language requirements:
  • Main applicants for certain work visas may need to meet a B2 CEFR level of English, which is currently set at B1.
  • New English language requirement to be introduced for dependents starting at A1 CEFR level.
• Stricter compliance rules for employers and educational sponsors, who should expect to face tighter scrutiny and enforcement.
• Digital transformation of border control. The UK will continue implementing its Digital Border initiative, including the rollout of contactless eGates, ending issuing vignettes and passport collection at Visa Application Centres (VACs) for key visa routes. Indeed, UKVI latest eVisa guidance update on 9 June 2025 confirmed that UK visa vignettes will no longer be issued by UKVI (UK Visas and Immigration) after June 11, 2025. Instead, UKVI will require a UKVI account and digital immigration status (eVisas) for travel to the UK. This change applies to all visa categories, including student, work, and other visas.

These proposals signal a decisive shift in UK immigration policy toward higher-skilled migration and stricter controls, while also aiming to invest more in domestic talent development. The government is expected to open a consultation period before finalising any legislative changes later in 2025.

Tech Nation to remain the Endorsing Body for Global Talent visa in technology

Following over 2 years of uncertainty, Tech Nation confirmed they are to remain the Government approved authority for Digital Technology endorsements for Global Talent visa applicants for further 3 years. They are expected to continue endorsing Global Talent applicants in the digital technology sector, and it remains to be seen whether the process will change as a result of new contract with the UKVI.

Youth Mobility Scheme can include EU nationals

The UK Government is exploring possibility of expanding Youth Mobility Scheme to EU countries as part of the recent EU-UK trade deal.
The scheme allows young people to spend up to 2 (or 3) years in countries participating in the program. The UK has currently reciprocal Youth Mobility agreements with Australia, New Zealand, Canada, South Korea, Andorra, Iceland, Japan, Monaco, San Marino and Urugay. A similar scheme is in place with India that is limited by ballot and higher healthcare charge.
The European Union and the UK has agreed in principle to further co-operate on the Scheme which would allow young British and EU citizens to freely travel and work in the respective countries for a time-limited period.

Biometric UK visa appointments in Russia

Visa applicants applying from Russia keep experiencing a shortage of biometric appointment slots. Applicants are unable to secure appointments in any VFS locations in Russia which significantly delays visa processing times. Those applying from Russia can expect a long wait to secure the appointment and where possible, consider applying from another location.

BRP and eVisa deadline on 1 June 2025

The grace period for using BRP card for travelling overseas ends on 1 June 2025. From this date, individuals traveling to the UK can no longer rely on expired BRP cards for international travel and must produce an eVisa to prove their right to enter the UK. The UKVI still advises to keep your expired BRP card as it may help with future applications to stay in the UK, and it can also still be used for generating share codes within the UK as a proof of rent or right to work.

As of April 2025 data, over 4 million people had successfully created a UKVI account to access their eVisa. This still leaves an estimated 550,000 immigration status holders who need to create a UKVI account. We therefore advise all those who have a UK visa to register for eVisa account with their passport as soon as possible.

Ecctis & overseas qualifications assessment

The UKVI has announced new updated services provided by Ecctis Ltd under a new contract effective from 1 May 2025. Eccits is a UKVI appointed body to conduct assessments of overseas qualifications for visa and nationality applications. The process now includes identity check for applicants and direct contact with educational institutions.

The assessment time has increased to 20 working days and expedited priority services are no longer available. The enhanced services include closer examination of overseas qualifications with as direct qualification verification. There will also be an automatic closure of application if awarding institution does not respond to Ecctis. Applicants are strongly advised to contact their awarding institution before applying. If the institution fails to verify an applicant’s qualification to Ecctis within 20 working days, the application will be closed automatically.

Applicants looking to file a visa application with a language or qualification requirement must allow sufficient time for assessment or seek alternative ways to meet the criteria, such as passing an English test instead of relying on the degree.

UK immigration department at Sherrards supports and educates their clients on the UK right to work and other UK immigration compliance regulations. If you have questions about your UK immigration compliance, please reach out to your usual Sherrards contact, or reach out to Nelli Shevchenko directly.

At the forefront of Sherrards’ Immigration and Global Mobility practice is Nelli Shevchenko, a Senior Associate based in the London office, whose strategic advice is helping businesses worldwide navigate the complex world of international mobility with clarity, confidence, and compliance.

A Decade of Specialist Expertise

With over ten years of experience in UK immigration law, Nelli has advised a diverse range of clients – from large multinational corporations and US law firms to individual entrepreneurs and creative professionals. Before joining Sherrards, she headed the UK corporate immigration department of a US law firm, bringing a sharp transatlantic perspective to her practice.

At Sherrards, Nelli plays a pivotal role in the Employment and Immigration team, offering businesses, family offices and individuals immigration advice. She provides hands-on support for Skilled Worker visas, Global Business Mobility visas, sponsor licence applications, and UK right-to-work compliance. Following Brexit, Nelli has also been supporting businesses on their EU–UK operations, advising on the movement of personnel across borders and helping companies adapt to the new regulatory landscape. Her private practice areas include complex family or British nationality matters. She is also renowned for her work on Global Talent visa applications for leaders in digital technology, and the arts and sciences. 

When to Contact Sherrards’ Immigration Practice

The Sherrards Immigration team provides comprehensive UK immigration advice tailored to both businesses and individuals. Clients typically reach out to the team in the following scenarios:

• Hiring foreign nationals or relocating existing employees
• Senior executive or leadership assignments
• Relocating to the UK for family or personal reasons
• Starting or expanding a business presence in the UK
• Investing in UK businesses or entrepreneurship pathways
• Sending children to the UK for education, from school through to university
• Navigating complex right to stay, settlement or British nationality applications, including discretionary and historic entitlement claims

No matter the size or scope of the requirement, Sherrards offers proactive, strategic advice and practical solutions that allow clients to focus on their goals while remaining compliant with ever-changing immigration rules.

Leading Sherrards’ Global Mobility vision – Meet the Team

As the lead of Sherrards’ Global Mobility practice, Nelli has built strong relationships with immigration professionals across 87 countries. Her work focuses not only on supporting UK-bound talent but also on enabling businesses to expand and operate seamlessly across jurisdictions. From securing work permits to advising on business visitor visas and facilitating cross-border moves, Nelli and her team offer tailor, end-to-end immigration support.

Sherrards’ growing global network is especially active in the US and China, where firms’ international reach continues to expand. Through a dedicated China Desk, the firm supports businesses engaged with the Chinese market, providing region-specific immigration insight and compliance strategies that align with business goals and local regulations. Christine Wang is working alongside Nelli and provides dedicated support to Chinese clients.

Sherrards’ immigration practice is underpinned by a collaborative, client-focused team. Alongside Nelli, the team includes:

• Christine Wang, Solicitor, brings cross-cultural expertise and deep knowledge of UK immigration processes with a focus on Chinese speaking clients.
• Anna Gorna, Legal Executive, provides detailed legal support and operational insight.

From startups to multinational enterprises, Sherrards’ tailored service model ensures that clients remain agile, compliant, and future-ready.

Meet Nelli at the AILA Global Migration Forum

In June 2025, Nelli will be attending the American Immigration Lawyers Association (AILA) Global Migration Section (GMS) Annual Global Immigration Forum in Denver, Colorado. The event – hosted in the majestic setting of the Rocky Mountains – promises to be a key gathering of global immigration leaders exploring pressing issues in the world of international mobility.

If you’re attending the AILA GMS Forum or are in Denver, CA from 21–23 June 2025, reach out to Nelli to connect and share insights on the latest developments in global immigration. Whether you’re navigating new compliance rules, seeking to expand overseas, or simply want to exchange ideas with fellow practitioners, Nelli would be delighted to meet you.

📧 Email: ns@sherrards.com

🔗 LinkedIn: https://www.linkedin.com/in/nelli-shevchenko/

Immigration fees rise – What you need to know

The UK Home Office announced that most UK visa, sponsorship, and nationality fees will increase on April 9, 2025, impacting various categories, including work, visit, and settlement visas, as well as sponsorship and electronic travel authorization (ETA) fees.

Summary of main changes are below:

UK Visitor visa fee:

• Up to 6 months entry – from £115 to £125
• Up to 2 year entry – from £432 to £475
• Up to 5 year entry – from £771to 848
• Up to 10 year entry – from 963 to £1,059
• ETA – from £10 to £16

Skilled Worker & Global Business Mobility visa fee:
Applying outside the UK:

• Up to 3 years – from £719 to £769
• Up to 5 years – from £1,420 to £1,519

Applying inside the UK:

• Up to 3 years – from £827 to £885
• Up to 5 years – from £1,636 to £1,751

Sponsor licence application fee:

• Small company – from £536 to £574
• Medium or large company – from £1,476 to £1,579

Notably, a definition of ‘small’ company has changed on 6 April 2025 and the thresholds on turnover was increased from £10.0 million to £15 million or less, and balance sheet is increased from 5.1 million to 7.5 million or less. This means that more companies can now fall under the lower fee.

Certificate of sponsorship (CoS) fee:

• Change from £239 to £525

Settlement & Naturalisation fee:

• Indefinite Leave to Remain – from £2,885 to £3,029
• Naturalisation as adult British citizen – from £1,500 to £1,605

Global Talent application fee:

• Stage 1 – from £524 to £561
• Stage 2 – from £192 to £205

Spouse & Family visa fee:

• Fee change from £1,846 to £1,938

The full list of the latest UKVI fees can be found on the Government website here.

Sponsored workers salary deductions and new entrant

Significant updates to the Immigration Rules took effect from 9 April 2025, impacting how salary thresholds for Skilled Worker visas are assessed. Under the new rules, certain payments made by the applicant to their employer (or a related entity) will be deducted from the applicant’s salary when determining whether the minimum salary requirement has been met. Specifically, the following types of payments must now be subtracted from the gross salary:

• Deductions from salary (e.g. regular payroll deductions for immigration-related expenses)
• Repayments of loans provided by the sponsor or a related party (e.g. repayment of loans given to cover visa fees or the Immigration Health Surcharge (IHS))
• Investments made by the applicant into the sponsor’s business (e.g. contributing capital in return for a higher declared salary)

These deductions will be averaged over the entire period of sponsorship. Importantly, even if these payments are made voluntarily or via informal agreements between the employer and employee, they will still reduce the salary figure used for compliance. Only payments that are genuinely optional benefits, such as salary sacrifice schemes (e.g. cycle-to-work or pension contributions), which the applicant is not compelled to take, will be exempt from deduction—provided they are not connected to immigration or business costs.

This clarification is part of the government’s broader effort to strengthen the sponsorship system and prevent the exploitation of sponsored workers through inflated or misleading salary declarations. Employers should take immediate steps to audit current practices, including any standard deductions for immigration costs, and adjust HR and recruitment processes accordingly.
Additionally, the new rules confirm that “new entrant” salary discounts based on training must now relate to a UK-recognised professional qualification only.

With a White Paper on immigration policy expected in May 2025 and the Migration Advisory Committee’s review of the IT and engineering sectors pending, further changes may be on the horizon. Sponsors must ensure continued vigilance to avoid non-compliance as enforcement action by UKVI continues to rise.

Electronic Travel Authorisation (ETA) is mandatory for all visitors

From 2 April 2025, all foreign nationals require an Electronic Travel Authorisation (ETA) prior to arriving to the UK as visitors for up to 6 months. Previously, non-visa nationals did not require a pre-arrival authorisation to come to the UK and were able to seek entry upon arrival. Since 2024, the UK government has started implementing in stages a requirement for ETA for visitors. ETA applies to all foreign non-visa nationals, unless they are British or Irish, or already have a UK immigration status (visitor visa, eVisa, or settlement).

The ETA is valid for 2 years or for the validity of the passport, whichever expires first. This is a multiple entry authorisation record and is only applicable to one passport. It currently costs £10 going up to £16 from 9 April 2025.

Current processing time is stated as 3 days but can take longer in certain complex circumstances. According to the UKVI statistics, 98% of all current applications is decided within 24 hours but they see an increased demand in ETA that can affect the processing times.

The UKVI is also going to enforce the requirement for visitors to have an ETA before they board the plane, train or ferry to the UK, making all carriers responsible for checking all passengers’ UK immigration documents. You can be refused boarding if you come to the UK without a necessary documentation.

If you are refused an ETA, you are required to apply for UK Visitor visa in advance of your trip and it can take up to a month to get a UK visa.

Therefore, it is important to apply for ETA in advance of your UK trip to avoid disappointment. Global mobility and HR teams should ensure that all business travellers have a valid ETA or visa before they travel to the UK.

Legal obligations for the UKVI eVisa account holders

Th UK visa system is being digitalised with introduction of eVisas and UKVI accounts for all UK immigration status holders linked directly to the identity documents. The UKVI account allows the visa holder to view and prove their immigration status electronically to employers, landlords, banks, airlines and other agencies. Everybody who has a UK immigration status, such as visa or settled status, must have a UKVI eVisa account. If you do not have an eVisa account already, you should register as soon as possible here.

UKVI eVisa account replaces previous physical documents, such as Biometric Residence Permits (BRPs) and Biometric Residence Cards (BRCs). Although the BRPs have expired on 31 December 2024, they continue to be accepted until 1 June 2025. The transitional period was extended twice already, so it is possible that it will be extended again.

On 27 March 2025, the Government introduced formal maintenance obligations for UKVI account holders. In an event of non-compliance, the UKVI can impose sanctions and penalties on the UKVI account holders. The sanctions include refusal of a visa application, suspension of ability to create a share code to prove immigration status, visa cancellation and in severe cases, and even civil penalties up to £1,000.

It is a legal requirement that a person with a UK immigration status must register and maintain a UKVI account with access to the eVisa. The account holder is under obligation to keep their personal information in the account accurate and up to date with details such as:

1. passport or identity document;
2. biographical details;
3. residential address;
4. contact details; and
5. facial image of their face.

If any of these details change, the account holder must report the changes to UKVI.

Right to work checks extending to ‘gig’ economy and contactor workers

On 30 March 2025, the UK Home Secretary Yvette Cooper announced that businesses operating in the ‘gig’ economy and those offering zero-hours contracts will be required to carry out the right to work checks on people working for them on a flexible basis. The checks are required to avoid civil penalties of up to £60,000 per worker found to be working illegally.

Currently, companies are required to carry out right to work checks on all employees where formal employment relationship existed. Contractors and informal workers are excluded from the illegal working penalties and the employers are normally only encouraged to ensure all workers have a right to work in the UK before engaging them.

The provisions to expand the existing right to work checks obligations is an amendment to the Employment Rights Bill which is currently in the House of Lords. If adopted, it is expected to become law in spring 2025. If passed, the requirement to complete a right to work check and enforcement provisions will apply to all, including those on-demand workers, particularly operating in construction, food delivery, beauty salons, courier services.

The change follows a recently published study, carried out by Verian on behalf of the Home Office on the overall employers awareness and compliance of the Right to work checks. It shows that whilst 89% employers have an understanding of basic right to work requirements, many are not familiar with detailed compliance obligations. Small employers in specific sectors are particularly at risk of non-compliance. Various transitional arrangements such as cessation of Biometric Residence Permits and switching to eVisas creates further challenges.

In summary, the research has shown that:

• Smaller employers, hiring agencies, zero-hours workers, and those in the construction industry are at a higher risk of failing right to work compliance.
• Most employers (80%) answered at least one compliance question incorrectly, meaning they were at risk of potentially non-compliant behaviour.
• Employers varied their use of key Right to Work mechanisms depending on their business size, sector and use of agency/zero-hours workers.
• Employers need further education on illegal working or right to work check enforcement, such civil penalties.

Right to work checks should not be complicated and once the process is established, the businesses would be protected against potential penalties. In addition, a compliant business protects itself from enforcement actions that can also bring reputation and operation damage.

UK immigration department at Sherrards supports and educates their clients on the UK right to work and other UK immigration compliance regulations. If you have questions about your UK immigration compliance, please reach out to your usual Sherrards contact, or reach out to Nelli Shevchenko directly.

the need for properly carrying out right to work checks. Indeed, the latest data for 2025 show that enforcement this January was up by 73% compared with January 2024.

For a first offence, employers can face penalties of £45,000 per illegal worker. This amount can reach £60,000 per illegal worker for subsequent offences. Relevant individuals and company directors can also face criminal sanctions of up to five years imprisonment and/or an unlimited fine. And, beyond penalties, failing compliance can harm your company’s reputation and disrupt your operations.

The high level of fines can bankrupt smaller to mid-size businesses, so HR compliance becomes even more crucial.

In the second of our two-part series on UK immigration and employment compliance, we focus on getting right to work compliance right – and avoiding costly penalties and reputational damage

Who needs to do the right to work checks?

A common misunderstanding is that right to work checks only apply to employers hiring foreign nationals. This is incorrect. UK law requires all employers to conduct these checks for every employee, regardless of nationality, to prevent illegal employment.

Notably, since September 2024, the UKVI has been encouraging businesses to carry out right to work checks beyond directly employed staff and extending it to self-employed contractors (and any substitute workers) and agency workers. One of the strongest reasons to do this is to avoid reputational damage.

Businesses with a UKVI Sponsor Licence face more rigorous requirements and greater scrutiny from immigration authorities. If your business has such a licence, you must demonstrate meticulous compliance procedures and maintain detailed, accurate records to pass regular audits. Otherwise, you can lose your licence and put your sponsored population at risk.

Conducting the checks

You must complete right to work checks before an employee starts work.

These checks cannot be delayed until after an employee has started their first working day. If someone cannot immediately show proof of their UK right to work, they must not be allowed to begin work until they can produce the correct documentation.

Employers must follow simple three steps:

1. request original documents from the UKVI’s approved list in appropriate format
2. inspect these documents carefully, verify their authenticity, and ensure they match the individual’s identity
3. clearly record the date of the check and keep secure copies of these documents throughout employment and for two years after employment ends.

If a document or online verification shows the right to work is temporary, you must set reminders to perform follow-up checks before that expiry date. This helps maintain compliance and avoids penalties.

If your right to work check complies fully with current guidance and legislation, your business has a “statutory excuse”. This provides protection against penalties if an employee is later found to be working illegally, provided you’ve conducted proper follow-up checks as required.

Accurate and accessible record-keeping is vital. Your records should include copies of all relevant documentation, digital verification results, and clear notes on who carried out each check and when. Having a record of a right to work check can be decisive in an event of illegal working instance and help the business avoid penalties.

Identifying potential problems

If your company is involved in a transfer of staff under TUPE regulations, additional right to work checks might be necessary for the new employees.

If the company uses an Identity Service Provider (IDSP) for their checks, they must remember that this does not discharge their duties from record keeping and identity check. Moreover, an IDSP can be expressly used for right to work checks of British or Irish citizens with a valid passport only. It is not possible to establish a statutory excuse against liability for a civil penalty if the check via manual document-based check or online service was done by an IDSP. The company must ensure they are doing those checks and also checking the IDPS results, or they can be liable for a penalty.

If you discover an employee no longer holds the right to work in the UK, you are usually required by law to stop employing them immediately. Although this protects you from unfair dismissal claims, such dismissals must be carefully managed according to employment law. You should seek professional advice to avoid discrimination claims and ensure legal compliance.

In case of any doubt regarding an individual’s documentation, do not allow them to start work until you are certain of their legal status. The UKVI Employer Checking Service can provide assistance if required. If unsure, immediately seek advice from your immigration advisor.

In an event of an audit from the UKVI enforcement team, employers can potentially reduce penalties if they clearly demonstrate:

• consistent and robust right to work checking procedures
• regular documented training for staff performing checks
• prompt corrective actions in response to any identified issues

Additionally, cooperation during audits and proactively addressing compliance issues may help mitigate penalties.

Conclusion

Effective UK right to work checks, accurate record-keeping, and vigilant monitoring are critical to avoiding significant fines, legal issues, and reputational damage. Businesses, especially those with a UK Sponsor Licence, must maintain high compliance standards to ensure smooth and successful operations in the current regulatory environment.

To find out more contact our Employment & Immigration team here. 

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According to the Entrepreneurs Network report from 2023, 39% of the UK’s fastest-growing startups have at least one immigrant co-founder. Within this segment, 14% were founded entirely by foreign-born individuals, while 25% were joint ventures between British-born and foreign-born co-founders. Consequently, investors in the UK’s tech sector must consider immigration when conducting due diligence, as hiring and retaining international talent is integral to business growth. 

Immigration Considerations in Due Diligence 

1. Founder’s Immigration Status 

Investors should assess the immigration status of all company founders. Certain visa types, such as student or visitor visas, impose work restrictions. Ensuring a founder’s presence in the UK is often critical for business success, so any immigration issues should be resolved before completing a deal. Evaluations must be standardised and non-discriminatory across all portfolio companies. 

2. Key Team Members and Employees 

Beyond the founders, employees are the backbone of the company and contribute to its growth. Investors should verify that all employees have the appropriate permissions to work in the UK. If employees require visa, consulting an immigration professional may be necessary. 

3. Immigration policy and strategy for growth 

As the company scales post-investment, establishing an immigration policy can be a strategic advantage in hiring and retaining top talent. Obtaining a sponsor licence allows businesses to attract skilled global talent and remain competitive in hiring. Although obtaining such a licence involves administrative costs, it can be a valuable long-term investment. 

4. Ongoing Immigration Licence Compliance  

If the company holds a UK sponsor licence, any corporate changes — such as mergers, acquisitions, or restructuring — require action from the company. Failure to comply can lead to licence revocation and the loss of UK visas for key personnel. In the event of regular updates to the shareholding, it is worth reviewing corporate structure to minimise relevant sponsor licence action. Regularly reviewing the corporate structure and obtaining legal advice ensures compliance and minimises disruptions. 

Key Immigration Questions in Due Diligence 

Investors should ask the following immigration-related questions during due diligence: 

• Who are the founders, and what is their nationality, place of residence and UK immigration status? 

• Is a UK presence essential for their role? 

• If permission is needed, what type of visa are they on? Does it allow them to work in the UK? 

• Does the company have a UK legal entity already? 

• Are employees legally employed by the UK company? 

• Does the company already have a sponsor licence? Which entity holds the licence and do any of the corporate transactions affect that entity?  

• If not, does the company plan to have a sponsor licence? 

Practical and Financial Implications 

Non-compliance with UK immigration laws can lead to severe penalties, including legal costs, civil penalty fines of up to £60,000, and even criminal liability. A breach can be cumbersome, time-consuming, and damaging to the company, its directors, and investors. 

While most founders do not need to consider immigration, those requiring visas have various options depending on their circumstances, but those details need to be resolved early. If a skilled employee or founder requires a visa, it is often worth the investment. 

As such, startups and investors in the UK market must take immigration matters seriously and integrate them into the due diligence process from the outset.

In the current competitive talent market, UK businesses strive to attract best and brightest to join their ranks. It often means sourcing suitable candidates from overseas and undergoing a sponsorship process. Before an offer is made, the business must consider various aspects of the hiring process and the associated cost.

One of the fundamental questions in decision for sponsoring is how much it will cost and what if things go wrong?

Indeed, the cost of sponsorship can run into thousands of pounds with fees to be paid upfront before the candidate even starts work. Businesses need to understand what happens if the employee decides not to join before their start date with the business or leaves within a short period of time. With over 100,000 UK business holding a sponsor licence, employers often ask how to make sponsorship process cost-effective and how to protect themselves from losing not only the candidate, but the money paid to get the UK visa.

How much does it cost to sponsor a worker?

1. Sponsor licence application fee

Firstly, to employ an overseas worker, the business must have a licence in place. The licence is granted by the Home Office, and it is a one-off cost to the business with automatic extensions. Where the company already has a licence, the fee is not required.

A small company pays £536, and a medium or large business pays £1,476 to apply for a sponsor licence. The size of the business is regulated by the Companies Act, and depends on annual turnover, assets and number of employees (50+). Small company fees also apply to charities and schools etc. A decision usually comes within 8 weeks or, within 10 working days for an additional £500.

For a full breakdown of costs, visit the UK Home Office Website.

2. Certificate of Sponsorship fee

The Certificate of Sponsorship (Certificate) is issued to each individual candidate or employee with their job details confirming the company’s sponsorship. The cost of the Certificate, payable by the business, is currently £239.

In January 2025, Parliament proposed to increase the Certificate fee to £525. We are yet to learn if the increase will happen and if so, when, but our experience is that this will happen very quickly, so may affect up-coming recruitment.

3. Immigration Skills Charge

On top of the Certificate, the business pays the Immigration Skills Charge (ISC). This is set at £364 per year of sponsorship for small businesses, and £1,000 per year of sponsorship for large businesses.

The ISC was introduced in 2017 as a way of generating extra funds to the Department of Education to invest in skills development and training of local workers. The charge raised £586 million in 2022/23 alone, though some argue a lack of transparency in relation to how the funds are being utilised.  

4. UK visa application fee

A UK visa application fee needs to be paid by the individual to submit a UK visa. form.

Those hired from outside the UK currently pay £719 (3-year visa) or £1,420 (5-year visa).

Candidates based within the UK currently pay £827 (3-year visa) or £1,636 (5-year visa).

These fees do not include any family dependants.

5. Immigration Health Surcharge

The Immigration Health Surcharge, set by the Government but paid by the visa applicant is currently £1,035 per year per adult and £776 per year per child and is payable for each year of the visa (in advance with the UK visa application fee).

The fee was dramatically increased in February 2024 rising by some 66% in part, to reflect the increased pressure and the upward costs of healthcare due to the growing migrant population (as stated in the Government’s Explanatory Memo).

6. Is there anything else to pay during the sponsor license application?

There are various additional, often optional, fees to cover. Depending on the candidate’s location and nationality, the visa application centre fee can be applicable in a range between £50-200. Some applicants may need biometrics and therefore will need to collect in person, attracting additional costs for appointments and courier services.

In addition: legal fees, expedited processing services, or dependants joining the new hire may all add to either the overall cost outlay or delay for the employer. By way of example, the total cost of sponsorship, for an employee with a 5-year visa in a medium-sized company with no additional services or cost will come to total of £11,834, based on the following calculations: £239 + £5,000 + £1,420 + 5,175 = £11,834.

This excludes any legal fees, expedited processing service or other additional charges.

 

Restrictions on UK immigration fee recovery

The cost of a UK work visa application is often a significant expense to the business. It is no surprise then, that some employers will therefore ask their sponsored employee to reimburse some fees associated with the sponsorship process, especially in case of their early departure.

However, companies and other entities must be careful which costs they wish to recover.

They cannot recover the cost associated with the sponsorship itself. This is a cost that must be paid by the businesses who rely on the overseas workers. The Home Office made it clear in the latest 31^st December 2024 sponsorship guidance update, that the business cannot ask its sponsored employees to cover or ask for reimbursement of the following fees:

• Sponsor licence application fee and any other fee associated with maintaining the sponsor licence, including its administration and legal fees related to the licence application – (1) above.
• Cost of Certificate of Sponsorship – (2) above.
• Cost of Immigration Skills Charge – (3) above.

A business found in breach of the above conditions, risks a compliance action from the Home Office which may lead to suspension or revocation of the licence. This in turn can have disastrous consequences for the business, whose sponsored workers may lose their right to work in the UK unless they find an alternative sponsor.

What does the Home Office say about refunds?

UK immigration related costs are payable in advance for the full length of requested visa. However, what happens if the employee leaves early? For example, after 2-years on 5-year visa. Can the extra cost be refunded? The answer is partially. The Home Office refunds some of the fees that were paid per year of visa length. Detailed guidelines are set out covering various scenarios where full or partial refunds can be made.

In short, the business may be able to reclaim some of the cost when the:

• worker decides not to work for the sponsor;
• application is withdrawn before the decision is made;
• UK visa is refused;
• worker leaves the job early; or
• worker changes their sponsoring employer.

Whether a refund of immigration fees paid out will be possible, will depend upon individual circumstances and specific costs paid as part of the application process.

How can employer manage the repayment?

During the hiring process, it will be useful for the business to be clear, internally and in conversation with its new hire about how the immigration and employment processes will ’dovetail’.

There are a number of points which immediately spring to mind here:

• Pre-hire deed

During a period of likely negotiation, prior to the employment contract being signed, there will need to be a balance of trust: the employer may be applying for the Sponsor licence and thereafter applying for the certificate and therefore there may be a period of ‘quiet’ whilst forms are filled in and applications are made. The individual needs to remain steadfast in their commitment to join the business in question and communication needs to continue with the new hire – there needs to be comfort on both sides, particularly as the employer will be incurring costs.

To this end, some employers may at this point decide to put a deed in place (a separate stand-alone contract) under which certain immigration and legal costs expended are repayable if the potential hire does not in fact join the business at all. Let’s not forget the time and extent of the recruitment and hiring process to find the ideal candidate. This may act as a deterrent and/or give ‘comfort’ during this time. The extent of enforceability will be determined by jurisdiction and the candidate’s likely ties in future to the UK. It may become commercially unviable to pursue legal proceedings to enforce a deed outside the jurisdiction. Nevertheless, this can be a successful route, particularly if the individual has the mindset of moving to the UK or staying here.

• Drafting the employment contract:

 

The contract should ideally include the general principle that the employee agrees to repay some or all of the immigration fees (defined) to the employer if they either fail to commence employment or leave the employment within a particular period of time after commencement of employment. The sponsor licence application fee (and associated administrative and legal costs), Certificate fee and Immigration Skills Charge, as explained above, cannot included in this clause as these costs must not be passed on to the migrant.

 

• Sliding scale of repayments

Either within the contract of employment or sometimes as a separate policy (in a similar form to recoupment of training costs), this will usually set out the rate (often expressed as a percentage of the agreed sum) of the repayment on a sliding scale according to when the employee ceases their employment or if the individual fails to commence employment.

In this way, the longer the employee remains with the employer, the lower the percentage recoupment should be and the more benefit the business will receive from the expense of the immigration fees.

Remember also, that there needs to be power within the contract to allow the employer to make deductions from salary and this needs to be set out at the outset (and is usually a standard clause in the contract of employment).

• Is repayment required?

There may be times when repayment is not required, and this should also be included in the drafting. Likely to be redundancy or summary dismissal – gross misconduct. Setting out when payment is not required will ensure everyone understands what is expected and required.

That said, there is no contractual provision required to specify the amount that will be deducted but do ensure that contractual provisions authorising deductions are drafted as precisely as possible. This is because if there is any ambiguity, it is likely to be construed against the employer, and the employer will, in any case, need to show that the deduction has occurred. 

• Other employment law considerations

Employers should remember that the amount of the repayment and its corresponding timescale will be relevant to determining whether the clause is a penalty clause.

Another point to bear in mind is that employers need to ensure that the repayment period is not too long, as it may indirectly discriminate against employees on grounds of age, sex or disability: female, older or disabled workers are often less likely or less able than others to remain in continuous employment for longer periods of time and then a risk arises.

Summary

The business will have spent considerable time and effort during the recruitment process, incurring significant costs, including visa sponsorship fees and other expenses. Having identified the correct hire, it is important both parties move forward into the employment relationship knowing what is expected and required. By utilising sponsorship policies and repayment clauses referred to in this article, employers can safeguard their investment, ensure legal compliance with UK immigration law, and maintain a streamlined hiring process.  

If you would like to find out more please contact the Employment & Immigration team here, or via the details below.

In early January, Senior Associate Nelli Shevchenko became the newest member of our team, following Solicitor Christine Wang, who joined us in November 2024. These recent appointments strengthen Sherrards’ legal expertise and capabilities, ensuring our clients continue to receive the highest standard of service in the dynamic field of UK immigration law.

A Warm Welcome to Nelli Shevchenko

Bringing over 10 years of experience from London’s leading immigration law firms, Nelli’s extensive expertise spans both corporate and private UK immigration matters, advising a wide range of clients from large multinational corporations to small entrepreneurs. Coming from a US law firm, she has a deep knowledge of the US market, including managing UK immigration matters for US corporations undergoing restructuring. Nelli’s other specialist sectors include digital technology, arts, financial and consulting services, bio and life sciences, manufacturing etc.

Throughout her distinguished career, Nelli has supported high-profile clients with their  immigration needs applying compassion and sensitivity required for each case and has developed a deep understanding of UK immigration law’s complexities. Nelli’s arrival marks a significant enhancement of Sherrards’ ability to provide bespoke, innovative immigration solutions to meet diverse client needs.

Nelli commented “I’m excited to bring my experience to Sherrards, where our team will focus on developing clear practical and innovative solutions while maintaining the personal touch that complex UK immigration matters demand.”

Ongoing Growth Strategy

These appointments reflect Sherrards’ commitment to expanding its legal expertise and reinforcing its Employment & Immigration Practice as a core service area. By investing in top-tier talent, we aim to deliver unparalleled support to businesses, entrepreneurs, and individuals navigating the UK’s immigration landscape.

“I am delighted to welcome Nelli and Christine to Sherrards”, said Mark Fellows, Head of Employment and Immigration. “Their impressive track records and expertise aligns perfectly with our mission to support our clients in this vital area of law, and to provide commercial and strategic advice to help clients achieve their desired outcomes. The expansion of the Employment and Immigration practice reflects our ongoing commitment to growth, and I am thrilled that we have Nelli and Christine on board to help us deliver on that commitment.”

 

 

The last increase to the civil penalty was in 2014. From January 2024 , this will be raised up to £45,000 per illegal worker for a first breach (from £15,000), and up to £60,000 for repeat breaches (from £20,000).

We have assisted numerous employers in ensuring compliance. Whether this is in terms of advice on issues surrounding illegal working generally,  or more specific concerns. 

If you have any concerns about your processes, please do not delay.  An audit or health-check could be the key to avoiding non-compliance. 

Please contact Emma peacock on the below details for more information, if required.

Melissa has significant experience working with care home providers and has recently worked for a large care provider providing specialist care services for more than three decades. Recognised as a market leader in the provision of care, the care provider is committed to developing its staff and providing them with the right environment, motivation and training through which to excel. It needed to first apply for a sponsor license and then to apply for and assign the required sponsorship paperwork to prospective employees, followed by the visa applications themselves.

Care homes often need support when recruiting care workers and nurses from outside of the UK.  The freedom of movement of people between the UK and other European member states, let alone the rest of the world, has been hugely impacted by Brexit, and at one time was put almost completely on hold as countries closed their borders in response to Coronavirus, further exacerbating the issue of recruitment from outside of the UK.  The care sector was and continues to be highly impacted by the shrinking pool of available workers. It is estimated that 115,000 adult care workers are recruited from other EU countries.  As a result, a sponsor license is essential.

Holding a sponsor license enables an employer to sponsor most types of workers from outside the UK. Only organisations, not individuals, can be licensed sponsors. To secure a sponsor license, an organisation must make an application to the Home Office and pay the relevant application fees. A sponsor licence will only be granted if the organisation can show the roles for which it is recruiting and the workers it intends to sponsor, meeting the eligibility requirements.  Once granted, the organisation must also have HR systems in place that comply with onerous sponsorship compliance duties. The organisation can then issue Certificates of Sponsorship to workers so that they can apply for the required visa to carry out the role in the UK.

This type of immigration work for care home and healthcare providers is typical for Melissa and the Immigration team at Sherrards. If you have any questions, feel free to reach out to our team on the details below.

No one is in any doubt that in various sectors, there is a skills shortage affecting not just the UK but the whole world. This, together with the immigration changes introduced by the UK Government earlier this year and the inherent difficulties in bringing staff into the country because of Brexit, is making it on some occasions tricky for employers to find the staff they need.

When the employer has finally found the ideal candidate, the legal obligation to conduct basic checks on every UK-based employee to verify that they have the required permission to work in the UK must be carried out before they can start work. These must be carried out indiscriminately on all potential employees, regardless of their nationality, race, or ethnicity. Sometimes these checks result in questions about the authenticity of the documents provided.

After the hard search, whilst it may be tempting to overlook the reliability of such documents, employers need to be vigilant about the Right to Work checks as the repercussions of getting this wrong for both the business and the individual(s) carrying out the check by way of civil and criminal penalties are severe and may have lasting implications.

During the COVID-19 pandemic, rules were introduced to make the right to work checks slightly easier to carry out, these could be made via video and by using copied rather than original documents. This flexibility was removed back in October and what follows below, is a recap of the checks involved along with the potential fines for non-compliance:

What are right to work checks?

Right to work checks involve the process of UK employers verifying an individual’s eligibility to legally work within the UK, on either a full-time or temporary basis. There is also a review of the type of work to be undertaken by the proposed individual as it is important to ensure that both aspects of the checks are fully compliant with Home Office regulations.

Are right to work checks mandatory?

All employers are legally required to conduct detailed checks and to formally record their findings. In the event of any alleged breach, employers may be able to rely upon a statutory defence if they are able to demonstrate consistent and compliant measures were undertaken during the hiring of individuals, who require permission to work in the UK.

 What are the necessary steps that must be taken by employers to ensure a right to work check is compliant?

There are three steps to be undertaken to ensure that a right to work check is compliant:

Step 1 –obtain all relevant documentation

Step 2 –check all documentation is valid and compliant

Step 3 –retain copies of all submitted items and completed checks

 Is there a specific way in which right to work checks must be conducted?

 All UK employers have to conduct their employee right to work checks manually, in person or through compliant Home Office processes via the online Identity Service Provider (IDSP). All checks must be carried out on all potential applicants, regardless of race, ethnicity, or nationality.

Are there any additional services that employers can use to carry out compliant right to work checks?

There is a free, online Employer Checking Service (ECS) available to all employers allowing them to fulfil their duty to conduct right to work checks.

This service provides an almost instant immigration status check and can be used in circumstances where potential employees are unable to provide acceptable documentation at the time of the manual documentation checking; which can happen where potential employees are awaiting Home Office decisions on pending applications, reviews or appeals.

Are there any penalties for non-compliant employers?

Failure to perform right to work checks correctly can result in serious enforced ramifications, including:

• Criminal Prosecution (of up to 5 years on average)
• Civil penalty fines of up to £20,000 per breach (per illegal employee)
• Sponsor Licence suspension / revocation (or down-grading) which can have a serious effect on business plans.
• Enforced debt action
• County Court judgement
• Business closure

How can a solicitor help with right to work checks?

Right to work checks are a mandatory, legal requirement. Online or digital checks require the employer to check the relevant document or information online and retain a record of the check.

Employers are not expected to be experts on fraud detection – but there are certain expectations on employers to perform their legislative duties under the prevention of the illegal working regime and the Code of Practice for employers.

There are also previous Codes of Practice which may apply when the period of employment started during the time that the previous code was current, and where no repeat check of an existing employee’s right to work has been required.

If an employer fails to carry out its checks correctly, the business will find itself at significant risk of facing one of the above stated penalties. An employer who knowingly employs someone without the correct immigration status may be committing a criminal offence.

It is therefore always advisable for employers to seek specialist immigration advice at each stage of the employment process, particularly since the sweeping changes set out in our immigration briefing earlier this year can now be seen in the existence of a new set of visas which may not be as familiar to the employer, with different checks required for different visas.