Hiring skilled workers from outside the UK can be a great way to access talent, but there are key legal, financial, and procedural considerations every employer must be aware of. With recent changes to visa requirements, understanding the ins and outs of the Skilled Worker Visa has never been more important.
In this guide, we’ll walk you through everything you need to know about hiring skilled workers on a visa in the UK, including eligibility, salary requirements, the sponsorship process, and what you’ll need to pay in National Insurance (NI) and taxes.
What is the Skilled Worker Visa?
The Skilled Worker Visa allows non-UK nationals to work in the UK in a specific job for an approved employer. It replaced the Tier 2 (General) visa and is one of the primary ways businesses can hire international talent. The visa is available to workers in various sectors, such as healthcare, IT, engineering, and finance, provided they meet specific eligibility criteria.
To qualify for a Skilled Worker Visa, the employee must:
- Have a job offer from a licensed sponsor (your business).
- The job must be at a required skill level (RQF Level 3 or above).
- Meet the required salary threshold (more on this below).
New Salary Threshold Requirements (April 2024 Changes)
From April 2024, the UK government has introduced new salary rules for sponsoring workers on this visa. Employers must offer a minimum salary of £38,700 per year or the going rate for the job, whichever is higher. If your job’s going rate is higher than £38,700, you must meet that rate..
For a detailed breakdown of how much NI and tax you'll need to pay for a salary of £38,700, check out our full post on the New Skilled Worker Salary Threshold: How much NI & Tax Do I Have to Pay?
How to Apply for a Sponsorship License
Check Eligibility – Ensure your business meets the requirements to become a sponsor, including having appropriate HR systems in place to monitor visa workers.
Apply for a Sponsorship Licence – Submit an online application through the UK Home Office website, pay the relevant fees, and provide supporting documents. Avoid common mistakes that could lead to rejection by reading our guide on Top Five Reasons Your Sponsor Licence Application Can Be Refused.
Receive Your Licence Rating – If approved, you’ll receive an A-rated licence, allowing you to assign Certificates of Sponsorship (CoS) to workers.
Assign a Certificate of Sponsorship – Once you’ve identified a suitable candidate, you’ll issue a CoS, which they’ll use to apply for their visa.
Ensure Compliance – As a sponsor, you must adhere to reporting and compliance requirements to maintain your licence.
Costs Involved in Sponsoring a Skilled Worker
Sponsoring a skilled worker comes with several costs, including:
Sponsorship Licence Fee – £536 for small businesses/charities and £1,476 for larger organisations.
Certificate of Sponsorship (CoS) Fee – £199 per worker.
Immigration Skills Charge – £364 per year for small businesses/charities and £1,000 per year for larger employers.
Visa Application Fees – Paid by the worker but can be reimbursed by the employer.
National Insurance and Tax Obligations
Employers must also consider National Insurance and tax contributions when hiring skilled workers. For a salary of £38,700, the employer's NI contributions will typically be around 13.8% on earnings above £9,100 per year. Employees will also have tax and NI deducted from their salary, which you must process through payroll.
Conclusion
Hiring skilled workers on a visa in the UK requires careful planning and compli
ance with immigration laws. By understanding the Skilled Worker Visa requirements, salary thresholds, sponsorship process, and associated costs, businesses can successfully attract and retain international talent.
If you're considering hiring a skilled worker and need expert guidance, get in touch with us for a free consultation. For more insights into financial transitions, check out our guide on How to Move to Universal Credit from Legacy Benefits.
