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07 January 2025

UK prohibits sponsors from recouping additional sponsorship-related costs from Skilled Workers

Effective 31 December 2024, sponsors are no longer permitted to recoup additional sponsorship-related costs from Skilled Workers. These include administrative fees and costs related to applying for a sponsor licence or adding the Skilled Worker licence tier to an existing licence. Under the updated guidance, sponsors are prohibited from transferring the fees incurred on obtaining a Skilled Worker sponsor licence or certificate of sponsorship to the workers they sponsor, similar to the existing prohibition on passing on the immigration skills charge. The consequences for sponsors that fail to comply are detailed in Annex C2 of Part 3 of the guidance, which outlines that the Home Office will normally revoke these companies' sponsor licence.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2025-0147

 
 

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