Guide
Sponsor licence fee for a small company: the size test that sets it
Updated
Sponsor size is not self-declared preference, it is a statutory test, and it changes both the licence fee and every year of skills charge you pay. Getting it right is worth real money either way.
The test
You qualify as a small sponsor if you meet at least two of the following in a financial year, the Companies Act small company conditions as applied by the sponsorship rules: annual turnover of £15 million or less, total assets of £7.5 million or less, and 50 employees or fewer. Registered charities pay the small-sponsor rates regardless of size. These thresholds were raised in April 2025; if your figures sit near a limit, confirm the current thresholds on gov.uk or with your accountant before applying.
What the classification is worth
| Fee | Small / charity | Medium or large | Difference |
|---|---|---|---|
| Worker licence application | £611 | £1,682 | £1,071 |
| Immigration Skills Charge, first 12 months | £480 | £1,320 | £840 |
| Immigration Skills Charge, 5-year sponsorship | £2,400 | £6,600 | £4,200 |
Over one five-year Skilled Worker sponsorship, the size classification alone moves the bill by more than £5,000. Multiply by several sponsored workers and it is often the largest single variable in a sponsorship budget.
Getting it right
- Use your filed accounts: the test uses the same figures as your Companies Act size classification, so your accountant can confirm it quickly.
- Declare accurately. Claiming small-sponsor rates you are not entitled to is the kind of error that invites Home Office scrutiny of the whole application.
- If you outgrow the small thresholds, expect the higher Immigration Skills Charge on future certificates; the change does not refund or backdate.
- Group structures complicate the test; take advice if your company is part of a group, since the assessment may not stop at the applying entity.
This is general information, not legal advice. The size thresholds are set by legislation and applied by Home Office guidance; check gov.uk for the current figures, and take advice on anything borderline.