Guide
Sponsor licence fee for a small company: the size test that sets it
Updated
Sponsor size is a statutory test, not a preference you declare, and it sets the licence fee and every year of skills charge. Getting it right is worth real money.
Get adviser quotes Two minutes of questions; immigration advisers experienced in sponsor licence work quote you directly. Free, no obligation.
The test
You qualify as a small sponsor if you meet at least two of these 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.
- 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.