In the UK's immigration system, employers seeking to hire overseas workers under skilled worker routes or extend work permits for current sponsored employees must possess a valid sponsor licence. This licence requires periodic renewal and paying the appropriate renewal fees. Understanding these fees is vital for employers to maintain their ability to sponsor workers effectively.Variation in sponsor licence renewal fees:The cost of renewing a sponsor licence varies based on the size and turnover of the organisation. Different rates are applicable for large sponsors, small sponsors, charities, and educational institutions. Paying the correct fee is critical; any error in fee payment can lead to the rejection of the renewal application.Fee structure for different licence types:

• Worker Sponsor Licence (Large Sponsors): £1,476
• Worker Sponsor Licence (Small Sponsors): £536
• Student Sponsor Licence: £536
• Temporary Worker Sponsor Licence: £536
• Combined Licences: For large sponsors holding a combination of Worker, Temporary Worker, and/or Student Sponsor Licences, the fee remains £1,476. If a large sponsor currently holds a Temporary Worker and/or Student Sponsor Licence and is applying for a Worker Sponsor Licence, the fee is £940.

Determining organisation size:The classification of an organisation as 'small' follows the definition set out in the Companies Act 2006. To qualify as a small company, at least two of the following criteria must be met:

• Annual turnover: Not more than £10.2 million.
• Balance sheet total: Not more than £5.1 million.
• Average number of employees: Not more than 50.

Organisations not meeting these criteria are considered medium or large and are subject to the higher fee bracket.Employers must be diligent in assessing their organisation's size and ensuring that the correct fee is paid to avoid any disruption in their ability to sponsor foreign workers.Get in touch: For a comprehensive understanding of your options or queries on UK immigration matters, reach out to GigaLegal at 02074067654 or click here to book a no-obligation consultation with an immigration expert.