Important Updates
Important Updates
September 23, 2025 | United StatesThe Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?
September 24, 2025 | ChileChile: Visa-Free Travel Now Available for Australian Visitors
September 24, 2025 | United StatesReuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul
September 23, 2025 | United KingdomCNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa
September 23, 2025 | PortugalPortugal: Temporary Residence Permit Appointment Delay Causing Travel Issues
September 23, 2025 | United StatesThe Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?
September 24, 2025 | ChileChile: Visa-Free Travel Now Available for Australian Visitors
September 24, 2025 | United StatesReuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul
September 23, 2025 | United KingdomCNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa
September 23, 2025 | PortugalPortugal: Temporary Residence Permit Appointment Delay Causing Travel Issues
September 23, 2025 | United StatesThe Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

United Kingdom: Clarification on Costs That Can be Recouped from Sponsored Workers

September 4, 2025

insight-news-default

Country / Territory

  • United KingdomUnited Kingdom

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The UK Home Office has recently provided clarity on costs that can and cannot be recouped from sponsored workers.
  • It has also clarified the meaning of rules introduced in April 2025 on costs that can be claimed back but that will reduce the salary of Skilled Workers for the purposes of the minimum salary calculation.
  • Sponsors of foreign workers in the United Kingdom should ensure that they comply with policies on recoupment of fees, as failing to comply with these requirements could lead to refused or curtailed visa applications, and/or adverse action being taken against a sponsor’s licence.

The situation

The UK Home Office has recently provided clarity on costs that can and cannot be recouped from sponsored workers. Due to increasing sponsorship costs, it is important that sponsors understand what they can lawfully recoup from workers and what costs need to be covered by sponsors in order to remain compliant with the law.

A closer look

  • Examples of costs that can never be reclaimed from any sponsored worker:
      • Licence fees (and associated legal costs for applying for or maintaining the licence);
      • Certificate of Sponsorship (CoS) fees;
      • Immigration Skills Charges; and
      • Legal fees that relate to assigning a CoS.
  • Skilled Worker costs that can be reclaimed. The following are examples of costs that can be reclaimed from Skilled Workers, but are deemed ‘business costs, immigration costs or investment’ and therefore reduce the salary for the purposes of minimum salary level (MSL) calculation include:
      • Visa fees;
      • Immigration Health Surcharge (IHS);
      • Priority fees (only where the worker had a genuine choice);
      • Legal fees relating to a visa application (only where the worker had a genuine choice); and
      • Dependant fees.

  • Clawback clauses which are conditional (where repayments only need to be made if the worker leaves their employment early) are not considered to be deductions from salary for the purpose of the rule. However, they must be reasonable and not in place to prevent sponsored employees from leaving their employment.
  • Loans. Genuine loan arrangements should not impact MSL calculations. However, where a sponsor is paying directly for items or costs (such as IHS) and then recouping from the applicant, this is not considered a loan and will impact the MSL.
  • Implementation. The rule on MSL calculations sets out how salaries will be considered at the application stage for Skilled Worker visas submitted on or after April 9, 2025. The Home Office is not reassessing salaries set out in past applications. However, the prohibition on passing on associated legal fees for Skilled Worker CoS issuance is applied from December 31, 2024, and not when the guidance was clarified in April.
  • Calculation. Deductions will be averaged over the duration of the visa for the purpose of salary confirmation, rather than calculated at the actual repayment rate.

Background

On April 9, 2025, a new salary deduction rule came into force for Skilled Workers, as reported in our alert, updated March 12, 2025. This rule affects how the Home Office calculates whether a worker’s salary meets the minimum threshold. This rule is designed to prevent salary thresholds from being met through certain payments made by employees themselves.

The changes in April also clarified a change in December 2024 that legal fees in relation to assigning a Skilled Worker CoS cannot be reclaimed and extended this to other sponsorship.

Impact

Employers should ensure that their policies on recoupment of fees comply with these rules and that permitted recoupments are factored into salary calculations.

Failure to comply with these requirements could lead to refused or curtailed visa applications, and/or adverse action being taken against a sponsor’s licence.

Looking ahead

The clarification demonstrates the UK Home Office’s intention to restrict the practice of recovering sponsorship costs from sponsored workers and to ensure that Skilled Workers receive the salary offered to them.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • United KingdomUnited Kingdom

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Reuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul

Partner Bo Cooper discusses the $100,000 H-1B fee and its impact on financial, banking and technology firms relying on international talent.

Learn more

Media mentions

CNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa

Partner Louise Haycock highlights how the UK's immigration system and Skilled Worker visa changes support employers in planning talent pipelines.

Learn more

Media mentions

The Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?

Partner Audrea Golding explains how the $100,000 H-1B fee could affect hiring across the tech industry.

Learn more

Blog post

Visa Applications and Document Services: Avoiding Delays and Ensuring Compliance

Immigration Supervisor Nathalie Pimenta and Immigration Programme Manager Frida Sakaj discuss the importance of planning visa applications and document services early to avoid delays and ensure compliance with UK regulations.

Learn more

Fragomen news

2025年9月22日 アメリカ移民法速報Learn more

Media mentions

Gazeta Prawna: Nowe przepisy o zatrudnianiu cudzoziemców 2025. Spada liczba zezwoleń na pracę

Partner Karolina Schiffter discusses how new regulations have led Polish companies to adjust their use of work permits.

Learn more

Media mentions

Human Resources Manager: Flucht und Arbeitsmigration: (noch) ein Dickicht in der Behördenlandschaft

Partner Marius Tollenaere examines Germany’s immigration administration and strategies to support skilled labor.

Learn more

Media mentions

The Associated Press: What to Know About the H-1B Visa Trump Has Targeted With $100,000 Fees, Generating Confusion, Fear

Partner Bo Cooper discusses the potential implications of the $100,000 H-1B fee for employers, universities and research programs relying on international talent.

Learn more

Blog post

The Future of UK Residency and Citizenship: Longer Waits, Tougher Rules?

Partner Natasha Catterson discusses how proposed changes to UK residency and citizenship rules could affect immigration planning and applicant eligibility.

Learn more

Fragomen news

Partner Julia Onslow-Cole Featured in Financial Times Spotlight on 2025 Innovative Lawyers Europe Awards

Partner Julia Onslow-Cole is recognised for her work shaping global immigration and workforce mobility.

Learn more

Awards

Fragomen Receives Ally in Action Award from Oasis Legal Services

Fragomen was recognized by Oasis Legal Services with the Ally in Action Award at their 8th Annual Community Celebration: Liberation Sounds Like Us, which took place on September 12, 2025 in Oakland, California.

Learn more

Video

Summer 2025 Highlights | #FragomenFC - Ep. 11

Fragomen FC hosts recap major international football transfers and tournaments played this summer.

Learn more

Media mentions

Reuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul

Partner Bo Cooper discusses the $100,000 H-1B fee and its impact on financial, banking and technology firms relying on international talent.

Learn more

Media mentions

CNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa

Partner Louise Haycock highlights how the UK's immigration system and Skilled Worker visa changes support employers in planning talent pipelines.

Learn more

Media mentions

The Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?

Partner Audrea Golding explains how the $100,000 H-1B fee could affect hiring across the tech industry.

Learn more

Blog post

Visa Applications and Document Services: Avoiding Delays and Ensuring Compliance

Immigration Supervisor Nathalie Pimenta and Immigration Programme Manager Frida Sakaj discuss the importance of planning visa applications and document services early to avoid delays and ensure compliance with UK regulations.

Learn more

Fragomen news

2025年9月22日 アメリカ移民法速報Learn more

Media mentions

Gazeta Prawna: Nowe przepisy o zatrudnianiu cudzoziemców 2025. Spada liczba zezwoleń na pracę

Partner Karolina Schiffter discusses how new regulations have led Polish companies to adjust their use of work permits.

Learn more

Media mentions

Human Resources Manager: Flucht und Arbeitsmigration: (noch) ein Dickicht in der Behördenlandschaft

Partner Marius Tollenaere examines Germany’s immigration administration and strategies to support skilled labor.

Learn more

Media mentions

The Associated Press: What to Know About the H-1B Visa Trump Has Targeted With $100,000 Fees, Generating Confusion, Fear

Partner Bo Cooper discusses the potential implications of the $100,000 H-1B fee for employers, universities and research programs relying on international talent.

Learn more

Blog post

The Future of UK Residency and Citizenship: Longer Waits, Tougher Rules?

Partner Natasha Catterson discusses how proposed changes to UK residency and citizenship rules could affect immigration planning and applicant eligibility.

Learn more

Fragomen news

Partner Julia Onslow-Cole Featured in Financial Times Spotlight on 2025 Innovative Lawyers Europe Awards

Partner Julia Onslow-Cole is recognised for her work shaping global immigration and workforce mobility.

Learn more

Awards

Fragomen Receives Ally in Action Award from Oasis Legal Services

Fragomen was recognized by Oasis Legal Services with the Ally in Action Award at their 8th Annual Community Celebration: Liberation Sounds Like Us, which took place on September 12, 2025 in Oakland, California.

Learn more

Video

Summer 2025 Highlights | #FragomenFC - Ep. 11

Fragomen FC hosts recap major international football transfers and tournaments played this summer.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.