• 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

Fragomen on immigration

Business Immigration After the Midterms (Part 1): What to Expect No Matter What

Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.

Learn more

Media mentions

Business Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.

Counsel Brian Hunt said employers quickly sought clarity after a USCIS memo on green card adjustment of status raised questions about immigration timelines, work continuity and travel planning.

Learn more

Awards

Fragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia

Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.

Learn more

Media mentions

USA Today: USCIS Green Card Announcement Spurs Confusion. What to Know

Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.

Learn more

Article

Commonwealth Games 2026 Travel Planning: UK ETA Rules for Teams and Fans

Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.

Learn more

Media mentions

The Associated Press: Trump’s Latest Immigration Move Clouds the Path to Green Cards

Partner Kevin Miner discusses the expected impact of new USCIS green card guidance on employment-based immigration, noting dual-intent visa cases would likely continue under business as usual with no significant impact.

Learn more

Media mentions

The Wall Street Journal: What to Know About the Trump Administration’s New Green Card Policy

Partner K. Edward Raleigh discusses a recent USCIS memo that appears to signal greater caution in how adjudicators assess adjustment of status cases rather than establishing a new legal standard.

Learn more

Fragomen news

2026年5月 アメリカ移民法ダイジェストLearn more

Video

Germany Health Insurance Requirements for Visas: What You Need to Know

Senior Manager Sumejja Handzo outlines Germany’s health insurance requirements for visas and residence permits, including coverage options, documentation considerations and key compliance requirements for foreign nationals relocating to Germany.

Learn more

Media mentions

ABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?

Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.

Learn more

Article

Beyond Temporary Protection: Why Europe Needs Clear Exit Pathways

Knowledge Management Manager Annabelle Duchêne explores how Europe’s prolonged reliance on Temporary Protection Status has created legal and workforce uncertainty and why clear, structured exit pathways are now essential for employers and displaced individuals alike.

Learn more

Article

Saudi Arabia: Premium Residency, Property Ownership and Compensation Structuring Under Vision 2030 - Part 2

Destination Services Director Christine Sperr examines how Saudi Arabia’s evolving Premium Residency framework and newly expanded foreign property ownership rules are reshaping the Kingdom’s appeal for internationally mobile professionals, global employers and institutional investors.

Learn more

Fragomen on immigration

Business Immigration After the Midterms (Part 1): What to Expect No Matter What

Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.

Learn more

Media mentions

Business Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.

Counsel Brian Hunt said employers quickly sought clarity after a USCIS memo on green card adjustment of status raised questions about immigration timelines, work continuity and travel planning.

Learn more

Awards

Fragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia

Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.

Learn more

Media mentions

USA Today: USCIS Green Card Announcement Spurs Confusion. What to Know

Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.

Learn more

Article

Commonwealth Games 2026 Travel Planning: UK ETA Rules for Teams and Fans

Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.

Learn more

Media mentions

The Associated Press: Trump’s Latest Immigration Move Clouds the Path to Green Cards

Partner Kevin Miner discusses the expected impact of new USCIS green card guidance on employment-based immigration, noting dual-intent visa cases would likely continue under business as usual with no significant impact.

Learn more

Media mentions

The Wall Street Journal: What to Know About the Trump Administration’s New Green Card Policy

Partner K. Edward Raleigh discusses a recent USCIS memo that appears to signal greater caution in how adjudicators assess adjustment of status cases rather than establishing a new legal standard.

Learn more

Fragomen news

2026年5月 アメリカ移民法ダイジェストLearn more

Video

Germany Health Insurance Requirements for Visas: What You Need to Know

Senior Manager Sumejja Handzo outlines Germany’s health insurance requirements for visas and residence permits, including coverage options, documentation considerations and key compliance requirements for foreign nationals relocating to Germany.

Learn more

Media mentions

ABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?

Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.

Learn more

Article

Beyond Temporary Protection: Why Europe Needs Clear Exit Pathways

Knowledge Management Manager Annabelle Duchêne explores how Europe’s prolonged reliance on Temporary Protection Status has created legal and workforce uncertainty and why clear, structured exit pathways are now essential for employers and displaced individuals alike.

Learn more

Article

Saudi Arabia: Premium Residency, Property Ownership and Compensation Structuring Under Vision 2030 - Part 2

Destination Services Director Christine Sperr examines how Saudi Arabia’s evolving Premium Residency framework and newly expanded foreign property ownership rules are reshaping the Kingdom’s appeal for internationally mobile professionals, global employers and institutional investors.

Learn more
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
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese 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

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • 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
Important Updates
Important Updates
May 28, 2026 | AustraliaFragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia
May 29, 2026 | BermudaBermuda: New Work Permit Policy to Prolong Processing Times
May 29, 2026 | FranceFrance: EU Blue Card Rules Relaxed
May 29, 2026 | IrelandIreland: Occupation Lists Changes Published,“50:50” Rule Modification Proposed
May 28, 2026 | United StatesBusiness Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.
May 28, 2026 | AustraliaFragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia
May 29, 2026 | BermudaBermuda: New Work Permit Policy to Prolong Processing Times
May 29, 2026 | FranceFrance: EU Blue Card Rules Relaxed
May 29, 2026 | IrelandIreland: Occupation Lists Changes Published,“50:50” Rule Modification Proposed
May 28, 2026 | United StatesBusiness Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.
May 28, 2026 | AustraliaFragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia
Subscribe

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
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

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

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

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

© 2026 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.