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Yes, small businesses can sponsor foreign workers in the UK, but there have been extensive changes in the rules in July 2025, and not all roles or business types are eligible any longer. If you are an SME considering overseas recruitment, then it is important to understand the latest UK Skilled Worker Visa requirements prior to putting time and money into the process.
Quick Facts: UK Skilled Worker Visa for Small Businesses (2026)
| Factor | Detail |
| Minimum salary threshold | £41,700 per year |
| Qualification level required | Degree-level (RQF Level 6+) |
| Sponsor licence fee (small business) | £611 |
| Fees for sponsorship licence (large business, over 50 employees) | £1,682 |
| Immigration Skills Charge | £364/year (small), £1,000/year (large) |
| Visa granted (12 months up to March 2026) | 68,067 (down 30% year-on-year) |
| Licences revoked in 2025 | 3,299 |
| Approved UK sponsors | 120,000+ |
What Changed in July 2025 — and What It Means in 2026
There has been a significant increase in the requirements of the UK Skilled Worker Visa in the UK Home Office. Sponsored roles are from the graduate level, and must be paid at least £41,700 per year, from July 2025. New sponsorship is no longer possible in non-graduate occupations, such as shop managers, taxi drivers, food preparation workers and more.
In addition, there are new requirements for high English language standards, which will also be in effect from January 2026 – these are another string of criteria that employers and applicants will need to meet.
The result? The number of skilled Worker visas granted in the 12 months to March 2026 has fallen by 30% compared with the previous year. Approved applicants are now mostly IT professionals and those in finance.
Can Small Businesses Still Get a Sponsor Licence?
Yes, provided the role and the business are eligible for the Home Office. Smaller businesses (less than 50 employees) incur a reduced charge for a sponsor licence of £611, compared to £1,682 for larger businesses.
Getting on the list of approved sponsors, however, is only the first step. The Home Office checks that the job is genuine, at a graduate level and is consistent with the real business that the company operates. For instance, a high street shop would find it difficult to attract a degree-level job with the current UK Skilled Worker Visa system.
For some industries, such as technology, finance, engineering and healthcare (shortage jobs), there remains a practical necessity for SME sponsorship.
What You Need to Sponsor Foreign Workers: A Step-by-Step Overview
Apply for a UK Skilled Worker sponsor licence — Make an application to the Home Office to apply for a sponsor licence and submit relevant documents to demonstrate that you own a legal and HR compliant business.
- Meet the eligibility criteria: The Home Office may visit your business premises. There is a need for right to work checks, Genuine vacancy checks and HR management systems which are fit for purpose.
- Issue Certificates of Sponsorship (CoS): Once you have your licence you will generate a Certificate of Sponsorship (CoS) for each person you wish to sponsor. This is specific to a role and salary package.
- The overseas worker applies for a visa using CoS as a reference: The overseas worker applies for the UK Skilled Worker Visa, citing the CoS number.
- Improve Immigration Skills Payment for Charge: Small businesses pay £364 a year for each sponsored person, large businesses pay £1,000 a year.
- Tracking, reporting and recording: Visa holders must be tracked and their progress reported and recorded. If you don’t you could lose your license.
Roles Still Eligible vs. Ineligible
| Still Eligible (examples) | Now Ineligible (examples) |
| Software developers | Shop managers |
| Finance analysts | Taxi drivers and chauffeurs |
| Nurses and health care workers | Sales and retail assistants |
| Occupations that are in short supply (such as Bricklayers, Nursing Assistants) | In most situations, a chef (as in a kitchen) |
| Engineering roles | Food preparation workers |
There are some exemptions to shortage occupations, so be sure to see the current shortage occupation list before ruling out a position.
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The Cost of Sponsor Licence for Small Businesses in 2026
In addition to the application fee of £611, small businesses can expect to pay for:
- Immigration Skills Charge: £364 per worker, per year
- Legal/Advisory fees: This is variable and is normally £1,500-£3,000+ for end-to-end support.
- Certificate of Sponsorship fee: £239 per worker.
- Internal HR systems or software will be needed for right-to-work compliance costs.
When all fees and admin are taken into account, it is easy to see that costs for each sponsored worker could be upwards of £5,000 per year in the first year alone — so it’s worth making sure that the role really meets the criteria for sponsoring before you proceed.
FAQs
Is it possible for a start-up or extremely small business to obtain a UK Skilled Worker sponsor licence?
There is no minimum size to be considered. But you will need to show you’re trading properly, that your business can afford to pay the salary you need to pay, and that you have appropriate HR processes.
If the job is not at the graduate-level, what then?
The Home Office will probably refuse the visa application even though you may have a sponsor licence. Licensing does not guarantee individual visa approvals; roles need to be appropriate both in skill level and salary.
What about any industries where SMEs have an easier route to travel?
The clearest career paths are generally in tech, healthcare (shortage occupations) and professional services. The current UK Skilled Worker Visa rules are significantly more stringent for retail, hospitality and transport business owners.
What is a Certificate of Sponsorship?
A CoS is a unique reference that is given by the sponsoring employer to a specific worker for a specific role. It is not a certificate; it is an electronic record that the worker will use when applying for a visa.
What about businesses that are already sponsoring workers in ineligible positions continuing to sponsor workers in these positions?
Ineligible roles cannot have a new sponsorship assigned. But workers who are sponsored before the July 2025 rule change will continue to work until their visa expires.
Small business recruitment processes have become more complicated and more expensive in the UK for overseas workers, but it can still be done for the right roles and in the right industry. The important point is that the work really meets the requirements of the new UK Skilled Workers visa program — before you invest money in a licence, a CoS or legal costs.
