UK Skilled Visa Sponsorship: A Special Guide for the Tech Sector

The UK tech sector is experiencing unprecedented growth, with the digital economy contributing over £150 billion annually to the national GDP. As British tech companies scale rapidly, access to international talent has become not just advantageous but essential. The UK’s Skilled Worker visa route offers a structured pathway for tech employers to recruit globally, but navigating the sponsorship system requires careful understanding of requirements, costs, and strategic considerations.

Understanding the Skilled Worker Visa Framework

The Skilled Worker visa replaced the Tier 2 (General) visa in December 2020, introducing a points-based immigration system designed to attract highly skilled professionals. For tech companies, this route has become the primary mechanism for hiring international talent, from software engineers to data scientists.

The Points-Based System

Applicants must accumulate 70 points to qualify for a Skilled Worker visa. The points breakdown is:

Mandatory requirements (50 points):

• Job offer from a licensed sponsor: 20 points
• Job at appropriate skill level (RQF Level 3 or above): 20 points
• English language proficiency at B1 level: 10 points

Tradeable requirements (20 points needed):

• Salary of £38,700+ or the going rate for the role: 20 points
• Job in a shortage occupation: 20 points
• PhD relevant to the job: 10 points
• PhD in STEM subject relevant to the job: 20 points

For the tech sector, most roles qualify under the standard route, with many positions also appearing on the Immigration Salary List (previously called the Shortage Occupation List), which can reduce salary thresholds.

Becoming a Licensed Sponsor

Before hiring international workers, tech companies must obtain a sponsor licence from UK Visas and Immigration (UKVI). This process involves demonstrating that your organization is genuine, operating lawfully, and capable of fulfilling sponsorship duties.

Application Requirements

Documentation needed:

• Evidence of trading in the UK (accounts, VAT returns, business contracts)
• Details of HR systems and record-keeping procedures
• Proof of business premises
• Information about key personnel who will manage sponsorship
• Confirmation of compliance with employment and immigration law

Key personnel roles:

• Authorising Officer: Senior individual with overall responsibility
• Key Contact: Day-to-day liaison with UKVI
• Level 1 User: Can assign Certificates of Sponsorship and manage the system

Costs and Timeline

• Application fee: £536 for small sponsors (fewer than 50 employees) or charitable organizations; £1,476 for medium/large organizations
• Processing time: Typically 8 weeks, though complex applications may take longer
• Validity: Licence lasts 4 years before renewal

The Home Office conducts thorough due diligence, including potential site visits and verification of submitted documents. Tech startups should be particularly careful to demonstrate operational substance and genuine trading activity.

Tech-Specific Roles and Salary Thresholds

The tech sector benefits from several occupations being designated as shortage roles, where lower salary thresholds apply and additional points are awarded.

Common Tech Roles on the Immigration Salary List

Engineering and development:

• Programmers and software development professionals (SOC 2136)
• IT business analysts, architects, and systems designers (SOC 2135)
• Cyber security specialists (part of SOC 2139)

Specialized positions:

• Data scientists and analysts (SOC 2425, 2433)
• Product managers in tech (under specific circumstances)
• DevOps engineers and infrastructure specialists

Salary Requirements

Standard threshold: £38,700 per annum or the going rate for the occupation code, whichever is higher

Reduced thresholds apply for:

• New entrants (recent graduates, those under 26, or career switchers): £30,960 minimum
• Shortage occupations: £30,960 or 80% of the going rate
• PhD holders: Potential 10-20% reduction

For tech roles, “going rates” vary significantly. A Senior Software Engineer might require £45,000+, while a Lead Data Scientist could need £55,000+. Companies must check the specific going rate for each occupation code in the Immigration Rules Appendix.

The Certificate of Sponsorship Process

Once licensed, sponsors assign a Certificate of Sponsorship (CoS) to each international hire. This digital document contains details about the job, salary, and employee.

Types of CoS

Defined CoS: Used when the worker is applying from outside the UK or switching from another visa category

Undefined CoS: For workers already in the UK on a Skilled Worker visa switching employers

Assigning a CoS

Information required:

• Full job details including occupation code and duties
• Salary breakdown (basic pay, allowances, guaranteed bonuses)
• Start date and employment location
• Evidence supporting any salary reductions or additional points claims
• Details of any supplementary employment arrangements

Cost: £239 per CoS (£25 for certain shortage occupations or sponsored PhD students)

Annual allocation: Sponsors receive unlimited undefined CoS but may need to request defined CoS allocations from UKVI

Common Pitfalls

• Incorrect occupation codes: Choosing the wrong SOC code can lead to visa refusals
• Insufficient salary: Failing to meet both minimum threshold and going rate
• Inadequate job descriptions: Generic descriptions that don’t match the skill level
• Timing errors: Assigning CoS too early before actual recruitment decisions

Cost Considerations for Tech Employers

Sponsorship involves multiple cost layers that tech companies must budget for, particularly when scaling international hiring.

Direct Immigration Costs

Per employee:

• CoS assignment: £239 (standard) or £25 (shortage/PhD)
• Immigration Skills Charge: £1,000 per year for large sponsors, £364 per year for small sponsors/charities
• Healthcare surcharge: £1,035 per year (paid by employee but often considered in total package)

Example calculation for a 3-year visa (large sponsor):

• CoS: £239
• Skills Charge: £3,000 (3 years × £1,000)
• Total employer cost: £3,239 per hire

For a tech scaleup hiring 10 international engineers, this represents over £32,000 in immigration fees alone, excluding legal costs and administrative time.

Ongoing Compliance Costs

Administrative burden:

• Maintaining sponsor management system records
• Reporting changes (salary, role, address, absences)
• Right to work documentation
• Annual sponsor licence renewal: £536-£1,476 every 4 years

Legal and advisory fees:

• Initial licence application support: £3,000-£8,000
• Ongoing compliance advice: £2,000-£5,000 annually
• Per-case immigration support: £500-£2,000 per employee

Many tech companies employ dedicated immigration coordinators once they reach 20+ sponsored workers.

Strategic Approaches for Tech Companies

Building a Sponsorship-Ready Infrastructure

Before applying for a licence:

1. Establish robust HR systems: Implement digital record-keeping for Right to Work checks, contracts, and absence tracking
2. Develop clear immigration policies: Document procedures for requesting sponsorship, reporting changes, and handling compliance issues
3. Train key personnel: Ensure Authorising Officers and Key Contacts understand their legal obligations
4. Create template job descriptions: Maintain a library of compliant job specs aligned with SOC codes

Optimizing Recruitment Processes

For international hiring:

• Build salary bands that accommodate visa thresholds across seniority levels
• Consider remote work options where overseas candidates can contribute before visa approval
• Establish relationships with immigration lawyers for rapid CoS reviews
• Create onboarding materials explaining UK visa requirements to candidates

Talent pipeline strategies:

• Target international students graduating from UK universities (new entrant rates apply)
• Recruit from countries with strong tech talent pools (India, EU countries, Nigeria, Pakistan)
• Consider Graduate visa holders already in the UK who can switch to Skilled Worker route
• Explore Global Talent visa for exceptional technical talent (no sponsorship required)

Managing the Immigration Skills Charge

The Immigration Skills Charge is designed to incentivize domestic training but represents significant cost for scale-ups. Strategies to manage this:

Qualify as a small sponsor: If under 50 employees, the charge drops from £1,000 to £364 per year per worker—a 64% reduction

Prioritize longer visas: While the charge scales with visa length, longer initial visas reduce per-year administrative costs

Consider company structure: Separate entities may qualify for small sponsor rates individually

Factor into compensation negotiations: While the charge isn’t transferable to employees, total hiring costs should inform package competitiveness

Compliance and Sponsor Duties

UKVI imposes strict duties on sponsors, with non-compliance potentially resulting in licence suspension or revocation—catastrophic for tech companies reliant on international teams.

Mandatory Reporting Requirements

Report within 10 working days:

• Sponsored worker doesn’t start on stated date
• Significant salary reductions (below 90% of stated amount)
• Employee takes unauthorized absence of 10+ days
• Role changes that affect skill level or salary
• Promotion or job title changes
• Employee changes work location
• Cessation of employment for any reason
• Criminal convictions relevant to employment
• Suspected document fraud or false representations

Additional monitoring:

• Maintain contact details for all sponsored workers
• Retain copies of Right to Work documents for 6 years
• Keep evidence of salaries paid (payslips, P60s)
• Monitor that employees are performing the role described in the CoS

Audit and Inspection Preparedness

UKVI conducts unannounced compliance visits. Tech companies should:

Maintain readily accessible records:

• Sponsor management system (SMS) activity logs
• Employment contracts and job descriptions
• Payroll records demonstrating salary payments
• Right to Work documentation with dates checked
• Evidence of reporting (screenshots of SMS reports filed)

Prepare key personnel: Authorising Officers and Key Contacts should be briefed on what inspectors may request and have authority to access records quickly

Document training: Keep records of immigration training provided to HR and management teams

Common Compliance Failures

Red flags that trigger Home Office scrutiny:

• Multiple employees working at locations different from those stated
• Salary payments below CoS amounts
• Sponsored workers not appearing on company systems or payroll
• Failure to report cessations of employment
• Generic or inappropriate job duties for the SOC code
• Employees primarily working for a third party (disguised contracting)

A single serious breach or pattern of minor breaches can result in licence downgrade (limiting new CoS assignments) or complete revocation.

Special Considerations for Tech Startups

Early-stage tech companies face unique challenges in sponsorship, primarily around demonstrating viability and genuine trading.

Evidencing Business Legitimacy

Strong supporting documentation:

• Pitch decks and business plans showing viable product/market fit
• Funding agreements (seed investment, venture capital term sheets)
• Letters from customers or partnership agreements
• Financial projections with realistic assumptions
• Evidence of intellectual property (patents, trademarks, software repositories)

Office space considerations:

• Co-working spaces are acceptable if you can demonstrate exclusive use during working hours
• Remote-first companies should evidence communication systems and management structure
• Overseas founders should show UK presence and operational substance

Founder Visa to Employer Sponsor

Many tech founders arrive on Innovator Founder visas or Global Talent visas, then need to sponsor team members. Key considerations:

Timing: Wait until genuine business activity is established (ideally 6+ months of trading)

Role separation: Clearly distinguish between founder roles and positions you’re sponsoring

Proportionality: A pre-revenue startup sponsoring 10 engineers may face skepticism; growth should align with business stage

Brexit Implications and EU Workers

Post-Brexit, EU citizens face the same requirements as other international workers, fundamentally changing talent access for UK tech.

The EU Settlement Scheme Context

EU citizens residing in the UK before January 1, 2021 could apply for settled or pre-settled status, granting continued rights. However:

• New EU hires require sponsorship like any international worker
• No freedom of movement privileges remain
• Irish citizens retain special status and don’t require sponsorship

Comparative Advantages

For EU candidates:

• English language requirement often easily met
• Cultural and time zone alignment
• Geographic proximity facilitates visits and hybrid work
• Strong tech ecosystems in countries like Germany, France, Netherlands, Poland

Strategic recruiting focus:

• Eastern European countries offering excellent value (experienced developers at competitive salaries)
• Southern European markets with surplus tech talent
• Nordic countries for specialized AI and deep tech skills

Alternatives and Complementary Routes

While the Skilled Worker visa serves as the primary route, tech employers should understand alternative options.

Global Talent Visa

For exceptional technical talent, the Global Talent visa offers significant advantages:

• No sponsorship required: Individuals apply independently
• Faster processing: 3 weeks for endorsement plus visa decision
• Flexibility: Can work for multiple employers, be self-employed, or start businesses
• Path to settlement: Indefinite Leave to Remain after 3 years (versus 5 for Skilled Worker)

Endorsement routes for tech:

• Tech Nation endorsement (though this route closed in 2023, equivalent criteria may apply)
• Royal Society or Royal Academy of Engineering endorsements
• Proven track record of innovation (patents, product launches, academic publications)

Employers can support applications by providing evidence of exceptional achievement but don’t sponsor directly.

Temporary Work Visas

For short-term needs:

• Temporary Worker – International Agreement (up to 24 months)
• Intra-Company Transfer for multinational tech companies (requires 12 months employment abroad)

Scale-up Visa

Launched in August 2022, this route targets fast-growing companies:

• Requirements: Company must have achieved 20%+ annualized growth in employees or turnover over 3 years
• Benefits: After 6 months, employees can switch employers without new sponsorship
• Limitations: Still relatively new with limited take-up data

Future-Proofing Your Immigration Strategy

The immigration landscape evolves frequently, with policy changes reflecting economic priorities and political shifts.

Anticipated Developments

Potential policy shifts:

• Periodic salary threshold adjustments (typically reviewed annually)
• Changes to shortage occupation lists based on labor market data
• Enhanced digital right to work checking
• Increased enforcement and compliance audits
• Possible new visa categories targeting specific tech sub-sectors (AI, quantum computing)

Building Resilience

Diversification strategies:

1. Geographic distribution: Balance international hires across multiple locations to reduce single-country dependency
2. Visa mix: Combine Skilled Worker sponsorship with Global Talent encouragement and domestic hiring
3. Remote infrastructure: Build capability to employ workers abroad where visa challenges emerge
4. Settlement focus: Support sponsored workers toward Indefinite Leave to Remain to reduce ongoing sponsorship burden

Staying informed:

• Subscribe to UKVI sponsor newsletters
• Maintain relationships with specialized immigration law firms
• Join tech industry groups sharing immigration insights (TechUK, Tech London Advocates)
• Monitor Home Office policy statements and Immigration Rules changes

Practical Checklist for Tech Employers

Before Starting Sponsorship

• Conduct cost-benefit analysis of sponsorship versus alternatives
• Establish compliant HR systems and record-keeping
• Designate and train key personnel
• Prepare sponsor licence application documentation
• Budget for both direct and indirect costs
• Create immigration policy and internal procedures

During Licence Application

• Submit complete, accurate application with strong supporting evidence
• Respond promptly to any Home Office queries
• Prepare for potential compliance visit
• Set up sponsor management system access
• Develop CoS assignment workflow

Operating as a Sponsor

• Maintain detailed records of all sponsored workers
• Implement calendar reminders for reporting requirements
• Conduct regular internal compliance audits
• Keep abreast of Immigration Rules changes
• Factor immigration timelines into recruitment planning
• Document all SMS activity and reports filed
• Prepare for licence renewal 3-4 months before expiry

Conclusion

UK Skilled Worker visa sponsorship represents both an opportunity and a commitment for tech sector employers. The system provides genuine access to global talent pools that increasingly power British tech success stories—from AI research labs in Cambridge to fintech scale-ups in London to gaming studios in Scotland.

However, sponsorship is not simply a bureaucratic formality. It requires meaningful investment in compliance infrastructure, ongoing administrative attention, and strategic integration into broader talent acquisition approaches. Companies that treat sponsorship as a core capability rather than an occasional necessity position themselves for sustainable international hiring.

For tech employers, the calculus is increasingly clear: in a globally competitive talent market, the ability to sponsor skilled workers isn’t just advantageous—it’s essential to competing for the best minds regardless of where they call home. By understanding the requirements, managing costs effectively, and maintaining rigorous compliance, UK tech companies can harness international talent to drive innovation and growth in an increasingly competitive global economy.

The investment in becoming a licensed sponsor and maintaining that status pays dividends not only in access to talent but in demonstrating to prospective employees that your organization is sophisticated, internationally minded, and committed to supporting workers through their UK immigration journey. In a sector where competition for skills is fierce, that commitment itself becomes a competitive advantage.