Speaker 1: 0:32

Hey, lovely people, and welcome back to Buzzing About HR, the podcast that helps you untangle all the weird and wonderful bits of employing people, minus the boring HR waffle. I'm Kate Underwood, your HR sidekick, and today I'm tackling a question that's been coming up a lot lately. And today I'm tackling a question that's been coming up a lot lately. We found this amazing candidate, kate, but they're not in the UK. Can we actually hire them? More and more small businesses are struggling to find the right people locally, whether it's care workers, digital marketers, engineers or something super niche. So they start looking further afield, find someone brilliant and then get hit with the realisation oh no, are we allowed to do this? What's a sponsor licence? Oh my god, how much is this going to cost? If that's you, you're absolutely not alone, and I promise I'll break it down without the legal jargon Just plain English, real life advice, maybe a few laughs along the way. So grab a brew, maybe a biscuit, and let's get buzzing why this matters more than ever. Right, let's talk about why this comes up so much now.

Speaker 1: 1:58

Before Brexit, uk employers could hire anyone from the EU without visas or sponsorship. No forms, no fuss. We had the freedom of movement. Remember that. But now, if your dream candidate is in Spain or Portugal or France, you need a visa, a sponsor license. The works. Eu citizens are now treated the same as someone from India or Canada when it comes to immigration. And now it's not just you who's struggling. Since the rules changed, the number of companies applying for sponsorship licenses have tripled. So if you're sitting there thinking, oh crikey, this feels a bit much, don't worry, you're in good company. Do you even need a sponsor license? Okay, so let's start with the basics. If your candidate is British or Irish, you're good. If they've got settled or pre-settled status from the EU settlement scheme, also fine. Or if they've already got a visa that lets them work, like a graduate visa, or they're someone that's dependent, again you're sorted. But if they don't tick any of those boxes and they're not in the UK or from the UK, you'll probably need to sponsor them under the skilled worker visa route, getting a sponsor licence step by step. This is the bit that tends to cause mild panic, but it's not as scary as it sounds, I promise.

Speaker 1: 3:41

The sponsor licence is basically your permission from the Home Office to employ someone who needs a visa, and yes, there's a bit of paperwork, but it's totally doable. First you need to be a legit UK business with no dodgy criminal convictions. You also need to be able to track and monitor the people you sponsor. So you need some kind of HR setup, even if it's basic PS. Breathe HR will do this for you 100%. Then you apply. Most small businesses will go for a skilled worker license. You need to assign someone to be the authorizing officer, ideally somebody who reads emails and won't freak out when a letter from the home office lands on their desk. So basically, dave who hasn't logged into Breathe HR since October last year is not going to be the right person. October last year is not going to be the right person.

Speaker 1: 4:37

You'll also need to upload some documents, things like bank statements, proof of premises, vat registration. It's a bit admin heavy, but nothing you can't handle with a good checklist. The cost it's £536 if you're a small business or charity, or £1,579 if you're classed as a medium or large business. Now it's meant to take about eight weeks to process, but at the moment it's more like 10 or even 12. We've had clients get stuck in the system, get asked for the same documents twice. It's not you, it's definitely them. So patience and maybe a bit of polite chasing. Is your friend here Issuing the certificate of sponsorship, or COS?

Speaker 1: 5:33

Once you've got your sponsor license, yay congratulations, you can issue a certificate of sponsorship. And no, it's not an actual piece of paper, it's a digital record with the job details and candidate information. You'll need to put in the job title, salary hours and job duties, but, most importantly, the SOC code, that's the job classification that has to match at home office approved list. Make sure the job meets the right skill level and salary threshold. You can't sponsor someone for junior admin role, for example. It needs to be a skilled person.

Speaker 1: 6:17

The candidates turn applying for the visa. Now it's your candidates time to shine, or stress, depending on how you look at it. They'll apply online using the cos number you've given them and they'll need to provide a few things Proof of English, proof of savings unless you're covering that a TB test if they're from certain countries, and maybe a criminal records check, depending on the job. The costs the fees range from £769 to £1,519, plus the immigration health surcharge, that's £1,035 per year. Thank you very much and let's just say it, this is a lot of money, especially for a small business. Now you're not allowed to ask them to pay for the sponsor licence. That's on you. But you can pay the visa fees and ask them to repay you on a sliding scale if they leave, like a training agreement, totally fair. Just to be clear and upfront about it, put it in writing. Also, a quick heads up Some of the questions on the visa application are wild.

Speaker 1: 7:36

Like have you ever committed a war crime? Like you're going to be applying for a visa? If you did, do you hold any extreme political views? It's not exactly comforting, is it? That's why I often offer screen share sessions to help candidates through the process, especially if English isn't their first language or they're feeling a bit overwhelmed. It just helps avoid panic clicking or answering things incorrectly. And one last thing we've had clients and candidates do get weird emails from their own office saying things like your job code isn't valid or you need to pay more. Always, always, double check. In one case the job code was fine and no extra payment was needed. So don't just click and pay. Take a breath and check first.

Speaker 1: 8:29

Don't forget the onboarding and relocation bit. Once they're in the UK, don't forget the basics. This is where some businesses drop the ball. Have you helped them find somewhere to live? Do they know how to get to work? Do they need help setting up a bank account? One client brought someone over for a care role and didn't realise that their new hire had spent £50 a day on taxes because there was no public transport. Small thing, big impact. So be kind, be practical and think beyond the visa, sponsor duties and ongoing responsibility.

Speaker 1: 9:15

Once your person is in post, you've still got responsibilities. You've got to keep records, report changes like salary, job title or absences, monitor their right to work and, on occasion, you might need to renew your license. This is where having something like Breathe HR can really help Just to stay on top of the admin. Tick those compliance boxes without losing your marbles. April 2025 updates. You need to know Right. Quick update alert.

Speaker 1: 9:54

The Home Office made some important changes on the 9th of April 2025. That's today and here's what you need to know. You're not allowed to charge employees for any sponsorship fees. That includes license fees, legal costs related to the license, nada. You can cover visa costs and reclaim them fairly, but sponsorship costs are 100% your responsibility. If you're sponsoring care workers or senior care workers, you now have to cooperate with your local health authority or regional care partnership as part of the process, minimum salary thresholds have gone up for both skilled workers and seasonal workers, so make sure you're paying enough. There are also new rules about what kind of salary deductions are allowed, so don't get too creative with payback clauses. Make sure it's all above board.

Speaker 1: 10:55

And if you're in the creative industries, you can no longer sponsor someone for a permanent creative role. Artists, performers, can only be sponsored for temporary positions. Oh, and if you're using the graduate or charity worker routes, there have been classification there too. Graduate workers must be in roles that are genuinely additional they can't be replacing someone else and charity workers there are clear rules now on what they can and can't be paid. If you're unsure on any of this, the updated guidance is live on govuk. I'll pop the link in the show notes. Final thoughts so hiring from abroad is a bit of a journey, but it's completely doable. Take it one step at a time, know what the rules are, plan your costs, support your candidate through it and lean on someone like me if you get stuck. Oh, and there are visa routes that don't require sponsorship, depending on the situation. I'll be talking about those in future episodes, so keep your eyes and ears open if it's something you'd like to explore. Until then, stay compliant, stay caffeinated and keep buzzing.