Key Changes to Company Size Thresholds (Effective April 6, 2025)

Under the Companies Act 2006, the financial thresholds defining small and medium-sized companies have been increased:

• Turnover: Increased from £10.2 million to £15 million

• Balance sheet total: Increased from £5.1 million to £7.5 million

This change impacts businesses that hold a Home Office sponsor licence, particularly affecting:

• Sponsor licence application fees

• Immigration Skills Charge (ISC) amounts

Impact on Sponsorship Fees

The company’s size classification determines the fees payable for sponsoring workers.

• Sponsor licence application fees (effective 9 April 2025):

  • Large sponsors: £1,579

  • Small sponsors: £574

• ISC fees per sponsored worker:

  • Large sponsors: £1,000 for the first 12 months + £500 per additional 6 months

  • Small sponsors: £364 for the first 12 months + £182 per additional 6 months

👉 Sponsors classified as small businesses benefit from reduced licence and ISC fees.

Reporting Obligations and Compliance

If your company’s size classification changes, you must:

• Report the change to UKVI within 20 working days.

• Provide evidence (such as company accounts and organisation charts) to support the report.

• Failure to report can result in penalties, including licence revocation.

⚠️ Note: It is better to make a late report than not to report at all.

Projected Impact of the New Thresholds

It is estimated that:

• 113,000 entities will move from small to micro-entity status.

• 14,000 will move from medium to small.

• 6,000 will move from large to medium.