The Home Office has introduced an important update to the Immigration Rules affecting Skilled Worker sponsors. From 9 April 2025, the Immigration Rules were amended to introduce a new provision on permitted deductions from a sponsored worker’s salary. This applies to all Certificates of Sponsorship issued on or after that date.
As a sponsor, it’s crucial to understand and comply with these changes to avoid risking your sponsor licence or jeopardising your workers immigration status.
How Does This Rule Affect Skilled Worker Sponsors?
If you sponsor Skilled Workers, including those extending their stay, you may need to:
- Review existing arrangements for salary deductions, loans and investments.
- Seek legal advice if any aspects of the new rule are unclear.
Failing to apply the rule correctly could lead to compliance issues, affecting both your sponsorship duties and your workers visa status.
Key Details of the New Rule
The rule (SW 14.2A) applies to Skilled Worker applications supported by a CoS assigned on or after 9 April 2025. Here’s what it states:
SW 14.2A. Any money paid by the applicant to the sponsor (or a related organisation) will be considered as follows:
(a) The following payments will be subtracted from salary, unless (c) applies:
- deductions from salary; or
- repayments of loans; or
- investments.
(b) Any such subtractions will be averaged over the length of time the applicant is being sponsored for (i.e., the CoS duration) for salary assessment purposes.
(c) Money will not be deducted if the payment is for an optional benefit (e.g., salary sacrifice schemes) rather than business costs, immigration fees or investments.
Why Has This Rule Been Introduced?
The Home Office has three key objectives:
- Consistency: Aligning the treatment of salary deductions with how allowances are handled.
- Preventing Cost-Shifting: Stopping sponsors from passing immigration or business costs onto workers.
- Closing a Loophole: Preventing situations where workers artificially inflate their salaries by investing in their sponsor’s business.
Next Steps for Skilled Worker Sponsors
✔ Audit current arrangements – Check if salary deductions, loans, or investments could affect workers eligibility.
✔ Adjust salary offers if needed – Ensure net pay after deductions meets the required thresholds.
✔ Seek legal advice – If unsure about how the rule applies to your specific cases.
This change reinforces the need for Skilled Worker Sponsors to carefully structure salary packages and avoid financial arrangements that could undermine compliance. Staying informed and proactive will help maintain your sponsor licence and support your Skilled Workers effectively.
