When a visa or sponsorship situation changes, you may be eligible for a partial refund from the Home Office. The rules differ depending on whether the refund relates to the Immigration Skills Charge (ISC) or the Immigration Health Surcharge (IHS).
Refunds are usually processed automatically, but they can take time.
💼 Immigration Skills Charge (ISC) Refunds
✅ When You May Be Eligible
ISC refunds usually apply when a sponsorship is ended early, not when switching visas. You may be eligible if:
💰 You (the employer) paid the ISC for a Skilled Worker sponsorship
🛑 The sponsorship was cancelled, withdrawn, or ended early (e.g. worker leaves employment)
📅 There is an unused period remaining on the Certificate of Sponsorship
🔄 To initiate the refund, ensure the worker’s Certificate of Sponsorship (CoS) is properly terminated in the Sponsor Management System (SMS). Take a screenshot of the termination confirmation as supporting documentation.
Example:
If a worker was sponsored for 5 years but their sponsorship ends after 2 years, the employer may be refunded the remaining 3 years of ISC.
⚠️ Note:
Refunds are pro-rated
The refund is issued only to the organisation that paid the ISC
🏥 Immigration Health Surcharge (IHS) Refunds
✅ When You May Be Eligible
IHS refunds usually apply when a person switches visas and there is overlapping health coverage. You may be eligible if:
💰 You paid the IHS for a previous visa
🔄 You later switched to another UK visa that also required IHS
📅 There is an overlap in IHS coverage between the two visas
Example:
Student Visa → Skilled Worker Visa
If the Skilled Worker visa starts before the Student visa expires, UKVI may refund the unused IHS period from the original visa.
⚠️ Important:
Refunds apply only to the overlapping period, not the full amount
The refund is paid back to the original payment method
🔍 Checks Before Contacting UKVI (Applies to Both ISC & IHS)
Before raising an enquiry, confirm all of the following:
1️⃣ Visa Has Been Granted
UKVI will not process refunds while a new visa application is pending
The applicant’s immigration record must show the new visa
2️⃣ Enough Time Has Passed
The Home Office makes refund decisions within 90 days of the relevant event
See How long a refund decision takes below for which event starts the clock
UKVI will not respond to refund queries made too early
3️⃣ Refund Hasn’t Already Been Paid
Refunds go to the original payment method
If the employer paid → refund goes to the employer
If the individual paid → refund goes to the individual
📞 When & How to Contact UKVI
If all checks above are complete and no refund has been received:
➡️ Submit a request via the UKVI refund contact form. Alternatively, send an email to the designated ISC administration address at the Home Office. Attach supporting documents, including a screenshot of the CoS termination and other relevant details.
Provide:
Full name & date of birth
Home Office reference numbers (for relevant applications)
IHS or ISC payment reference
Date the visa was granted or sponsorship ended
Confirmation that 90 days have passed since the relevant event
Sponsor licence number (SLN)
Time remaining on the Certificate of Sponsorship (CoS)
⚠️ Important: Only the person or organisation that paid the fee can request a refund.
🚫 When No Refund Will Be Issued
ISC
Sponsorship ran for the full duration
The refund has already been processed
IHS
No visa overlap
The original visa was fully used
The overlap is less than 6 months (in some cases)
The application was withdrawn or the applicant left the UK
The refund has already been issued
💷 CoS fees and recovering costs from workers
The CoS assignment fee is not refundable, including where the worker later resigns or is dismissed. Only the ISC is partially refundable in the circumstances described above.
You must never recover the Immigration Skills Charge from a sponsored worker. In addition, for any CoS assigned on or after 31 December 2024, you must not recoup the CoS fee or its associated administrative costs from the worker. If you do, the Home Office will normally revoke your sponsor licence, which ends the sponsorship of all your sponsored workers.
Government guidance: https://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors-part-3-sponsor-duties-and-compliance
When you get a full ISC refund
The Home Office refunds the ISC in full, not pro rata, in any of the following situations:
The worker's application for entry clearance or permission is refused.
The worker withdraws their application before a decision is made on it.
The application is granted but the worker does not travel to the UK or does not start work for you.
The CoS expires before it is used in a valid application.
You withdraw the worker's CoS before it is used in any application.
The CoS assignment fee is not refundable in any of these situations. The government visa application fee is also not refundable once the identity check has been completed and the application submitted through UKVI.
The first 12 months are never refunded on a partial refund
Where a partial refund applies, because the worker was granted a shorter period than the CoS stated, moved to another sponsor, or left the post early, the Home Office always retains the first 12 months of the ISC you paid. Only subsequent unused 6 month periods are refunded.
This matters most when a worker leaves within their first year. If you assigned a 3 year CoS and the worker leaves after 6 months, the first 12 months are retained and you are refunded the final 2 years. There is no refund of the part year they did not work.
How long a refund decision takes
The Home Office makes refund decisions within 90 days of the relevant event. Which event starts the clock depends on the circumstances, for example the date you reported through the SMS that the worker did not start work or left early, the CoS expiry date where no application was made, or the deadline for an administrative review application where a visa was refused.
Do not chase before the 90 days are up. If a refund has not been paid within 90 days of the relevant date, contact UKVI, or tell your Borderless contact and we will raise it.
Other situations where no ISC refund is due
There is also no ISC refund where the worker changes job but stays with the same sponsor, where they switch to another immigration route but remain in the same job, where they move to another sponsor under TUPE or similar protection, or where your licence is made dormant or revoked.
Government guidance: Workers and Temporary Workers: guidance for sponsors part 2, sponsor a worker