Budget announces tax exemption for employer sponsorship payments
30 Oct 2026
If you are on a Skilled Worker visa, or your employer sponsors Skilled Workers, there is a new Budget tax announcement. The government says it will exempt some employer-paid sponsorship costs from Income Tax.
The HMRC overview document says the government "will introduce legislation in Finance Bill 2026-27 to exempt from Income Tax" an employer's payment of "a fee for a certificate of sponsorship or an immigration skills charge." It says employers are required to pay these when sponsoring a worker under the Skilled Worker route.
The document says: "The changes will apply to payments made on or after 28 October 2026." This is an announcement of planned legislation. The Finance Bill has not yet been passed, so the measure is not law yet.
The document does not say you need to take any action. It also does not change the visa fees or the rules for your visa. If you want to know how this affects you or your employer, check the official tax note linked from the document or ask your employer.
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