If you work in HR, People Operations, or you're building HR tech tools that handle UK visa sponsorship workflows, understanding the Immigration Health Surcharge (IHS) is non-negotiable. Here's what you need to know.
The Problem HR Gets Wrong About the IHS
Most HR teams understand that sponsored workers need to pay the IHS. What they often get wrong:
- They don't factor it into relocation cost estimates — leaving employees surprised by a bill of £3,000–£12,000+ before they even land in the UK
- They forget dependants pay too — every person on the visa application (spouse, children) must pay separately
- They conflate the visa fee with the IHS — these are two separate payments
Current IHS Rates (2026)
| Applicant Type | Annual Rate |
|---|---|
| Standard adult (most visa categories) | £1,035/year |
| Student visa holders | £776/year |
| Children under 18 | £776/year |
The charge is calculated on the total visa duration, rounded up to the nearest year for any partial year. A 30-month visa = 3 years of IHS.
IHS in the Visa Application Workflow
For HR teams managing sponsorship, here's where the IHS fits in:
- CoS assigned — Company assigns Certificate of Sponsorship to the worker
- Worker starts visa application — on the UKVI online portal
- IHS payment — paid during the online application (before visa decision)
- Visa fee payment — paid separately
- Biometric Appointment — worker attends a UKVI service point
- Decision — typically 3–8 weeks for standard applications
Building IHS Into Your Relocation Calculator
If you're building HR tools, here's the key logic:
visa_duration_months → ceil(months/12) = years
standard_rate = 1035, student_rate = 776
ihs_per_applicant = years × rate
total_ihs = sum across all applicants (main + dependants)
Simple logic — but many HR platforms still don't include this, leaving finance teams doing spreadsheet maths manually.
Employer Reimbursement: Policy Considerations
Employers can legally reimburse the IHS as part of a relocation package. Key points:
- Tax treatment: Employer-paid IHS is treated as a benefit in kind and may attract tax/NI — seek payroll advice
- Cash flow: Workers pay upfront — consider advancing funds rather than reimbursing post-payment
- Policy consistency: Apply the policy consistently to all sponsored hires to avoid discrimination issues
IHS Exemptions Relevant to Employers
- Australian and New Zealand nationals — covered by reciprocal healthcare agreements
- Workers on visas of 6 months or less — not applicable to Skilled Worker
- Certain government and diplomatic staff
Always verify exemption status before excluding anyone — a worker who incorrectly skips the IHS will have their application rejected.
Tools and Resources
For HR teams and developers building immigration tools, ImmigrationGPT is a free AI-powered resource that can help answer common UK immigration questions quickly — reducing the volume of ad-hoc queries your HR team fields from employees going through the visa process.
Summary Checklist for HR Teams
- [ ] Calculate IHS for main applicant AND all dependants
- [ ] Round up partial years (25 months = 3 years of IHS)
- [ ] Check for applicable exemptions (Australian/NZ nationals)
- [ ] Decide employer reimbursement policy and get payroll advice
- [ ] Communicate IHS costs to employees early in the process
This article contains general information only. For advice specific to your situation, consult a qualified immigration lawyer.
Top comments (0)