Advisory firm Five Star International used the 27 October news cycle to remind employers and visa applicants that the Immigration Health Surcharge (IHS) hike—passed earlier this year—has already taken effect, doubling annual costs for most adult migrants from £624 to £1,035. While the increase became law in February, many companies have yet to update assignment budgets, risking under-provision as end-of-year relocations gather pace.
HR teams that based 2025 costings on the old rate now face unexpected gaps of over £2,000 on a typical three-year assignment for a worker with one dependent. The advice note stresses that the higher levy is payable at the point of online application and cannot be deferred.
Heath-care surcharge waivers continue for Health and Care visa holders, but other popular categories such as Global Business Mobility and Innovator Founder are fully liable.
Five Star urges employers to audit upcoming extension and dependent applications, adjust relocation allowances and consider salary-advance options where employees are expected to self-fund.
Although the Home Office has hinted at moving to quarterly surcharge payments in future, no timeline has been confirmed, leaving upfront payment as the only option for now.
HR teams that based 2025 costings on the old rate now face unexpected gaps of over £2,000 on a typical three-year assignment for a worker with one dependent. The advice note stresses that the higher levy is payable at the point of online application and cannot be deferred.
Heath-care surcharge waivers continue for Health and Care visa holders, but other popular categories such as Global Business Mobility and Innovator Founder are fully liable.
Five Star urges employers to audit upcoming extension and dependent applications, adjust relocation allowances and consider salary-advance options where employees are expected to self-fund.
Although the Home Office has hinted at moving to quarterly surcharge payments in future, no timeline has been confirmed, leaving upfront payment as the only option for now.
