Salary is one of the most misunderstood aspects of the self-sponsorship visa. Many business owners structure their remuneration as a mix of low salary and dividends for tax efficiency — but for visa purposes, only PAYE salary counts. This guide explains both thresholds, how salary must be paid, and what to do if your business is pre-revenue.
The Two Salary Thresholds
Your sponsored salary must meet both of the following, and you must be paid whichever is higher:
- The general threshold: a flat minimum that applies to all Skilled Worker applications
- The going rate: the occupation-specific rate for your SOC code, derived from ASHE (Annual Survey of Hours and Earnings) data
This two-threshold structure prevents self-sponsoring companies from offering below-market salaries to circumvent visa rules.
The General Threshold
From 22 July 2025, the general threshold is £41,700 per year — up from £38,700 (April 2024) and £26,200 before that. The threshold has risen by approximately 59% since 2023. If you are working from older guidance, recalculate. The threshold applies to the gross salary stated on your Certificate of Sponsorship.
The Going Rate
Every SOC code in Appendix Skilled Occupations has a going rate. For many common occupations, this exceeds £41,700 and becomes the operative threshold:
| Occupation | Typical going rate |
|---|---|
| Software developer | £49,400 |
| Financial manager | £52,000 |
| Management consultant | £44,600 |
| Civil engineer | £43,900 |
| Marketing director | £58,200 |
| Company director (general management) | £55,700 |
Always check the current Appendix Skilled Occupations for your specific SOC code — these figures are updated periodically. The SOC code must reflect your actual duties, not your job title.
New Entrant Rates
You are a new entrant if you are under 26, are within two years of graduating from a degree-level course, or are switching from a Student or Graduate visa. New entrant thresholds from 22 July 2025: £33,360 general threshold, or 70% of the going rate. New entrant status only applies for your first grant of Skilled Worker permission — on extension you must meet the full thresholds.
How the Salary Must Be Paid
The salary on your CoS must be paid through your company's PAYE payroll — regular monthly payments with income tax and National Insurance deducted, payslips issued, and Real Time Information submitted to HMRC. The Home Office checks HMRC payroll data during audits. Gaps in RTI submissions or salary levels below what was stated on the CoS can trigger compliance action.
What Counts as Salary — and What Does Not
Counts: basic PAYE salary; guaranteed non-conditional allowances stated on the CoS (such as guaranteed London weighting).
Does not count: dividends, director's loan repayments, discretionary bonuses, benefits in kind (company car, private health), commission (unless guaranteed), expense reimbursements.
This is critical for self-sponsoring business owners. If your total drawings are £60,000 (£25,000 PAYE + £35,000 dividends), your salary for visa purposes is only £25,000 — well below the £41,700 threshold. You would need to restructure so at least £41,700 comes through PAYE. This has tax implications — discuss with your accountant before applying. For the full picture of how director remuneration interacts with self-sponsorship, see our business owner and director guide.
If Your Business Cannot Yet Sustain the Salary
A pre-revenue business can still self-sponsor, but you must show the salary is funded. It can come from investment raised by the company, a director's personal investment documented as a director's loan or equity injection, or grant and accelerator funding. Your application file should include company bank statements showing the funds are held, a statement explaining the source, and a financial projection showing when the business expects to reach self-sufficiency. The full requirements guide covers what newly formed companies need to demonstrate.
Salary on Extension and ILR Applications
When you extend your Skilled Worker visa, you must still meet the applicable salary threshold at that time. If thresholds have increased — which they have, substantially — you must meet the current rates, not the rate that applied when you first received your visa. This also applies to ILR after five years. If you are considering reducing your PAYE salary at any point during your visa, take immigration advice before doing so. Compliance records are maintained for the full visa duration. For the full ILR pathway, see our ILR and settlement guide.
Frequently Asked Questions
Does the salary threshold change when I extend?
Yes. The threshold that applies is the one in force at the time you make your extension application. Thresholds have increased significantly since 2023. Do not assume the rate on your original CoS is still the minimum.
Can dividends count toward the threshold?
No. Only PAYE salary counts. Dividends, director's loan repayments, benefits in kind, and discretionary bonuses are all excluded from the salary calculation for visa purposes.
What if my going rate is higher than £41,700?
Your CoS salary must meet the going rate for your SOC code, even if it exceeds the general threshold. There is no workaround — the going rate is a hard floor for your occupation.
What happens if I pay myself below the threshold accidentally?
Your company must report salary changes to the Home Office within 10 working days via the Sponsorship Management System. A reduction below the threshold is a reportable change. If undiscovered during a compliance visit, it may result in the licence being downgraded or revoked.
Need personalised advice?
This guide provides general information only. For advice tailored to your circumstances, speak to one of our immigration advisers.
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