Applying for a Sponsor Licence
Sponsor licence applications are made online via the Sponsorship Management System (SMS). The Home Office assesses whether the organisation is genuine, operating and trading lawfully, and has robust HR systems in place. Key requirements:
Ongoing Sponsor Duties — Staying Compliant
Suspension & Revocation
The Home Office can downgrade a licence from A-rating to B-rating (restricting the ability to assign new CoS), suspend the licence, or revoke it entirely. Common reasons include:
- Failure to maintain adequate HR records
- Failure to report a sponsored worker's change in circumstances
- Sponsoring workers in roles that do not meet the genuine vacancy test
- Evidence of exploitation or paying below the stated salary
- Criminal convictions of key personnel
On revocation, sponsored workers' visas may be curtailed. The employer faces civil penalties for illegal working if it continues to employ workers without valid leave. A solicitor makes urgent representations to avoid revocation and advises workers on their options if their leave is curtailed.
Frequently Asked Questions
How long does a sponsor licence application take?
Standard processing takes up to 8 weeks. A priority processing service is available for a faster turnaround — currently 10 working days for an additional fee of £500. A solicitor submits the application correctly the first time, avoiding delays from requests for further information. The licence is valid indefinitely but must be maintained through compliance and renewed when key personnel change.
Can a new business apply for a sponsor licence?
Yes. A new business can apply for a sponsor licence, but must demonstrate it is genuinely trading. Evidence includes a signed contract with a client, invoices issued, a business bank account, and a physical trading address. Without audited accounts, a new business relies more heavily on other evidence of genuine trading. A solicitor advises on the strongest documentation package for a new business application.
What is the Immigration Skills Charge?
The Immigration Skills Charge is a levy paid by sponsors at the time a Certificate of Sponsorship is assigned. It funds skills training for UK workers. The rate is £239 per year for small employers (fewer than 50 employees or charities) or £1,000 per year for medium and large employers. The full charge is paid upfront based on the length of the visa. It is not refundable if the worker does not take up the role.
Can I hire an EU worker without a sponsor licence?
EU nationals who arrived in the UK before 31 December 2020 and have settled or pre-settled status have the right to work without sponsorship. New EU arrivals after 31 December 2020 require a Skilled Worker visa just like other non-UK nationals — and the employer must hold a sponsor licence to sponsor them. Checking right to work before employment starts is a legal obligation for all employers.
What are the civil penalties for illegal working?
An employer who employs a person without valid leave to work can be fined up to £60,000 per illegal worker as of 2024 (up from £20,000). If a correct right-to-work check was carried out before employment started, the employer has a statutory excuse and is not liable for the civil penalty. A solicitor advises on carrying out compliant right-to-work checks and conducting retrospective checks if needed.