Employer’s Guide to UK Sponsor Licences

For UK employers looking to hire international talent, obtaining a sponsor licence is essential. This guide covers everything employers need to know about applying for, maintaining, and using a sponsor licence effectively.

What is a Sponsor Licence?

A sponsor licence is a permission granted by the Home Office that allows UK employers to recruit workers from outside the UK. Without a valid licence, you cannot sponsor workers for Skilled Worker, Temporary Worker, or other sponsored visa routes.

Who Needs a Sponsor Licence?

You need a sponsor licence if you want to:

• Hire workers from outside the UK who need a visa
• Sponsor existing employees who are changing visa status
• Bring in workers under Global Business Mobility routes

You don’t need a licence if the worker:

• Already has permission to work in the UK (e.g., Indefinite Leave to Remain)
• Has a Graduate visa
• Has a visa that doesn’t require sponsorship (e.g., spouse visas)

Types of Sponsor Licences

Worker Licence

For sponsoring workers in roles that meet skill and salary requirements:

• Skilled Worker route
• Senior or Specialist Worker route
• Minister of Religion route

Temporary Worker Licence

For sponsoring workers in temporary positions:

• Creative Worker
• Charity Worker
• Religious Worker
• Government Authorised Exchange
• International Agreement
• Seasonal Worker

Many employers hold both licence types to maintain flexibility in recruitment.

Eligibility Requirements

To obtain a sponsor licence, your organisation must:

Be a Genuine Organisation

• Be lawfully operating in the UK
• Have a genuine vacancy to fill
• Not have a history of immigration offences

Have Appropriate Systems

• HR systems capable of tracking sponsored workers
• Record-keeping processes for compliance
• Ability to meet reporting requirements

Pass a Genuineness Test

The Home Office may check that:

• Your business exists and is trading
• The roles you plan to sponsor are genuine
• You can meet compliance obligations

The Application Process

Step 1: Prepare Your Documents

You’ll need to provide evidence of:

• Your business registration (e.g., Companies House registration)
• Your right to operate in the UK
• Your genuine need for overseas workers
• Your HR and compliance systems

Step 2: Choose Your Licence Type

Decide whether you need:

• Worker licence only
• Temporary Worker licence only
• Both licences

Step 3: Submit Online Application

Apply through the Home Office’s Sponsor Management System (SMS). The application form requires:

• Organisation details
• Key personnel information
• Details of roles you plan to sponsor

Step 4: Pay the Application Fee

Organisation Size	Fee
Small or charitable sponsor	£574
Medium or large sponsor	£1,579

Small sponsors are those with annual turnover under £10.2 million AND total assets under £5.1 million AND fewer than 50 employees (must meet at least two criteria).

Step 5: Await Decision (and Possible Compliance Visit)

Processing times are typically:

• Priority service: 10 working days (additional £500)
• Standard service: Up to 8 weeks

The Home Office may conduct a compliance visit before or after approval.

Key Personnel Roles

Every sponsor must assign people to key roles:

Authorising Officer

• Senior and competent person
• Ultimate responsibility for licence compliance
• Must be based in the UK
• Typically a director, partner, or senior manager

Key Contact

• Day-to-day contact with the Home Office
• Receives official correspondence
• Often same as Authorising Officer in small organisations

Level 1 User

• Access to Sponsor Management System
• Can assign Certificates of Sponsorship
• Must be based in the UK

Level 2 Users (Optional)

• Limited SMS access
• Can perform specific tasks as delegated
• Useful for larger HR teams

Compliance Responsibilities

Record-Keeping

You must maintain records for each sponsored worker:

• Contact details and address
• Copy of passport and visa/BRP
• Evidence of right to work
• National Insurance number
• Job details and salary information

Records must be kept for the duration of sponsorship plus 1 year.

Reporting Requirements

You must report to the Home Office within set timeframes:

Event	Reporting Deadline
Worker doesn’t start	Within 10 days
Worker absent for 10+ days without permission	Within 10 days
Worker’s employment ends	Within 10 days
Contact details change	Within 10 days
Significant change to job duties	Within 10 days

Monitoring Attendance

You must:

• Have systems to track sponsored worker attendance
• Report unauthorised absences
• Maintain absence records

Assigning Certificates of Sponsorship

Certificate of Sponsorship (CoS)

A CoS is an electronic record, not a physical document. It contains:

• Worker’s personal details
• Job information and salary
• Sponsor’s licence details
• Unique reference number

Types of CoS

Defined CoS: For workers applying from outside the UK

• Annual allocation from Home Office
• Must be requested if allocation exhausted
• Valid for 3 months

Undefined CoS: For workers already in the UK changing status

• No allocation limits
• Created on demand
• Valid for 3 months

Before Assigning a CoS

Ensure:

• The job meets skill level requirements (RQF 6+)
• Salary meets the threshold (£41,700 or going rate)
• You’ve conducted any required checks
• The role genuinely exists

Compliance Visits

The Home Office may visit your premises to:

• Verify your systems and processes
• Check you’re meeting compliance duties
• Review sponsored worker records
• Assess your ongoing eligibility

Preparing for a Visit

• Ensure all records are up to date
• Brief relevant staff on compliance procedures
• Have evidence readily available
• Know who your sponsored workers are

Consequences of Non-Compliance

Sponsor Licence Downgrade

Your licence may be downgraded from A-rating to B-rating if you breach compliance duties. You’ll have an action plan to address issues.

Licence Suspension

Serious breaches may result in immediate suspension:

• No new CoS can be assigned
• Existing sponsored workers unaffected during investigation
• Could be reinstated or revoked after investigation

Licence Revocation

Your licence may be revoked for:

• Serious or persistent compliance failures
• Immigration offences
• Fraud or deception
• Business no longer operating

Consequences of revocation:

• All sponsored workers have their permission curtailed
• You cannot apply for a new licence for 12 months (or longer)
• Potential civil penalties

Costs Summary

Item	Cost
Application (large)	£1,476
Application (small/charity)	£536
Priority processing	£500
Certificate of Sponsorship	£525 each (Worker routes)
Immigration Skills Charge	£480-£1,320 per sponsored year

Immigration Skills Charge

You must pay for each year of sponsorship (rates from December 2025):

• Small/charitable sponsors: £480 for the first year, £240 per additional 6 months
• Medium/large sponsors: £1,320 for the first year, £660 per additional 6 months

Best Practices for Compliance

1. Designate responsibility - Ensure someone owns compliance processes
2. Regular audits - Check records and systems periodically
3. Train your team - Ensure all relevant staff understand obligations
4. Act quickly - Report changes within required timeframes
5. Stay informed - Immigration rules change frequently
6. Seek advice - Consult immigration specialists for complex situations

Conclusion

Obtaining a sponsor licence opens up access to a global talent pool, but it comes with significant responsibilities. By understanding and meeting your compliance obligations, you can successfully use the sponsorship system to fill skills gaps in your organisation.

Already have a licence? Check your organisation’s listing on our Sponsor Directory to see how candidates find you.