Sponsor Licence

In This Article

• What is a sponsor licence?
• How to apply for a sponsor licence
• Costs and processing times
• Licence grades: A and B
• Ongoing compliance duties
• 2025/2026 updates
• Common mistakes to avoid
• Frequently asked questions
• Related terms

What is a Sponsor Licence?

Before a UK employer can offer a job to someone who needs a visa — and issue them a Certificate of Sponsorship — it must hold a valid sponsor licence from the Home Office. The licence is route-specific: a Worker licence covers routes like Skilled Worker and Global Business Mobility, while a Temporary Worker licence covers routes like Seasonal Worker and Creative Worker.

The licence is held indefinitely (as long as compliance is maintained) but can be suspended or revoked if the employer fails its duties. Once granted, the employer appears on the public Register of Licensed Sponsors — the same list that powers this site.

How to Apply for a Sponsor Licence

The application process involves:

1. Check eligibility — The business must be a genuine UK-operating organisation, not subject to any immigration penalties, and have appropriate HR systems in place.
2. Appoint key roles — Three roles must be filled: Authorising Officer (senior person accountable for licence), Key Contact (main liaison with UKVI), and Level 1 User (day-to-day SMS admin). One person can hold multiple roles.
3. Submit the online application — Via the Home Office's Sponsorship Management System (SMS), including supporting documents (proof of trading, HMRC registration, etc.).
4. Pay the licence fee — Fees vary by organisation type (see below).
5. Pass a pre-licence visit (if required) — The Home Office may visit before granting the licence to verify the business is genuine and HR systems are adequate.

The standard processing time is 8 weeks, though priority processing (within 10 working days) is available for an additional fee of £500.

Costs and Processing Times

What counts as "small"? Defined by the Companies Act 2006: annual turnover ≤ £10.2m, balance sheet ≤ £5.1m, and/or ≤ 50 employees (meeting at least two criteria). Charities always pay the small fee regardless of size.

Note: these are the licence application fees only. Once sponsoring workers, employers also pay the Immigration Skills Charge per worker sponsored.

Licence Grades: A and B

Every sponsor licence is assigned a grade:

• Grade A — Full compliance. The employer can assign CoS freely within its annual allocation.
• Grade B — Concerns identified. The employer is placed on an action plan and has limited or suspended CoS-assigning ability until it demonstrates improvement. Grade B is a precursor to possible revocation.

New sponsors are often initially granted a provisional Grade A with monitoring conditions. Established sponsors that breach duties may be downgraded from A to B.

Ongoing Compliance Duties

Holding a sponsor licence is not a one-off exercise. Sponsors have continuing obligations:

• Record keeping — Maintain up-to-date contact details, job descriptions, and payroll records for every sponsored worker.
• Reporting duties — Report changes within 10 working days via the SMS: worker absences without explanation, salary changes, role changes, and worker resignations.
• Right to work checks — Conduct and document compliant right to work checks for all employees (not just sponsored workers).
• Cooperate with audits — Allow Home Office compliance officers to inspect premises and records at any time; see Sponsor Compliance Visit.
• Do not recoup fees — Since 31 December 2024, sponsors are prohibited from passing any part of the sponsor licence fee or Immigration Skills Charge on to workers.

2025/2026 Updates

From July 2025, roles must meet RQF Level 6 (graduate equivalent) to qualify for Skilled Worker sponsorship — a significant tightening from the previous RQF Level 3. Sponsors should audit their sponsored workforce to ensure existing roles still qualify at renewal.

The Home Office is also increasing the frequency of compliance visits and conducting more desk-based audits since 2024.

Common Mistakes to Avoid

• Appointing inexperienced Level 1 Users. The SMS is complex; untrained users make reporting errors that trigger compliance investigations.
• Missing 10-day reporting windows. Late reports are treated as failures — even if the underlying event was minor.
• Sponsoring roles that don't meet the skill threshold. Post-July 2025, many roles that previously qualified at RQF 3 are no longer eligible.
• Passing costs to workers. Since December 2024 this is a revocable offence — ensure contracts make no reference to fee recovery.
• Letting the authorising officer leave without replacing them. The licence becomes ungoverned and risks suspension.

Frequently Asked Questions

How long does a sponsor licence last?

Sponsor licences do not expire on a fixed date. They remain valid indefinitely, provided the sponsor continues to meet its compliance obligations. The Home Office can revoke a licence at any time for breaches.

Can a startup apply for a sponsor licence?

Yes, but it is harder. The Home Office looks for evidence of genuine trading activity — bank statements, HMRC registration, existing clients or contracts. Pre-revenue or pre-trading companies are frequently refused.

Is the Register of Licensed Sponsors public?

Yes. The full register is published monthly by the Home Office as a downloadable spreadsheet. Hunt UK Visa Sponsors syncs from this register daily, so every company listed on this site holds an active licence.

Can the licence fee be refunded if the application is refused?

No. Application fees are non-refundable, even if the licence is refused or the application is withdrawn.

Related Terms

• Certificate of Sponsorship
• Sponsor Compliance Visit
• Sponsor Licence Suspension & Revocation
• Immigration Skills Charge

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