Sponsor Licence
A sponsor licence is formal Home Office approval that allows a UK employer to hire overseas nationals on sponsored work visa routes — including the Skilled Worker, Global Business Mobility, and Health and Care Worker routes.
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.
Licences are route-specific. A Worker licence covers routes like Skilled Worker and Global Business Mobility. A Temporary Worker licence covers Seasonal Worker and Creative Worker. The licence lasts indefinitely as long as the employer meets its compliance duties, but the Home Office can suspend or revoke it at any time. Once granted, the employer appears on the public Register of Licensed Sponsors.
How to Apply for a Sponsor Licence
The application has five steps. First, confirm eligibility: the business must be a genuine UK-operating organisation with no immigration penalties and appropriate HR systems. Next, appoint three roles: Authorising Officer (the senior person accountable), Key Contact (main UKVI liaison), and Level 1 User (day-to-day SMS admin). One person can fill multiple roles.
Then submit the online application via the Home Office's Sponsorship Management System (SMS) with supporting documents (proof of trading, HMRC registration, etc.) and pay the licence fee. The Home Office may conduct a pre-licence visit to verify the business is genuine and HR systems are adequate.
Standard processing takes 8 weeks. Priority processing (10 working days) costs an additional £500.
Costs and Processing Times
| Organisation type | Worker licence fee |
|---|---|
| Small or charitable sponsor | £536 |
| Medium or large sponsor | £1,476 |
| Priority processing (add-on) | £500 |
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 licence gets a grade. Grade A means full compliance: the employer can assign CoS freely within its annual allocation. Grade B means the Home Office has identified concerns. The employer goes on an action plan with limited or suspended CoS-assigning ability until it improves. Grade B is often the last step before revocation.
New sponsors typically receive a provisional Grade A with monitoring conditions. Established sponsors that breach their duties can be downgraded.
Ongoing Compliance Duties
Holding a sponsor licence is not a one-off exercise. The obligations are ongoing and the Home Office takes them seriously.
Sponsors must maintain up-to-date contact details, job descriptions, and payroll records for every sponsored worker. Any changes (absences without explanation, salary adjustments, role changes, resignations) must be reported via the SMS within 10 working days. Right to work checks are required for all employees, not just sponsored ones. Home Office compliance officers can inspect premises and records at any time (see Sponsor Compliance Visit). And since 31 December 2024, sponsors are prohibited from passing any part of the 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, up from RQF 3. That is a big jump. Sponsors should audit their existing workforce to confirm that current roles still qualify at renewal.
The Home Office has also stepped up enforcement since 2024, with more frequent compliance visits and desk-based audits.
Common Mistakes to Avoid
- Appointing inexperienced Level 1 Users. The SMS is complex. Untrained users make reporting errors that trigger compliance investigations.
- Missing the 10-day reporting window. Late reports count as failures, even when the underlying event was minor.
- Sponsoring roles below the skill threshold. After July 2025, many roles that qualified at RQF 3 no longer qualify at RQF 6.
- Passing costs to workers. Since December 2024, this is a revocable offence. Make sure contracts contain no fee-recovery clauses.
- Letting the Authorising Officer leave without naming a replacement. The licence becomes ungoverned and risks suspension.
Frequently Asked Questions
How long does a sponsor licence last?
There is no fixed expiry. A licence stays valid as long as the sponsor keeps up with compliance. That said, the Home Office can revoke it at any time if it finds breaches.
Can a startup apply for a sponsor licence?
Yes, though the bar is higher. The Home Office wants evidence of genuine trading: bank statements, HMRC registration, existing clients or contracts. Pre-revenue companies are frequently refused.
Is the Register of Licensed Sponsors public?
It is. The Home Office publishes the full register monthly as a downloadable spreadsheet on GOV.UK.
Can the licence fee be refunded if the application is refused?
No. The fee is non-refundable regardless of the outcome.
Related Terms
- Certificate of Sponsorship
- Sponsor Compliance Visit
- Sponsor Licence Suspension & Revocation
- Immigration Skills Charge
Look up any UK employer on the Register of Licensed Sponsors →