The Complete Guide to the UK Sponsor Licence 2026

A Sponsor Licence is the permission granted by the Home Office that allows a UK organisation to employ non-UK residents (and non-Irish citizens) who do not already have the right to work in the UK.

While there are many different visa routes, there are technically only two types of licences you can apply for. Depending on the roles you need to fill, you can hold a licence for one or both:

• Worker Licence: This is for skilled, long-term, or permanent roles. It covers the Skilled Worker route (the most common route for businesses), as well as Global Business Mobility: Senior or Specialist Workers.
   
• Temporary Worker Licence: This is for specific temporary employment or short-term assignments. It covers routes such as Scale-up Workers, Creative Workers, Charity Workers, and other Global Business Mobility routes (like Graduate Trainees or Service Suppliers).

For most businesses in 2026, the Skilled Worker route (under the Worker licence) is the primary pathway, but understanding the correct licence type for your needs is the first step.

Before applying, you must ensure your business meets the core criteria. The Home Office checks for two things: Eligibility (are you a legal entity?) and Suitability (are you trustworthy?).

• Genuine Business: You must have a trading presence in the UK and be operating lawfully.
   
• No Unspent Convictions: Key personnel and directors must not have unspent criminal convictions for immigration offenses or other specific crimes.
   
• HR Systems: You must show you have robust HR systems to monitor sponsored employees. A simple spreadsheet can suffice for small firms, provided it effectively tracks visa expiries, contact details, and attendance.
   
• Genuine Vacancy: The role you intend to sponsor must be a genuine vacancy that meets the skill level (RQF Level 6 / Graduate Level or above) and salary requirements.
  
  Note: Exceptions to the RQF Level 6 requirement apply if the role is on the Temporary Shortage List.

You must nominate people within your organisation to manage the Sponsorship Management System (SMS). These roles can be filled by the same person or different people:

• Authorising Officer (AO): The most senior person responsible for recruitment. They are ultimately accountable for the licence.
   
• Key Contact: The main point of contact for the Home Office.
   
• Level 1 User: The person who manages the day-to-day SMS activities (assigning Certificates of Sponsorship, reporting changes). 
  
  Note: You must always have at least one Level 1 User who is a British citizen or a settled worker (or has specific protected status) and is an employee of your organisation.

To sponsor a Skilled Worker, you must meet the current salary requirements. You generally need to pay the higher of:

• £41,700 per year (General Threshold); or
   
• The going rate for the specific occupation code (Standard Occupational Classification - SOC 2020).

Exceptions: Lower thresholds may apply for "New Entrants" (under 26, students, recent graduates), those with relevant PhDs or individuals who have been on a Skilled Worker visa before April 2024. Always check the specific codes as they are subject to periodic review.

The application is digital, but the preparation is manual and document-heavy.

• Register and Apply Online: Complete the application on the gov.uk website.
   
• Pay the Fee: Fees are determined by your company size (see below).
   
• Submit Supporting Documents: You must email your submission sheet and mandatory documents (e.g., bank statements, VAT registration, employer liability insurance) to the Home Office within 5 working days of payment.
   
• Compliance Check/Audit: The Home Office may conduct a digital or on-site compliance visit to verify your HR systems before granting the licence.

Costs vary based on whether you are a "Small" or "Medium/Large" sponsor. 

You are generally considered a small company if at least 2 of the following apply:

• your annual turnover is £15 million or less;

• your total assets are worth £7.5 million or less;

• you have 50 employees or fewer.

Once licensed, you cannot simply hire someone; you must assign a CoS.

• Defined CoS: For candidates outside the UK. You apply for these on a case-by-case basis. Approval process usually takes from 1 working day to 14 days, and can take longer in certain cases.
   
• Undefined CoS: For candidates inside the UK (e.g., switching from a Student visa) or for GBM routes. You are allocated a batch of these annually and can always apply for additional CoS, if needed.

Compliance is stricter than ever. The Home Office has introduced tougher penalties for non-compliance.

• Revocation: If your licence is revoked due to serious breaches, the "cooling-off" period (the time before you can reapply) has increased in many cases from 12 months to 2 years.
   
• Digital Compliance: With the transition to eVisas, the Home Office has better real-time data. Ensure you report changes (e.g., change in work location, salary, or unauthorised absence) within 10 working days via the SMS.

Obtaining a sponsor licence is the key to unlocking global talent, but the application process requires absolute precision. Ensuring your documentation and HR systems are compliant from day one is critical to avoiding delays or refusals.

Nation.better simplifies this process. Our technology-driven approach and expert legal team can help you:

• Audit your HR systems to ensure they are "Home Office ready."
• Prepare your application and legal cover letter.
• Manage the submission and priority service requests.

Book a Call with Nation.better Today to kickstart your sponsorship journey in 2026.

Disclaimer: Immigration rules are subject to change. Always check the official gov.uk guidance or consult with an immigration expert before submitting an application.