FAQ on UK Sponsor Licence: 2025 Updates

Navigating the UK Sponsor Licence process can be complex, especially with the latest updates to immigration and sponsorship guidelines. This FAQ guide provides clear, actionable answers to the most common questions employers have about obtaining and managing a Sponsor Licence in the UK.
 

1. What is a UK Sponsor Licence?

A Sponsor Licence is a legal requirement for UK employers who wish to hire skilled workers from outside the UK. It allows businesses to sponsor migrants under various visa routes, such as the Skilled Worker Visa, Global Business Mobility, and Scale-Up Visa. Without a valid Sponsor Licence, you cannot legally employ non-UK residents who require a visa to work in the UK.

2. Who Needs a Sponsor Licence?

Any UK-based employer planning to hire non-UK nationals who require a work visa must obtain a Sponsor Licence. This includes:

• Skilled Worker Visa sponsors
   
• Global Business Mobility sponsors
   
• Scale-Up Visa sponsors
   
• Temporary Worker sponsors
   

Private individuals cannot apply for a Sponsor Licence unless they are sole traders sponsoring someone to work in their business.

3. What Are the Eligibility Requirements for a Sponsor Licence?

To be eligible for a Sponsor Licence, your business must:

• Be a genuine organisation operating lawfully in the UK
   
• Have a lawful trading presence in the UK
   
• Demonstrate the ability to meet sponsor duties and responsibilities

• Not take part in any actions that are conducive to the public good

• Provide supporting documents, such as:

  • Recent business bank statement or a letter from the UK bank detailing your business transactions

  • Proof of employer’s liability insurance coverage up to £5million

  • Proof of ownership or lease agreement for the business premises

  • Certificate of VAT registration

  • Evidence of registration as an employer with HM Revenue and Custom

  • Latest annual accounts

4. What Are the Different Types of Sponsor Licences?

The ‘Worker’ (formerly Tier 2) routes are for skilled, long-term workers. When applying for a Sponsor Licence, you must choose from five specific ‘Worker’ routes:

• Skilled Worker (formerly Tier 2 General) – allows employers to recruit migrants for specific jobs in the UK.
   

• Global Business Mobility – suitable for international businesses. 
   

• Senior or Specialist Worker – for overseas workers undertaking temporary work assignments in the UK, where the worker is a senior manager or specialist employee assigned to a UK business linked to their employer overseas.
   

• Graduate Trainee – for overseas workers on a graduate training programme leading to a senior management or specialist position, who are required to complete a work placement in the UK.
   

• International Sportsperson – for elite sportspersons or qualified sports coaches who are internationally established and can make a significant contribution to the development of their sport at its highest level in the UK.T2 Minister of Religion – for the recruitment of a person who has a key leading role within their faith-based organisation or religious order in the UK.
   

You can apply for multiple licence types using the same application form.

5. How Do I Apply for a Sponsor Licence?

The application process involves the following steps:

1. Check Eligibility: Ensure your business meets the Home Office’s requirements.
    
2. Appoint Key Personnel: Nominate an Authorising Officer, Key Contact, and Level 1 User to manage the licence.
    
3. Prepare Supporting Documents: Gather documents such as bank statements, VAT registration, and proof of business premises, cover letter, etc.
    
4. Submit the Online Application: Complete the application form on the Home Office website and pay the fee (£536 for small companies, £1,476 for medium/large companies).

      A company is considered ‘small’ if it meets two or more of the following criteria for the past year:

• Annual turnover is less than £10.2 million

• Total assets are less than £5.1 million

• Fewer than 50 employees
   

v. Await Decision: The Home Office typically processes applications within 7-8 weeks, but you can opt for the Priority Service for a decision within 10 working days (additional £500 fee).

6. What Are the Key Responsibilities of a Sponsor?

As a licensed sponsor, you must:

• Ensure all sponsored workers meet the eligibility criteria for their visa.
   
• Monitor their attendance and report any changes (e.g., absences, job changes) to the Home Office.
   
• Keep accurate records of sponsored workers’ immigration status and employment details.
   
• Comply with Home Office regulations to avoid penalties, such as licence suspension or revocation.
   

Read more about sponsorship responsibilities and ensuring compliance in our detailed guide. 

7. What Is the Sponsorship Management System (SMS)?

The Sponsorship Management System (SMS) is an online portal where sponsors manage their duties. Key functions include:

• Assigning Certificates of Sponsorship (CoS) to migrant workers.
   
• Reporting changes in workers’ employment status.
   
• Updating company details (e.g., address, key personnel, etc).
   
• Reporting workers' activities 
   
• Staying updated on Home Office rule changes

Only Level 1 Users have full access to the SMS, but they can grant access to Level 2 Users for specific tasks.

8. What Are the Costs of a Sponsor Licence?

The costs include:

• Application Fee: £536 for small companies/charities, £1,476 for medium/large companies.
   
• Priority Service Fee: £500 (optional, for faster processing). 
   

• Immigration Skills Charge: When assigning a Certificate of Sponsorship for a Skilled Worker or Senior or Specialist Worker visa, you may need to cover an extra fee known as the immigration skills charge.
   

  This charge applies if the applicant is:

  • Applying from outside the UK for a role lasting six months or more
  • Applying from within the UK, regardless of the duration

       The fee depends on the size of your organisation and on how long the worker will work for you:
 

9. How Long Does a Sponsor Licence Last?

Starting 6 April 2024, sponsor licence holders will no longer be required to renew their licence.
 

From this date, sponsor licences will remain valid permanently unless the Home Office revokes or places them on hold, or if the licence holder decides to surrender it.

10. What Happens If My Sponsor Licence Is Revoked?

If your licence is revoked, you:

• Cannot sponsor new workers.
   
• Must stop employing existing sponsored workers (unless they switch to another visa).
   
• May face a cooling-off period of 6 months before reapplying.

Common reasons for revocation include:

• Failure to meet sponsor duties.
   
• Providing false or misleading information.
   
• Non-compliance with Home Office regulations.

Learn about maintaining compliance duties in our guide. 

11. How Can Nation.Better Help with My Sponsor Licence?

At Nation.Better, we simplify the Sponsor Licence process with:

• Expert Guidance: From application preparation to compliance support.
   
• Digital Platform: Manage your sponsorship duties effortlessly with our intuitive tools.
   
• Tailored Solutions: Services designed for your specific needs, whether you’re a small business or a large corporation.
   

Book a free call with us to get started. 

12. How Do I Stay Compliant with Sponsor Duties?

To stay compliant:

• Regularly update the SMS with worker details.
   
• Conduct right-to-work checks for all employees.
   
• Report any changes in workers’ employment status within 10 working days.
   
• Keep accurate records of sponsored workers’ immigration documents.
   

Learn more in our guide to maintaining compliance with Home Office regulations. 

14. What Are the Penalties for Non-Compliance?

Non-compliance can result in:

• Licence Suspension or Revocation
   
• Civil Penalties: Fines of up to £60,000 per illegal worker.
   
• Reputational Damage: Your business may be added to the revoked sponsor licence list.

15. Where Can I Get More Help?

Applying for a sponsor licence is not as straightforward as it seems. It is a long and delicate process that needs careful planning to adhere to all the Home Office requirements.
 

By using Nation.better’s sponsor licence service , you can rely on our immigration experts to handle the entire process for you. Our mission is to make the experience stress-free while increasing your chances of obtaining Home Office approval.
 

If you feel that you are in need of assistance, fill in this form – our team will contact you with detailed information on how we can support your business in attracting top international talent.