Sponsor licence Application
Employers in the United Kingdom must hold a Sponsor Licence before recruiting skilled workers from abroad. The licence authorises an organisation to issue Certificates of Sponsorship (CoS), which overseas nationals need to apply for a work visa. Without it, a business cannot legally employ most foreign nationals, regardless of their qualifications.
At Immigration Solicitors UK, we assist employers throughout the entire process, from preparing compliant HR systems and drafting Appendix A documentation to managing post-licence reporting duties. To speak directly with a solicitor, call +44 7561 699 666 or contact us online.
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What is a Sponsor licence?
A Sponsor Licence is formal permission granted by the Home Office to a UK-based organisation, allowing it to employ non-UK citizens under specific immigration routes such as the Skilled Worker or Temporary Worker visas. It confirms that the organisation is capable of fulfilling its sponsorship duties and complying with all Home Office monitoring and record-keeping requirements.
Since April 2024, licences have no longer required renewal every four years. Instead, they remain valid indefinitely as long as the sponsoring organisation maintains its compliance and retains an A-rating.
Who Needs a Sponsor Licence?
Any UK business that intends to hire a worker without settled or pre-settled status or other immigration permission must first obtain a sponsor licence. This requirement applies to companies of all sizes and across all sectors, from multinational corporations and SMEs to start-ups, universities, and charitable organisations.
Industries particularly dependent on sponsor licensing include technology, healthcare, engineering, finance, hospitality, and higher education, where international talent remains crucial to meeting demand.
Business Eligibility and Key Personnel
To qualify for a sponsor licence, an organisation must be legally established and trading in the UK, have a verifiable business address, and offer genuine employment that meets the required skill and salary thresholds. It must also demonstrate that it has the internal systems to monitor staff and report changes promptly.
Each licence holder must appoint several key personnel:
- Authorising Officer – a senior executive ultimately responsible for the licence and its compliance
- Key Contact – the main communication link between the organisation and the Home Office
- Level 1 and Level 2 Users – individuals who operate the Sponsorship Management System (SMS) and handle day-to-day tasks such as assigning CoS and reporting changes
All key personnel must be reliable, UK-based, and free from unspent criminal convictions. The Home Office will assess the organisation’s HR infrastructure and may conduct a compliance visit before or after granting the licence.
Most applications require at least four supporting documents as listed in Appendix A of the Immigration Rules. Typical evidence includes recent financial accounts, VAT registration, proof of a UK business bank account regulated by the FCA and PRA, employer’s liability insurance of at least £5 million, and HMRC registration documents.
Additional documents may be requested depending on the sector or company structure, for example, a charity registration certificate or professional accreditation where relevant.
Updated Fees and Financial Requirements
The Immigration Skills Charge (ISC) and several related fees increased significantly on 16 December 2025. These must now be budgeted carefully at the outset.
| Category | Small / Charitable Sponsor | Medium / Large Sponsor |
|---|---|---|
| Licence Application Fee | £574 | £1,579 |
| Skilled Worker CoS | £525 | £525 |
| Temporary Worker CoS | £25 | £25 |
| Annual ISC | £480 | £1,320 |
| Total ISC for 5 Years | £2,400 | £6,600 |
| Priority Processing (10 Days) | £500 | £500 |
| SMS Priority Request (1 Day) | £350 | £350 |
| Salary Threshold | £41,700 | £41,700 |
| Skill Level | RQF 6 (Degree) | RQF 6 (Degree) |
The skill requirement for most roles is now RQF Level 6, replacing the previous RQF 3 standard. Roles below that level can only be sponsored if they appear on the Temporary Shortage List (TSL). Employers must also ensure that salaries meet or exceed £41,700 per year unless a “new entrant” exemption applies.
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The Border Security, Asylum and Immigration Act 2025 made it a criminal offence to recover any sponsorship or visa-related costs from an employee. This includes legal fees, the ISC, CoS fees, SMS management costs, or priority-service payments.
Salary-sacrifice schemes that reduce a worker’s take-home pay below the £41,700 threshold are also prohibited.
To help clients comply, our firm issues a Cost-Compliance Certificate, confirming that all sponsorship costs are borne lawfully by the employer. This certificate is increasingly requested during Home Office compliance inspections.
Application Process and Timeframes
The application is made online, followed by electronic submission of the required supporting evidence. Most applications are decided within six to eight weeks. A Priority Service is available for £500, providing a decision within ten working days, while the SMS Priority Request costing £350 allows one-day processing for CoS allocations or licence updates.
Under the 2025 Act, certain applications may be placed in the 24-week target-led queue if the Home Office considers them to require enhanced verification, often where financial or HR documentation is incomplete.
To avoid this, our firm provides a Solicitor’s Verification Statement, confirming that pre-licence checks have been conducted and all compliance measures are in place. The Home Office routinely prioritises these low-risk, lawyer-verified applications.
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A key challenge for corporate sponsors is satisfying the Home Office that each role is genuine and necessary for the organisation’s business model.
We help employers meet this test by:
- Drafting detailed role justifications aligned with business objectives
- Preparing market benchmarking evidence to demonstrate salary and skill appropriateness
- Linking job descriptions to the company’s operational structure and growth plan
This strategic approach significantly reduces the risk of refusal under the Genuineness Test.
Sector-Specific Considerations
Immigration requirements can vary considerably between industries. We tailor our advice to the specific needs of each sector:
- Technology – support with hybrid routes such as Global Talent and Scale-up visas
- Healthcare – compliance with NHS sponsorship standards and professional registration
- Financial Services – salary benchmarking, regulated role checks, and FCA alignment
This industry-specific understanding positions our clients for faster, more reliable approvals.
English Language “Compliance Cliff” – January 2026
The Home Office has confirmed that, from 8 January 2026, the minimum English-language level for Skilled Worker visa applicants will rise from B1 to B2.
This change does not affect existing visa holders applying for extensions or switches within the UK. However, employers planning to recruit workers who currently hold only a B1 qualification must ensure that the CoS is assigned and the visa application submitted before midnight on 7 January 2026 to fall under the existing standard.
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In November 2025, the Home Office permanently withdrew its £25,000-per-year UKVI Premium Customer Service, which previously offered businesses direct account-manager access.
Our firm now fills this gap through our Managed SMS & Reporting Service, providing ongoing professional oversight, real-time compliance updates, and a ten-day reporting guarantee for all changes to sponsored workers’ employment or contact details.
The Compliance Shield Retainer and Pre-Inspection Guarantee
Our Compliance Shield Retainer protects employers’ A-rating status through continuous monitoring and expert oversight.
We:
- File all SMS updates within statutory 10-day deadlines
- Conduct quarterly mock audits mirroring Home Office inspection standards
- Provide a Pre-Inspection Guarantee, ensuring all systems meet or exceed Home Office compliance requirements
This service keeps sponsors audit-ready and fully compliant at all times.
The Managed SMS Service – Total Risk Transfer
Our Managed SMS Service doesn’t just report changes. It transfers the burden of compliance from your HR team to our legal experts.
We act as Level 1 Users on your behalf, ensuring all updates, allocations, and reports are filed correctly and on time, protecting your licence and freeing your staff from administrative risk.
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Under the Earned Settlement Framework introduced in 2025, sponsorship now forms part of a longer immigration journey. Workers may follow either a 20-year standard route to settlement or a 10-year accelerated route if they meet defined “contribution criteria”, such as earning at least £41,700 and meeting volunteering benchmarks.
We advise employers on structuring roles and salary packages to support staff retention and progression, strengthening long-term workforce stability.
Why Firms Fail
Common reasons for sponsor licence refusals or downgrades include:
- Inadequate HR record-keeping – failing to track visa expiry dates or changes of address
- Unsuitable key personnel – appointing staff without seniority or with conflicts of interest
- Role mismatch – attempting to sponsor positions that fall below RQF Level 6
We conduct pre-licence audits to identify these risks and help clients build compliant systems before applying.
Home Office Audits and Compliance Visits
The Home Office may carry out announced or unannounced inspections before or after a licence is granted. These visits assess HR systems, record-keeping, right-to-work checks, and reporting practices.
Failure to meet compliance standards can result in a downgrade, suspension, or licence revocation, which directly impacts sponsored staff.
Our team conducts mock inspections that replicate Home Office standards, helping clients remain fully prepared.
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Applications may be refused if documentation is incomplete, information inaccurate, or if the Home Office doubts the genuineness of the role or adequacy of HR systems. In such cases, the fee is non-refundable, and the employer faces a six-month cooling-off period before reapplying.
An administrative review may be requested, although reversals are rare.
Maintaining a Sponsor Licence
Once approved, sponsors must:
- Maintain accurate employee records
- Monitor attendance and right-to-work compliance
- Report changes within ten days
- Keep HR files accessible for inspection
Meeting these duties is essential to retain an A-rating and avoid civil penalties.
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What We Offer
Our Services
we understand that immigrating to a new country is a significant
decision that comes with its own set of challenges.
Family Visas
Partner Visas
Settlement in the UK
Settlement of EEA Nationals
British Citizenship and The Right of Abode
Challenge a Refusal
Removals/Deportations
Asylum/Human Rights
Sponsor License for a UK Business
UK Business Visas
Student Visas
Popular Work Visas
Other work visas and permits
Visas without a job offer
Work for an overseas employer
Temporary work visas
UK Visit Visas
How We Can Help
At Immigration Solicitors UK, we have over twenty years of experience assisting businesses, charities, and educational institutions with sponsor licence applications.
We provide:
- Comprehensive pre-licence audits to ensure eligibility and readiness
- Preparation and submission of Appendix A evidence
- Representation during Home Office inspections
- Ongoing support through our Managed SMS and Compliance Shield services
- Strategic advice on Earned Settlement Mapping and retention planning
We combine legal precision with strategic HR insight to help employers remain compliant and competitive in the post-Brexit labour market.
To begin your sponsor licence application or book a free compliance assessment, call +44 7561 699 666 today.
FAQ
Frequently Asked Questions
How long does a sponsor licence application take?
Most are processed within six to eight weeks. Priority cases can be decided in ten days; complex cases subject to enhanced verification fall under the 24-week target.
What is the total cost for a five-year Skilled Worker sponsorship?
A large sponsor will now pay £6,600 in Immigration Skills Charges plus £525 per CoS and the initial licence fee of £1,579.
Can I recover visa or legal fees from the employee?
No. Any recovery of sponsorship costs is a criminal offence under the 2025 Act.
Does the B2 English rule apply to existing workers?
No. It applies only to first-time applicants from 8 January 2026 onwards.
What replaced the UKVI Premium Service?
Our Managed SMS & Reporting Service now provides continuous support, 10-day reporting, and expert Home Office liaison.
