The sponsor management system (SMS) is the Home Office online portal that all UK sponsor licence holders must use to assign Certificates of Sponsorship, report changes and manage licence details.
From 3 September 2026, SMS multi-factor authentication is mandatory for most sponsors. New Level 2 Users cannot be added from 9 September 2026. Existing Level 2 Users must be upgraded to Level 1 or removed by 8 March 2027. Inactive SMS user accounts risk leaving a sponsor without a Level 1 User, which can trigger licence suspension or revocation.
We at Axis Solicitors can help sponsors review their sponsor licence management system, prepare for SMS MFA and avoid non compliance that could lead to a B rating, licence suspension or enforcement action.
Let us guide you on the sponsor management system (SMS) for business immigration.
What Is the Sponsor Management System UK?
The sponsorship management system is the secure online portal provided by the Home Office and UK Visas and Immigration (UKVI). First introduced in 2008, it serves as the digital bridge between licensed organisations and government compliance. A sponsor management system centralises the entire corporate sponsorship lifecycle, from CoS assignment to reporting duties.
Worker and Temporary Worker sponsors, along with Student and Child Student sponsors, must use the SMS sponsor management system to meet their sponsor duties. Dedicated software provides structural advantages for managing corporate sponsorships, and the SMS integrates systems for tracking and payment of government administrative fees.
A centralised database management approach includes contact details and communication histories for all SMS users.
The UK government has announced that the Sponsor UK system will replace the current SMS. The initial rollout began on 24 October 2024 for selected sponsors, with full rollout expected over the next two to four years. Until then, the UKVI Sponsor Management System remains the compliance tool for new sponsor licence applications by start-ups and growing businesses.
Who Can Use the SMS?
Role delegation and user management is essential for effective SMS usage. The following personnel interact with the sponsorship management system SMS:
- Level 1 User: The primary SMS administrator. They must ensure accurate CoS assignments and updates, manage other users, file reports and read Home Office messages. A Level 1 User must be appointed before applying for a licence.
- Existing Level 2 Users: Historically had more limited access. Level 2 User sponsor licence roles are now being phased out.
- Authorising Officer and key contact: These key personnel do not automatically have SMS access unless also set up as an SMS user.
Users can manage permissions for different personnel roles within the SMS. We can advise on sponsor licence user management strategy to reduce risk.
What Can You Do Through the Sponsor Management System?
The SMS portal covers a wide range of sponsorship administration tasks. Sponsorship systems improve collaboration and faster decision-making among departments. A sponsorship management system can automate workflows to reduce manual errors.
| SMS Function | What Sponsors Can Do |
| Licence management | View and amend details, check rating status |
| CoS management | Create, assign and cancel Certificates of Sponsorship (CoS), which allow sponsors to request digital certificates for workers |
| Worker reporting | Report changes affecting sponsored workers within 10 working days |
| User management | Add or remove Level 1 Users, manage existing Level 2 Users |
| Organisation details | Report changes to ownership, addresses or key personnel |
| Home Office messages | Read notices, alerts and action plans from UKVI |
Sponsorship management systems enhance reporting of financial contributions and ROI. Derived reports can connect sponsorship investment to performance metrics.
The SMS also tracks applications for allocation requests and sponsor licence renewals, while automating reminders helps prevent missed obligations. Sponsors should retain offline HR records, including right to work checks, as the SMS is only one part of overall compliance.
How to Log Into the Sponsor Management System
SMS login UK is only available to organisations holding a valid sponsor licence with at least one approved SMS user. Users need the username and password issued by UKVI, not through any law firm or third party. Bookmark the genuine Home Office SMS portal and avoid unofficial links. Users who repeatedly enter incorrect details may lock their sponsor management system account.
Who Can Log Into SMS?
Only Level 1 Users and existing Level 2 Users approved by the Home Office can access the UKVI SMS login. The authorising officer and key contact may receive correspondence about SMS but cannot sign in unless they are also an SMS user. Keep the list of users up to date so at least one active Level 1 User is always available.
What You Need to Access SMS
- Valid sponsor licence
- Active SMS user status (Level 1 or existing Level 2)
- Username and password
- From 2026, an approved method for sponsor management system MFA (verified email or mobile number)
User credentials and security controls enhance the safety of the SMS system. Access should only be given to trusted employees with appropriate training.
What Happens When MFA Is Enabled?
Once SMS multi-factor authentication is active, you enter your username and password, then enter a one-time code sent by the Home Office SMS system to your registered phone or email. Codes are time-limited and cannot be reused. Complete the process promptly.
What Has Changed in the Sponsor Management System in 2026?
Several sponsor management system changes are taking effect between September 2026 and March 2027, applying to most sponsor licences.
| Change | What It Means for Sponsors |
| Mandatory MFA | All SMS users must verify identity with a one-time passcode |
| Level 2 User changes | No new Level 2 Users from 9 September 2026 |
| Existing Level 2 Users | Upgrade to Level 1 or deactivate by 8 March 2027 |
| Inactive accounts | Users inactive for 12+ months may be deactivated |
| Contact details | Email, mobile and date of birth must be accurate for MFA |
New licences granted from 9 September 2026 have MFA enabled from day one, with full rollout expected by November 2026.
Mandatory MFA for SMS Users
The Home Office has made sponsor licence MFA compulsory for all SMS users during 2026. Every user must have contact details capable of receiving a one-time passcode. We advise sponsors to audit all SMS user details now.
UKVI has issued dedicated sponsor management system guidance for MFA that sponsors should review before changing internal processes.
What Is MFA?
Multi-factor authentication means using at least two different methods to prove identity: a password plus a one-time passcode sent to a phone or email. SMS MFA reduces the risk of unauthorised access if passwords are compromised.
When Is MFA Being Introduced?
MFA began rolling out from 3 September 2026 and will be active for all sponsors by November 2026. Authorising officers, key contacts and Level 1 Users are notified by email approximately two weeks before MFA goes live for their licence.
How Does SMS MFA Work?
The user navigates to the UKVI SMS login page, enters username and password, then receives a one-time code by text or email. The code is linked to the details recorded in the sponsor licence management system. If those details are wrong, the user may not receive it.
What Information Must SMS Users Keep Updated?
- Full name
- Date of birth (where held)
- Email address
- Mobile number used for MFA codes
Inaccurate data can delay essential actions such as reporting worker changes within required time limits.
What If an SMS User Cannot Receive the MFA Code?
Confirm the correct contact details are recorded in the system, check spam folders and device signal. If critical deadlines are at risk, seek advice from UK immigration solicitors to avoid non compliance with sponsor duties while access issues are resolved.
What Is Happening to Level 2 Users?
Level 2 User sponsor licence roles are being abolished. Sponsors must act now to ensure continued access to their sponsorship management system. Existing Level 2 Users can continue accessing SMS during a limited transition, but new appointments are no longer permitted from 9 September 2026. Failing to manage Level 2 User changes properly may leave the organisation short of authorised personnel.
Can You Still Appoint a New Level 2 User?
No. From 9 September 2026, the Level 2 User deadline has passed. Sponsors should plan for sufficient Level 1 Users to cover their SMS operational needs.
What Happens to Existing Level 2 Users?
Existing Level 2 Users remain temporarily, but UKVI expects sponsors to upgrade each eligible user to Level 1 or remove them by 8 March 2027. After that date, remaining Level 2 accounts will be deactivated by the Home Office.
What Should Sponsors Do Now?
- Log into SMS and download a list of all current users
- Highlight existing Level 2 Users
- Check each person’s eligibility for Level 1 status
- Prioritise upgrades for experienced compliance or HR staff who manage sponsored workers
- Deactivate users who do not need access
- Document decisions as part of your compliance file
Inactive SMS User Accounts
An inactive sponsor management system account is a user profile that has not logged in for 12 months or more. UKVI is increasingly focused on ensuring only active personnel have access. Sponsors should review users at least annually, removing those who have changed position or left the organisation.
What Happens to an Inactive SMS User?
UKVI may contact the sponsor’s Level 1 Users or authorising officer to confirm whether access is still required. Users who remain inactive may be deactivated without further warning.
Why Inactive Users Can Put a Sponsor Licence at Risk
If deactivation leaves a sponsor with no active Level 1 User, the Home Office can suspend the sponsor licence and give the organisation 28 days to propose a new eligible Level 1 User. Failure to nominate within that window can lead to revocation.
A period without an active user also causes missed reporting deadlines, increasing risk during compliance visits. Treat user activity as part of regular audit preparation, not an occasional tidy-up.
Level 1 User vs Level 2 User
Understanding this distinction matters while SMS user changes are underway.
| Feature | Level 1 User | Level 2 User |
| SMS access | Full | Restricted (existing only) |
| Manage other users | Yes | No |
| Assign CoS | Yes | Yes (limited) |
| New appointments | Permitted | Not permitted from 9 Sept 2026 |
| Future status | Continues | Level 2 User abolished by March 2027 |
Multiple Level 1 Users can be appointed as needed. Level 1 is now the standard role for operational SMS access.
How to Manage SMS Users
Sponsors are responsible for ongoing sponsor licence user management within the Home Office sponsor management system. Only Level 1 Users can submit requests through the SMS portal to change user details or add new users.
Adding a Level 1 User
A Level 1 User logs into the sponsor management system UK portal, selects the function to request an additional user, and submits details for Home Office consideration. The proposed user must meet UKVI suitability criteria. Plan for at least two Level 1 Users where possible to avoid single points of failure.
Amending User Details
Level 1 Users can update email addresses and contact numbers needed for SMS MFA. Update details immediately when a user’s contact information or working location changes.
Deactivating a User
Level 1 Users can request deactivation of users who no longer need access. Prompt deactivation protects system integrity. HR and immigration teams should coordinate so SMS access is reviewed as part of every employee exit checklist.
What Happens When an Employee Leaves the Business?
As soon as an SMS user resigns or is dismissed, review their role and remove or replace them. This is especially urgent if the departing employee is the only Level 1 User, as their departure can leave the sponsor unable to meet reporting duties.
Sponsor Management System and Sponsor Licence Compliance
The sponsor management system is not just an administrative portal; it sits at the heart of sponsor licence compliance. You must report changes affecting sponsored workers within 10 working days. Changes to your organisation must be reported within 20 working days via the sponsorship management system SMS.
UKVI conducts announced and unannounced compliance checks. A B-rating limits your ability to assign new Certificates of Sponsorship and may result in a Home Office action plan.
Reviewing your Skilled Worker sponsor licence checklist can help reduce the risk that a sponsor licence is downgraded or revoked for non-compliance with duties, and you can be fined up to £60,000 for each illegal worker. Compliance depends on good offline practice too, including right to work checks, record keeping and timely responses to UKVI enquiries.
How Axis Solicitors Can Help with the Sponsor Management System
We are an SRA-authorised UK immigration law firm (SRA No. 653526) with offices in Manchester, Birmingham and London, focused on business immigration and sponsor licence work.
With over 20 years of extensive experience and more than 8,000 immigration and sponsor licence cases handled, we regularly assist employers with sponsor management system setup, Level 1 User appointments, MFA preparation, reporting strategies and responses to Home Office compliance action.
If you are unsure about any aspect of the sponsorship management system SMS or the 2026 changes, book a consultation with our team. We help sponsoring organisations of all sizes stay ahead of immigration rules and ensure compliance with their sponsor duties.
Common Sponsor Management System Problems
Most issues relate to access, MFA, user management and missed deadlines. In complex or high-risk situations, cross-check with official UK guidance and consider advice from experienced immigration solicitors.
- Cannot log into SMS? Check your password, confirm you are using the correct UKVI SMS login link, and verify with another Level 1 User whether your account is still active.
- Not received your MFA code? Confirm contact details in the system match the device being checked. Ensure messages from the Home Office SMS portal are not being filtered.
- Phone number or email wrong? Ask an existing Level 1 User to correct them before MFA goes live to avoid an inactive sponsor management system account.
- Level 2 User still active? During the transition period this is normal, but plan an upgrade path before the 8 March 2027 Level 2 User deadline.
- No active Level 1 User? This is a serious risk. Take urgent legal assistance to identify a suitable candidate for UKVI approval.
- SMS user deactivated? Review why, ensure enough Level 1 Users remain, and consider requesting a replacement if operationally required.
Sponsor Management System Checklist for Employers
- Review all SMS users quarterly
- Ensure at least two active Level 1 Users where possible
- Identify and plan for Level 2 User changes before March 2027
- Remove users who have left the sponsoring organisation
- Confirm MFA contact details for every user
- Read new Home Office SMS messages each week
- Verify sponsored worker reports are filed within relevant deadlines
- Check that licence details, addresses and key personnel are accurate
- Review internal HR processes around right to work checks and record keeping
- Diarise an annual full sponsor licence health check
Frequently Asked Questions
Does the Sponsor Management System replace right to work checks?
No. Sponsors must still complete compliant right to work checks for all employees and keep evidence offline. SMS records and HR files should be consistent.
How often should we log into the Sponsor Management System?
At least once a month, and more frequently during active recruitment or when there are changes to sponsored workers or the organisation.
Can we delegate all SMS work to an external representative?
While sponsors can appoint legal representatives as Level 1 Users, the sponsoring organisation remains responsible for compliance. Maintain at least one trained internal Level 1 User.
What happens if we miss a reporting deadline in SMS?
Missing a deadline does not automatically mean revocation, but repeated failures can contribute to findings of non compliance during a Home Office audit. Report as soon as possible and seek advice if the omission is serious.
Is there a way to test our internal SMS processes before a Home Office visit?
Carry out an internal or external mock audit, checking user access, reporting procedures, HR files and SMS records against Home Office sponsor management system guidance. We can conduct structured sponsor licence audits and training sessions to prepare organisations for UKVI compliance checks.
