UK Sponsor Licence
UK Sponsor Licence
The UK Skilled Worker Sponsor Licence (formerly the Tier 2 Sponsor Licence) allows UK businesses to hire highly skilled professionals from around the globe. This UK Sponsor Licence, overseen by the UK Home Office, is essential for any employer seeking to access international talent and fill roles that meet specific skill and salary requirements.
To recruit skilled workers from overseas, your business must hold a valid Skilled Worker UK Sponsor Licence. This licence enable you to hire for positions that meet the Regulated Qualifications Framework (RQF) Level 3 or higher.
While the Skilled Worker UK Sponsor Licence application process can be a barrier, our immigration solicitors can guide you through every step of the process, from assessing your eligibility and preparing your application to liaising with UK Visas and Immigration (UKVI) on your behalf.
What is a Sponsor Licence?
A Sponsor Licence, formally known as a “permission to sponsor,” is granted by the UK Home Office, specifically UK Visas and Immigration (UKVI). This authorisation is fundamental for businesses operating in the United Kingdom that wish to recruit and employ eligible foreign nationals under the UK’s points-based immigration system. It serves as a gateway to accessing a global talent pool, crucial for filling skills gaps and driving innovation within your organisation.
The necessity of obtaining this licence underscores the government’s position that sponsoring foreign workers is a privilege, not an inherent right. Businesses must demonstrate their suitability and commitment to upholding stringent immigration rules and ongoing compliance duties. Possessing a Sponsor Licence not only enables you to hire international talent but also enhances your business’s credibility and demonstrates a commitment to lawful and ethical recruitment practices.
Axis Solicitors can provide tailored advice on how obtaining a Sponsor Licence can strategically benefit your business in 2025, including access to specific visa routes like the Skilled Worker visa.
Who Needs a Sponsor Licence?
In 2025, the requirement for a Sponsor Licence extends to most UK businesses wishing to employ individuals who are not ‘settled workers’ (British or Irish citizens, or individuals with settled status under the EU Settlement Scheme or indefinite leave to remain). This includes citizens of the European Union, Iceland, Liechtenstein, Norway, and Switzerland who arrived in the UK after 31 December 2020 and do not hold status under the EU Settlement Scheme.
The need for a licence is not limited to paid employment; even organisations engaging individuals for unpaid work, such as charities, may require a licence under specific routes like the Charity Worker visa. Various sectors, including but not limited to IT, healthcare, finance, education, engineering, and creative industries, frequently rely on Sponsor Licences to attract and employ skilled professionals from overseas.
Specific scenarios necessitating a Sponsor Licence include:
- Employing skilled workers: This is the most common use, typically under the Skilled Worker visa route, for roles meeting specific skill and salary thresholds. Examples include IT professionals, engineers, healthcare workers (doctors, nurses), academics, and financial analysts.
- Intra-Company Transfers (now part of the Global Business Mobility route): For multinational companies transferring senior managers or specialist employees from an overseas branch to a UK branch.
- Temporary Workers: Sponsorship is required for various temporary routes, such as Charity Worker (for unpaid voluntary work), Creative Worker (for artists, entertainers, musicians), Seasonal Worker (primarily in agriculture), and others under the Global Business Mobility and Temporary Worker routes.
- Religious Workers: For individuals coming to the UK for religious work.
- International Sportspersons: For elite sportspersons and coaches.
- Scale-up Workers: For talented individuals recruited by a UK Scale-up business.
Even if the work is unpaid, as in the case of a charity engaging a foreign national, a Sponsor Licence is usually required under the appropriate visa route. It’s crucial to assess the immigration status of any potential employee who is not a British or Irish citizen to determine if sponsorship is necessary.
Determining whether your specific business activities and recruitment needs necessitate a Sponsor Licence can be complex. Contact Axis Solicitors for a clear assessment of your situation and expert guidance on the relevant immigration routes.
Sponsor Licence Requirements
Meeting the eligibility criteria for a Sponsor Licence in 2025 is fundamental. UKVI conducts a thorough assessment to determine if your organisation is suitable. The key requirements are detailed below:
- Genuine Trading Organisation: You must demonstrate that your business is a legitimate, active trading entity operating lawfully in the UK. This is assessed through the documentation provided and potentially a pre-licence compliance visit. Simply having a registered company name may not be sufficient; you need to show evidence of ongoing business activity.
- Operating Lawfully in the UK: Your business must comply with all relevant UK legislation, including company law, employment law, and tax regulations. Having a physical trading presence in the UK is generally required, although there are specific provisions for overseas businesses under the UK Expansion Worker route.
- Robust HR Systems and Processes: This is a critical area of assessment. UKVI needs assurance that your organisation has the necessary HR infrastructure to manage sponsored workers effectively and comply with reporting and record-keeping duties. This includes having systems for:
- Monitoring and recording sponsored workers’ attendance.
- Keeping accurate and up-to-date contact details for sponsored workers.
- Tracking sponsored workers’ visa expiry dates.
- Maintaining copies of sponsored workers’ passports, visas/BRPs/eVisa confirmations, and evidence of their right to work.
- Recording salary and employment details.
- Reporting specific changes to UKVI via the SMS within required timescales.
- Conducting compliant right to work checks.
- Ensuring sponsored workers are employed in the role and at the salary specified on their CoS.
- Appointment of Suitable Key Personnel: You must nominate individuals to manage your Sponsor Licence through the SMS. These roles are:
- Authorising Officer (AO): A senior and competent person responsible for the actions of all SMS users. They must be based in the UK and a paid employee, partner, or director. They bear ultimate responsibility for ensuring compliance.
- Key Contact: The main point of contact between your organisation and UKVI. They must be based in the UK.
- Level 1 User: Responsible for the day-to-day management of the licence on the SMS, including assigning CoS and reporting duties. You must have at least one Level 1 User who is a paid employee, partner, or director and based in the UK. UKVI will assess the suitability and trustworthiness of these individuals, checking for any history of immigration offences, criminal convictions, or previous failures to comply with immigration rules as a sponsor or migrant.
- Financial Stability: While there is no strict financial threshold for all routes, your business should demonstrate that it is financially stable enough to support the sponsored workers you intend to employ and meet the associated costs (salaries, visa fees, Immigration Health Surcharge, Immigration Skills Charge).
- Genuine Vacancies Meeting Requirements: The roles you intend to sponsor must be genuine vacancies that meet the minimum skill level and salary thresholds for the relevant visa route. For the Skilled Worker route, this means the job must be at an eligible skill level (equivalent to RQF level 3 or above) and meet the higher of the general salary threshold (significantly increased in 2024 and subject to review) or the ‘going rate’ for that specific occupation code.
- Compliance with UK Immigration Control: Your organisation and its key personnel must not have any adverse history that would suggest a risk to immigration control, such as previous breaches of immigration law or involvement in illegal immigration.
Meeting these requirements demonstrates to UKVI that your business is responsible and capable of fulfilling the duties associated with sponsorship.
Axis Solicitors can provide detailed advice on each of these requirements and help you build a strong case for your Sponsor Licence application in 2025.
Required Documents for a Sponsor Licence Application
The submission of accurate and comprehensive supporting documents is a pivotal stage of the 2025 Sponsor Licence application process. These documents serve as evidence to UKVI that your business meets the eligibility and suitability criteria. The definitive list of required documents is found in Appendix A of the ‘Workers and Temporary Workers: guidance for sponsors’, which was updated in April 2025. It is absolutely essential to refer to the latest version of this document as requirements can change.
Typically, you will need to provide a minimum of four documents from Appendix A, although the exact number and type depend on your organisation’s structure, industry, and the visa routes you are applying for. Common document categories include:
- Proof of UK Business Registration:
- Companies House registration number (UKVI can often check this online).
- Certificate of Incorporation.
- For other structures (e.g., partnerships, sole traders), relevant registration or tax documents.
- Evidence of Operating Lawfully in the UK:
- HMRC registration for PAYE and National Insurance.
- VAT registration certificate (if applicable).
- Bank statements for a UK-regulated bank account in the business’s name (covering a specified period, e.g., the last 6 months).
- Lease agreement or proof of ownership for your business premises.
- Proof of trading, such as recent invoices, contracts, or evidence of ongoing business activities.
- Employer’s Liability Insurance certificate (minimum £5 million).
- Financial Evidence:
- Latest set of audited or unaudited accounts (requirements vary by company size).
- Letter from an accountant confirming your trading activity and financial health.
- Evidence of HR Systems and Compliance Capabilities:
- Organisational chart showing the structure and key personnel.
- Employee handbook or documented HR policies, including procedures for monitoring attendance, reporting changes, and right to work checks.
- Job descriptions for the roles you intend to sponsor.
- Details of Key Personnel:
- Copies of their passports or other identity documents.
- Proof of their address in the UK.
- Confirmation of their position within the organisation (e.g., employment contract, director’s appointment).
All documents must be current and accurately reflect your business’s situation. Scanned copies or photographs of the original documents are typically submitted electronically via email after the online application is submitted and paid for. Each document must adhere to specific formatting and naming conventions detailed in the submission instructions to ensure they are accepted. Providing false or misleading information or failing to submit the required documents is a common reason for application refusal, often leading to a cooling-off period before you can reapply.
Incomplete or incorrect documentation is a common reason for application delays or refusals. Let Axis Solicitors assist you in meticulously preparing and checking your required documents to ensure they meet UKVI’s strict requirements for 2025.
How to Apply for a Sponsor Licence
The process of applying for a Sponsor Licence in 2025 is primarily digital and requires careful attention to detail. The steps involved are as follows:
- Access the Online Application: The application is made through the Home Office’s Sponsor Management System (SMS) portal, accessible via the GOV.UK website. You will need to register and create an account for your organisation.
- Complete the Online Application Form: The online form is comprehensive and requires detailed information about your business, including its structure, trading activities, history, and the types of roles you intend to sponsor. You will also need to provide details of the nominated key personnel. Be prepared to answer questions about your proposed HR systems and how you will ensure compliance with sponsor duties. It is highly recommended to save your progress regularly as you complete the form, as sessions can time out.
- Select Visa Routes: During the application, you will select the ‘routes’ you wish to be licensed for (e.g., Skilled Worker, Global Business Mobility). You may apply for multiple routes on a single application.
- Nominate Key Personnel: You will enter the details of the individuals you have nominated as the Authorising Officer, Key Contact, and Level 1 User(s) within the online form.
- Pay the Application Fee: Once the online form is completed, you will be prompted to pay the application fee. As of April 9, 2025, the fee structure is:
- Small Sponsor or Charity: £574
- Medium or Large Sponsor: £1,579 The definition of a ‘small company’ for these purposes aligns with the Companies Act 2006 definition, with updated turnover (£15 million) and balance sheet total (£7.5 million) thresholds effective from April 6, 2025. Ensure you correctly identify your business size to pay the appropriate fee. Paying the wrong fee will result in your application being rejected.
- Generate and Save Submission Sheet: After successful payment, a submission sheet will be generated. This document contains a unique reference number and crucial instructions on how and where to send your supporting documents. You must save and download this sheet.
- Submit the Online Application: The Authorising Officer must formally submit the online application through the SMS.
- Electronically Submit Supporting Documents: You must gather all the required supporting documents (identified in Appendix A) and send them electronically via email to the specific email address provided on your submission sheet. Adhere strictly to the file format, naming, and size requirements outlined in the instructions. Documents must be submitted within a specified timeframe (usually 5 working days) after the online application is submitted and paid for.
- Await Decision and Potential Compliance Visit: UKVI will review your application and documents. Be prepared for a potential pre-licence compliance visit during this period. The standard processing time is up to 8 weeks from the date UKVI receives your online application and all required supporting documents. A priority service, if available for an additional fee (currently £500 for a decision within 10 working days), can potentially speed up the process, but its availability can fluctuate based on UKVI’s workload..
Axis Solicitors can guide you through each stage of the online application process, ensuring the form is completed accurately and all necessary information is provided to streamline your application in 2025.
After You Apply for a Sponsor Licence
Once your Sponsor Licence Application for 2025 has been submitted and the required supporting documents sent, the process moves into the assessment phase by UKVI. Here’s what typically happens:
- Application Acknowledgment: UKVI will acknowledge receipt of your online application and supporting documents.
- Initial Review: Caseworkers will conduct an initial review to ensure all mandatory documents have been submitted and that the application is complete. If key documents are missing, your application may be rejected, requiring you to reapply and pay the fee again.
- Detailed Assessment: A detailed assessment of your application and supporting evidence will be undertaken. This involves verifying the information provided against internal records and potentially external sources (e.g., Companies House, HMRC).
- Requests for Further Information (RFFIs): It is relatively common for UKVI to issue a Request for Further Information (RFFI) if they require clarification on any aspect of your application or need additional evidence. You will be given a deadline to respond, and a timely and comprehensive response is crucial. Failure to respond adequately can lead to refusal.
- Pre-Licence Compliance Visit: UKVI may decide to conduct a pre-licence compliance visit to your business premises before making a decision. The purpose of this visit is to:
- Verify the information provided in your application.
- Assess your business’s physical presence and trading activity.
- Evaluate your proposed HR systems and your understanding of sponsor duties. The visiting officer will typically interview key personnel (especially the Authorising Officer and Level 1 User) and may review your proposed record-keeping systems and relevant policies. Being well-prepared for this visit is vital.
- Decision Making: Based on the review of your application, supporting documents, responses to any RFFIs, and the outcome of any pre-licence visit, UKVI will make a decision on your application.
- Notification of Decision: You will be notified of the decision in writing.
- Approval: If successful, you will receive a letter confirming the grant of your Sponsor Licence, your unique sponsor licence number, and your initial licence rating (usually A). Details on how to access and use the Sponsorship Management System (SMS) will be provided.
- Refusal: If refused, you will receive a refusal letter detailing the specific reasons for the refusal. Common reasons include failing to provide sufficient evidence, providing false information, failing a compliance check, or nominating unsuitable key personnel. A refusal often comes with a ‘cooling-off period’ (typically 6 or 12 months) during which you cannot reapply, unless the reasons for refusal were purely administrative (e.g., paying the wrong fee).
Axis Solicitors can provide invaluable assistance during the post-application phase, helping you respond to any requests from UKVI and preparing you for a potential compliance visit.
Sponsor Licence Rating
Upon successful application in 2025, your business will be granted a Sponsor Licence and assigned a rating by UKVI. This rating reflects UKVI’s assessment of your ability and commitment to meeting your sponsor duties.
- A-Rating: This is the standard and desired rating. An A-rating indicates that UKVI is satisfied that you meet all the eligibility criteria and are capable of fulfilling your sponsorship obligations. Holding an A-rating allows you to assign Certificates of Sponsorship (CoS) and sponsor migrants under the routes listed on your licence.
- B-Rating: In some cases, particularly if minor concerns about your HR systems or understanding of sponsor duties are identified during the application process or a subsequent compliance visit, UKVI may assign a B-rating. A B-rating signifies that while your licence is active, there are areas where your compliance needs improvement. Crucially, a B-rated sponsor cannot assign new Certificates of Sponsorship. You will be provided with a time-limited action plan by UKVI outlining the steps you must take to address the identified compliance issues.
- Upgrading from B to A: To regain the ability to sponsor new workers, you must successfully complete the action plan and demonstrate to UKVI that your compliance has improved. UKVI may conduct a further visit or request evidence to confirm this.
- Failure to Improve: If you fail to complete the action plan within the specified timeframe or do not demonstrate sufficient improvement, your Sponsor Licence is likely to be suspended and subsequently revoked.
Maintaining an A-rating is an ongoing responsibility. UKVI monitors licensed sponsors through various means, including announced and unannounced compliance visits. Any breach of sponsor duties can lead to your rating being downgraded from A to B, or in serious cases, directly to suspension or revocation.
Maintaining your A-rating is paramount throughout the duration of your licence. UKVI conducts ongoing monitoring of licensed sponsors, and any failure to meet your compliance duties can result in your rating being downgraded, which will impact your ability to sponsor workers. Axis Solicitors can provide ongoing support and conduct compliance audits to help you understand and maintain your Sponsor Licence rating in 2025.
Sponsor Licence Compliance Duties
Holding a Sponsor Licence in 2025 comes with significant and ongoing compliance responsibilities. These duties are in place to prevent abuse of the immigration system and ensure the welfare of sponsored workers. Diligent adherence to these duties is essential for maintaining your licence and A-rating. The Home Office’s ‘Workers and Temporary Workers: guidance for sponsors – Part 3: Sponsor duties and compliance’ (updated in April 2025) provides detailed information on these obligations. Key duties include:
- Record-Keeping Duties: You must keep accurate, up-to-date, and readily accessible records for all sponsored workers. This includes:
- Copies of the worker’s passport (including photograph page), visa or BRP/eVisa confirmation showing their immigration status and permission to work.
- Evidence of compliant right to work checks conducted before the worker started employment.
- The worker’s contact details (phone number, email address, and UK residential address).
- Their National Insurance number.
- A copy of their employment contract or written statement of terms and conditions.
- Job description for the sponsored role.
- Salary details, including payslips and records of payments.
- Records of the worker’s start and end dates of employment.
- Records of absences from work, including sick leave and unauthorised absences.
- Details of any changes to the worker’s job title, duties, or salary. These records must be kept for a specified period (usually for the duration of the sponsorship and for one year after the sponsorship ends).
- Reporting Duties: You must report specific events and changes to UKVI via the Sponsorship Management System (SMS) within defined time limits. These include:
- A sponsored worker failing to start their employment within 28 days of the start date on their CoS.
- A sponsored worker being absent from work without permission for more than 10 consecutive working days.
- A sponsored worker’s contract of employment being terminated or them otherwise leaving their employment.
- Significant changes to a sponsored worker’s job role, duties, or salary (if it falls below the required threshold).
- Changes to the sponsored worker’s contact details.
- Changes to your organisation’s details, such as a change of address, name, or key personnel.
- Any information suggesting the sponsored worker may be breaching their visa conditions.
- Compliance with UK Immigration Law: You must ensure that you only employ individuals who have the right to work for you in the sponsored role and that sponsored workers comply with the conditions of their visa. This includes not employing them in a different role or at a lower salary than stated on their CoS (unless permitted by the rules).
- Compliance with Wider UK Law: You are expected to comply with all relevant UK legislation, including but not limited to:
- Employment law (e.g., working hours regulations, holiday entitlement).
- National Minimum Wage and National Living Wage requirements.
- Health and Safety regulations.
- Discrimination law.
- Cooperation with UKVI: You must cooperate fully with UKVI compliance officers, including allowing access to your premises and providing requested documentation during compliance visits (announced or unannounced).
Failure to meet these compliance duties can result in penalties ranging from a warning to a downgrading of your licence, suspension, or ultimately, revocation. Robust internal systems and trained personnel are essential for effective compliance management. Axis Solicitors offers expert guidance and support on fulfilling your Sponsor Licence compliance duties in 2025.
Top 10 Sponsor Licence Application Tips
Based on the requirements and process for 2025, here are some crucial tips to maximise your chances of a successful Sponsor Licence application:
Based on the detailed requirements and common challenges in the 2025 Sponsor Licence application process, here are ten actionable tips to enhance your application’s success:
- Conduct a Thorough Internal Audit: Before applying, assess your business’s structure, HR systems, and recruitment practices against the Sponsor Licence requirements. Identify any gaps and address them proactively.
- Appoint and Train Key Personnel Carefully: Choose reliable, senior individuals who meet the suitability criteria and have a strong understanding of the responsibilities involved. Provide them with adequate training on the SMS and sponsor duties.
- Verify Job Eligibility and Salary: Ensure the roles you intend to sponsor meet the required skill level (RQF level 3+) and the higher of the general salary threshold or the going rate for the occupation code, considering the significant increases in 2024 and any further updates in 2025.
- Prepare Comprehensive and Accurate Documents: Meticulously gather all documents listed in the latest Appendix A relevant to your business and chosen routes. Ensure they are current, accurate, and presented in the required format for electronic submission.
- Write a Strong Cover Letter: While not always mandatory for all business types, a well-written cover letter can summarise your business, explain your need for a Sponsor Licence, and highlight how you meet the key requirements, providing context for your application and documents.
- Anticipate and Prepare for a Compliance Visit: Assume you will receive a pre-licence visit. Ensure your proposed HR systems are in place (even if not yet fully tested with sponsored workers) and that your key personnel are ready to be interviewed and demonstrate their understanding of sponsor duties.
- Ensure Financial Stability and Evidence It: Be prepared to demonstrate your business’s financial health through accounts or an accountant’s letter, showing you can support sponsored workers at the required salary levels.
- Understand the Sponsorship Management System (SMS): Familiarise your nominated Level 1 User(s) with the SMS functionalities, including how to assign CoS and report changes, even before your licence is granted.
- Stay Informed About Rule Changes: Immigration rules are subject to change. Keep track of updates announced by the Home Office, particularly regarding salary thresholds, eligible occupation codes, and compliance requirements in 2025.
- Seek Expert Legal Advice Early: Engage with qualified immigration lawyers like Axis Solicitors from the outset. Their expertise can help you navigate the complexities, identify potential issues, ensure your application is robust, and guide you through the entire process.
Using Your Sponsor Licence
Once your Sponsor Licence Application for 2025 is successfully approved and you have received your licence number and A-rating, you are authorised to begin sponsoring eligible foreign workers. This is facilitated through the Sponsorship Management System (SMS).
The core function of using your licence is assigning a Certificate of Sponsorship (CoS) to an individual you wish to sponsor. A CoS is not a physical certificate but a unique electronic reference number that a migrant needs to include in their visa application. Each CoS is tied to a specific migrant and a specific job role within your organisation.
There are two types of Certificates of Sponsorship:
- Defined CoS (formerly ‘restricted’ CoS): These are for Skilled Worker visa applicants who are applying for entry clearance from outside the UK. You must apply to UKVI for a Defined CoS allocation for each individual migrant you wish to sponsor from overseas. These applications are considered based on monthly allocations and must include details about the specific job and migrant. UKVI reviews these applications to ensure the role is eligible and meets the requirements before a CoS is granted to your allocation.
- Undefined CoS (formerly ‘unrestricted’ CoS): These are for Skilled Worker visa applicants who are applying for permission to stay from within the UK (e.g., switching from a student visa), and for migrants applying under most other visa routes (e.g., Global Business Mobility, Minister of Religion, Charity Worker), regardless of whether they are applying from inside or outside the UK. When you apply for a Sponsor Licence, you request an initial annual allocation of Undefined CoS based on your projected recruitment needs for the first year. Subsequently, you can apply for an annual Skilled Worker Sponsor Licence renewal of your allocation or request additional Undefined CoS during the year if needed.
To assign a CoS (once allocated to your licence), you must access the SMS and create a CoS record for the specific individual. This record will include details such as:
- The migrant’s personal information.
- The visa route they are applying under.
- Details of the sponsored role (job title, occupation code, duties).
- The proposed salary, demonstrating it meets the relevant threshold for the visa route and occupation code (considering the 2024/2025 salary increases).
- The start and end dates of employment.
- Confirmation that the worker is eligible for the role.
You will also need to pay a CoS fee for each certificate you assign:
- Skilled Worker CoS: £525 (increased from £239 in Spring 2025).
- Temporary Worker CoS: £55 (increased from £25 in Spring 2025).
Additionally, for Skilled Worker and Senior or Specialist Worker CoS, you will likely need to pay the Immigration Skills Charge (ISC). This is a fee based on the size of your organisation and the length of employment:
- Small Sponsor or Charity: £364 per sponsored worker per year.
- Medium or Large Sponsor: £1,000 per sponsored worker per year.
The ISC is paid upfront for the duration of the initial period of leave being granted.
Assigning a CoS confirms your offer of employment and your commitment to sponsoring the individual. The migrant then uses the CoS reference number to submit their visa application. It is crucial to assign the correct type of CoS and ensure all the information is accurate, as errors can lead to visa refusal for the applicant. The migrant typically has 3 months from the date the CoS is assigned to submit their visa application.
Axis Solicitors can provide expert advice on the correct CoS allocation, ensuring the role and salary meet the specific requirements of the visa route, and guide you through the process of assigning a CoS via the SMS.
Summary
For UK businesses aspiring to leverage global talent in 2025, obtaining and maintaining a Sponsor Licence is an indispensable requirement. The Sponsor Licence Application process is a detailed and rigorous undertaking that demands careful preparation, a thorough understanding of the eligibility criteria, and the ability to demonstrate robust HR systems and a commitment to ongoing compliance.
The application involves preparing comprehensive supporting documentation in line with the latest guidance (including the April 2025 Appendix A), completing a detailed online application via the Sponsorship Management System (SMS), and paying the relevant fees (updated in April 2025). Businesses must be prepared for potential scrutiny, including pre-licence compliance visits.
Upon approval, businesses are granted a Sponsor Licence, usually with an A-rating, which permits them to assign Certificates of Sponsorship (CoS) to eligible foreign workers under various visa routes, such as the Skilled Worker visa. The assignment of a CoS, for which fees (increased in Spring 2025) and potentially the Immigration Skills Charge are payable, is a critical step in the migrant’s visa application process.
Holding a Sponsor Licence is not a one-time event; it imposes ongoing duties related to record-keeping, reporting specific events to UKVI, and ensuring continuous compliance with immigration and wider UK law. Failure to meet these duties can result in licence downgrading, Sponsor licence suspension, or revocation.
Navigating the complexities of the Sponsor Licence regime can be challenging. Let Axis Solicitors provide the expertise and support you need to successfully apply for and manage your Sponsor Licence.
Need Assistance?
Navigating the Sponsor Licence Application 2025 process can be a complex and demanding undertaking. At Axis Solicitors, we understand the intricacies of UK immigration law for businesses and offer expert guidance and dedicated support to organisations of all sizes. Our experienced immigration law team can assist you at every stage, from assessing your eligibility and preparing your application and supporting documents to ensuring you meet all the necessary requirements and understand your ongoing compliance duties.
Key Statistics & Trends
While precise real-time statistics for Sponsor Licence applications approved in 2025 will become available later in the year, recent trends provide valuable context:
- Sustained High Volume of Applications: The demand for Sponsor Licences has remained consistently high since the post-Brexit implementation of the new immigration system. UKVI continues to process a significant number of applications as businesses adapt to the need to sponsor both non-EEA and newly requiring-sponsorship EEA nationals.
- Sector-Specific Demand: The healthcare sector, in particular, continues to be a major user of the Skilled Worker route, driven by ongoing workforce needs. The technology, engineering, and financial services sectors also consistently show high volumes of sponsored workers.
- Increased Salary Threshold Impact: The significant increases to the general salary threshold and occupation-specific going rates for the Skilled Worker route implemented in April 2024 have likely influenced recruitment strategies and the types of roles being sponsored in 2025. Businesses are adjusting to these higher cost implications.
- Focus on Compliance and Enforcement: UKVI has demonstrated a continued emphasis on post-licence compliance. Statistics from previous years show a notable number of compliance visits conducted and licences suspended or revoked due to breaches of sponsor duties. This trend is expected to continue in 2025, highlighting the importance of robust internal compliance systems.
- Impact of CoS Fee Increases: The substantial increase in Certificate of Sponsorship fees for Skilled Workers and temporary workers from Spring 2025 adds another financial consideration for sponsoring businesses. While not a direct impact on the application for the licence itself, it affects the cost of using the licence.
- Changes in Small Company Definition: The updated thresholds for defining small companies from April 2025 will likely see more businesses qualify for the lower Sponsor Licence application fee and Immigration Skills Charge, potentially making sponsorship more accessible for a larger number of SMEs.
Keeping an eye on official government immigration statistics released by the Home Office and staying informed about policy updates is crucial for licensed sponsors. Axis Solicitors stays updated on the latest immigration statistics and trends to provide informed advice.
Glossary
Terms | Definition |
Sponsor Licence | The legal permission granted by the Home Office to a UK-based organisation, enabling it to employ foreign nationals under specific work and temporary work visa routes. It is valid for four years. |
Certificate of Sponsorship (CoS) | An electronic record with a unique reference number assigned by a licensed sponsor to an individual foreign national. This number is essential for the migrant to include in their visa application. A CoS confirms that the sponsor is willing to sponsor the individual and that the role meets the requirements of the relevant visa route. |
Defined CoS | A type of CoS required for Skilled Worker visa applicants applying for entry clearance from outside the UK. These are requested individually from UKVI and are subject to an annual allocation limit (though this limit is typically high enough to meet demand). |
Undefined CoS | A type of CoS used for Skilled Worker visa applicants applying for permission to stay from within the UK and for migrants applying under most other Worker and Temporary Worker routes (regardless of location). Sponsors request an annual allocation of Undefined CoS based on their projected needs. |
Sponsorship Management System (SMS) | The secure online portal provided by UKVI that licensed sponsors must use to manage their licence, request and assign CoS, report changes to sponsored workers’ circumstances, and update their organisation’s details. |
Authorising Officer (AO) | A senior person within the sponsoring organisation (an employee, partner, or director) who is responsible for the overall management of the Sponsor Licence and ensuring compliance with sponsor duties. They are responsible for the actions of all SMS users linked to the licence and must be ordinarily resident in the UK (with limited exceptions). |
Key Contact | The nominated individual within the sponsoring organisation who serves as the primary point of communication between the sponsor and UKVI. They must be based in the UK. |
Level 1 User | An individual within the sponsoring organisation responsible for the day-to-day management of the Sponsor Licence using the SMS. This includes assigning CoS and reporting worker activity. They must be a paid employee, partner, or director and based in the UK. A Level 2 User has more limited access, typically only to assign CoS. |
UKVI (UK Visas and Immigration) | An executive agency of the Home Office responsible for the UK’s visa and immigration system, including administering the Sponsor Licence scheme, processing applications, and conducting compliance checks. |
Immigration Skills Charge (ISC) | A mandatory fee paid by licensed sponsors when assigning a Skilled Worker or Senior or Specialist Worker CoS. The charge is levied per sponsored worker for each year of sponsorship and is intended to encourage businesses to train and hire resident workers. The rate depends on the size of the sponsoring organisation. |
Appendix A | A crucial annex to the Home Office’s ‘Workers and Temporary Workers: guidance for sponsors’ that lists the specific supporting documents required for different types of Sponsor Licence applications. Referring to the version valid from April 9, 2025, is essential. |
Immigration Salary List (ISL) | This list, which replaced the Shortage Occupation List, details skilled occupations where the UK government considers there to be a shortage of resident workers. Sponsoring a worker in an occupation on the ISL may allow for a lower minimum salary threshold for the Skilled Worker visa route. The ISL is subject to review and updates. |
Right to Work Check | A legal requirement for all UK employers to check a potential employee’s immigration status to confirm their right to work in the UK before employment begins. For sponsored workers, this involves checking their visa or immigration status document. |
Additional Resources
For official and detailed information regarding UK Sponsor Licence applications and sponsorship duties, refer to the following resources on the GOV.UK website:
- UK Visas and Immigration: The main section for immigration information. [https://www.gov.uk/browse/visas-immigration]
- Workers and Temporary Workers: guidance for sponsors: This is the primary source of detailed policy guidance for licensed sponsors, updated regularly. Look for the latest versions, including updates from April 2025. [https://www.gov.uk/guidance/sponsor-a-worker-or-temporary-worker]
- Sponsor guidance Appendix A: supporting documents: This appendix lists the specific documents required for a Sponsor Licence application, updated in April 2025. [ https://www.gov.uk/government/publications/supporting-documents-for-sponsor-applications-appendix-a]
- Sponsorship Management System (SMS) Manuals: These manuals provide detailed instructions on how to use the online SMS system. [https://www.gov.uk/government/collections/sms-manuals-for-sponsors]
Axis Solicitors can help you navigate these resources and provide context and advice tailored to your specific situation.
UK Sponsor Licence Application Services
Our specialist immigration solicitors are experts in preparing comprehensive sponsor licence applications, ensuring your business meets all Home Office requirements for employing overseas workers.
- Free Initial Eligibility Assessment
- Flexible Services (In-person, Phone, Virtual)
- Complete Application Preparation, Review, and Submission
- Compliance and Record-Keeping Support
- Ongoing Monitoring and Licence Management Assistance
We provide end-to-end support to help you navigate the UK Sponsor Licence process and ensure your business is compliant with UK immigration rules.
How can we help you with your UK Sponsor Licence Application?
Our highly experienced Business Immigration Solicitors will meticulously prepare and submit all the necessary paperwork and advise you on the necessary requirements to apply for a Skilled Worker UK Sponsor Licence.
We will assess your eligibility and consider all the relevant circumstances to ensure that you are compliant with Home Office requirements. We provide expert advice on procedures required to meet the Skilled Worker UK Sponsor Licence. Our solicitors will assist you with the Home Office audit visits and in maintaining an adequate HR system for your business.
FAQ: UK Sponsor Licence Applications
A Sponsor Licence is a permission granted by the UK Home Office that allows businesses in the UK to sponsor eligible foreign nationals to work in the UK. This is the first step for your Sponsor Licence Application 2025.
Generally, any UK business that wants to employ individuals who are not UK citizens and do not have settled status in the UK needs a Sponsor Licence. This now includes most EU, Icelandic, Liechtenstein, Norwegian, and Swiss citizens who arrived after 31 December 2020. Determine if you need one for your Sponsor Licence Application 2025.
The cost of applying for a sponsor licence in the UK depends on the size of your organisation and the type of licence you need. Here’s a detailed breakdown:
For Medium and Large Businesses:
- Skilled Worker Licence: £1,476
- Temporary Worker Licence: £536
- Skilled Worker & Temporary Worker Licence: £1,476
- Adding a Temporary Worker Licence to an existing Skilled Worker Licence: No fee
- Adding a Skilled Worker Licence to an existing Temporary Worker Licence: £940
For Small Businesses and Charitable Organisations:
- Skilled Worker Licence: £536
- Temporary Worker Licence: £536
- Skilled Worker & Temporary Worker Licence: £536
- Adding a Temporary Worker Licence to an existing Skilled Worker Licence: No fee
- Adding a Skilled Worker Licence to an existing Temporary Worker Licence: No fee
Additional Costs:
- Certificate of Sponsorship (CoS) Fees: £239 for each worker under most routes, and £25 for Temporary Worker routes.
- Immigration Skills Charge (ISC): For medium or large sponsors, the ISC is £1,000 per year for the first 12 months, plus £500 for every additional 6 months. For small businesses and charities, the charge is £364 for the first 12 months and £182 for every additional 6 months.
These fees are designed to reflect the size and resources of the business, helping smaller organisations access overseas talent at a reduced cost.
The two main types are the Worker licence (for skilled employment) and the Temporary Worker licence (for specific short-term roles). Choose the right type for your Sponsor Licence Application 2025.
The standard processing time for a sponsor licence application is up to 8 weeks. In some cases, a compliance visit may be required, which could extend the processing time. Employers can pay an additional £500 for the priority service, which aims to provide a decision within 10 working days, subject to availability.
Yes, your UK Sponsor Licence can be revoked by the Home Office if you fail to meet your obligations as a sponsor. Holding a UK Sponsor Licence is considered a privilege, and strict compliance with immigration laws and sponsorship duties is required. Failure to adhere to these responsibilities could result in serious penalties, including:
Suspension: Your licence may be temporarily suspended if the Home Office suspects non-compliance or if an investigation is required.
Downgrading: Your licence can be downgraded from an A-rating to a B-rating if you are found to be in breach of sponsorship duties. This may limit your ability to issue new Certificates of Sponsorship (CoS) until compliance improvements are made.
Revocation: In cases of severe or repeated breaches, your UK Sponsor Licence may be revoked, meaning you would lose the ability to sponsor workers, and any current sponsored employees may have their visas curtailed, potentially leading to their removal from the UK.
Common Reasons for UK Sponsor Licence Revocation:
- Failing to keep accurate and up-to-date records of sponsored workers.
- Not reporting significant changes, such as sponsored employees not turning up for work or changes in business structure.
- Employing workers who do not meet visa or work eligibility requirements.
- Breaching immigration law or other legal obligations, such as employing workers illegally.
Maintaining compliance is essential to avoid these penalties, and regular internal audits of your HR and immigration processes are recommended to ensure adherence to Home Office requirements.
Most applications are processed within 8 weeks. There is also an option to pay an extra fee for a decision within 10 working days, although this service has limited availability. Plan your timeline for your Sponsor Licence Application 2025.
For small businesses and registered charities, the fee is £574. For medium and large businesses, the fee is £1,579. Understand the fees for your Sponsor Licence Application 2025.
A CoS is an electronic record that confirms a sponsoring employer is offering a specific job to a foreign national who meets the requirements for a particular visa route. The worker needs a CoS to apply for their visa. You’ll need this after your Sponsor Licence Application 2025 is approved.
Responsibilities include maintaining accurate records of sponsored employees, reporting significant changes to the Home Office, complying with UK immigration and employment laws, and being prepared for compliance visits. These duties follow your successful Sponsor Licence Application 2025.
Common reasons include inaccurate or misleading documents, incomplete applications, a history of previous licence revocation, and failure to provide requested information. Avoid these pitfalls in your Sponsor Licence Application 2025.
Key changes include the prohibition on passing fees to workers, increases in visa and CoS assignment fees, updates to the Immigration Salary List, and stricter rules for sponsoring care workers. Stay updated on these changes for your Sponsor Licence Application 2025.
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