Introduction

Skilled Worker Sponsor Licence renewal is not just an administrative task, it’s a legal requirement that ensures your business can continue employing non-UK nationals. As part of the UK’s points-based immigration system, businesses must maintain a valid sponsor licence to sponsor Skilled Workers.

The Home Office requires all sponsor licence holders to renew their licence every four years. If you fail to renew on time or do not meet the necessary compliance obligations, you risk losing your sponsorship rights—which could lead to serious operational disruption, staff losses, and reputational damage.

Axis Solicitors has helped hundreds of UK businesses successfully navigate sponsor licence renewals. In this comprehensive guide, we’ll walk you through:

• When and how to apply for renewal
• What documents you need
• How to maintain ongoing compliance
• What to do if your renewal is refused
• And how expert legal support can reduce your risk

When to Renew Your Sponsor Licence

The UK Home Office issues sponsor licences for an initial period of four years. If your organisation wishes to continue sponsoring Skilled Workers beyond this period, it must renew the licence before the expiry date. Failing to do so can have serious consequences, including the loss of sponsorship rights and immigration status for sponsored employees.

Renewal Timeline

• You may submit a renewal application no earlier than 90 days before your sponsor licence is due to expire.
• If you do not renew your licence in time, it will automatically lapse, and your organisation will no longer be authorised to sponsor migrant workers.
• This may result in your existing sponsored workers losing their right to work in the UK, potentially leading to forced termination of employment or removal from the UK.

Applying early within the permitted window helps reduce the risk of disruption caused by Home Office delays or unexpected compliance issues.

How to Renew a Skilled Worker Sponsor Licence

Renewing your Skilled Worker Sponsor Licence is a critical step that ensures your business can continue sponsoring overseas workers without disruption. The process is conducted through the Home Office’s online Sponsor Management System (SMS) and involves multiple steps. Accuracy and compliance are key at this stage, as any discrepancies could result in delays or refusals.

Step-by-Step Renewal Process

1. Access the Sponsor Management System (SMS):

• Only a Level 1 User can submit a renewal application.
• Log into the SMS and navigate to the licence summary section to find the renewal option.

2. Submit the Online Renewal Form:

• Fill in the required details within the SMS.
• Ensure all information, including your organisation’s contact details, size, structure, and compliance history, is up to date.

3. Pay the Sponsor Licence Renewal Fee:

• The fee depends on the size and type of your organisation:
  • Small or charitable sponsors: £536
  • Medium or large sponsors: £1,476

4. Upload Supporting Documents (if requested):

• While not always required, the Home Office may request updated documentation during the renewal process, particularly if:
  • There have been structural changes in your business.
  • The Home Office has compliance concerns.
  • You’ve not had a compliance audit in several years.

5. Await Decision:

• Most renewal decisions are made within 8 weeks, but this can vary.
• The Home Office may conduct a compliance visit before granting renewal.

Documents Required for Sponsor Licence Renewal

When renewing your Skilled Worker Sponsor Licence, it’s essential to be ready with the correct documentation—even if the Home Office does not always request supporting evidence upfront. Having your records organised and accessible shows a proactive approach to compliance and helps avoid delays if further scrutiny is applied.

Core Documents to Have on Hand

Here’s a list of the most commonly requested documents during a renewal:

• Evidence of registration with a regulatory body (if applicable)
  • For example, care providers must be registered with the Care Quality Commission (CQC).
• Latest set of audited or unaudited financial accounts
  • These provide insight into the financial health of your organisation.
• HMRC registration documents
  • Including PAYE and VAT registration, if relevant.
• Proof of business premises
  • Lease agreements or ownership documents.
• Staffing structure
  • An up-to-date organisational chart detailing the sponsor management team and reporting lines.
• Contracts or service agreements
  • To show ongoing business activity, particularly if you’re operating in sectors such as construction, hospitality, or healthcare.
• Record of current sponsored workers
  • Including start dates, job titles, salaries, and Certificates of Sponsorship (CoS) numbers.

Optional but Recommended

• Internal HR policies
  • Especially those concerning recruitment, right to work checks, absence monitoring, and record-keeping.
• Recent payslips for sponsored workers
  • This helps verify that the salary stated on their CoS matches what they are being paid.

When Are These Documents Requested?

• If the Home Office has any concerns about your compliance history.
• If there have been material changes to your business.
• If a compliance visit is scheduled or triggered during your renewal review.

Common Reasons for Renewal Refusal or Delay

Even if your business has been operating smoothly, the Home Office takes sponsor licence renewals seriously. Many sponsors assume the renewal is a formality—it isn’t. Failure to meet the required standards can lead to delays, suspension, or even refusal. Understanding common pitfalls helps avoid costly disruptions.

1. Non-Compliance with Sponsor Duties

The most frequent reason for refusal or delay is a sponsor’s failure to comply with ongoing responsibilities, such as:

• Not conducting right to work checks properly or consistently.
• Failure to report changes in migrant circumstances.
• Inaccurate or incomplete record-keeping.

2. Unannounced Compliance Visits and Poor Outcomes

The Home Office may carry out compliance visits as part of the renewal process. If your systems are found lacking—such as missing HR files or inconsistent information between systems, you risk suspension or refusal.

3. Incorrect Use of Certificates of Sponsorship (CoS)

Errors include:

• Assigning CoS for roles that don’t meet the skill or salary threshold.
• Repeatedly assigning CoS to candidates who don’t meet visa criteria.
• Failing to justify why a CoS was issued.

4. Changes in Business Circumstances Not Reported

If your company has undergone any of the following and failed to inform the Home Office, this could jeopardise your renewal:

• Company name change or restructuring
• Merger, acquisition, or sale
• Change of directors or key personnel in the Sponsor Management System (SMS)

5. Expired or Invalid Supporting Documents

Licences can be refused or delayed if:

• Your regulatory registration (e.g., CQC, FCA) has lapsed.
• Financial documents are outdated or not filed.
• Premises details are inconsistent with what’s on record.

6. Misalignment Between CoS and Actual Role

If the job title, responsibilities, or salary stated in the CoS don’t match the actual employment situation, the Home Office may treat it as deception or non-compliance.

To Avoid any mistakes during your sponsor licence renewal process we at Axis Solicitors always recommend to use our expert guidance to your legal problems.

How to Prepare for a Smooth Licence Renewal

Renewing your Skilled Worker Sponsor Licence is far more than a simple administrative task. It requires careful preparation and proactive compliance. Here’s how to ensure your renewal process runs smoothly and avoids unnecessary delays or refusals.

1. Start Early

Don’t wait until the last moment. The earliest you can apply is three months before your licence expires, and it’s wise to use that window. This gives you time to fix any issues and ensure your internal records are up to date.

2. Conduct a Self-Audit

Before submitting your application, perform a thorough internal review. This should include:

• HR and right-to-work records for all sponsored workers
• Contractual documents, such as offer letters and employment contracts
• Proof of salary payments, including payslips and bank transfers
• Evidence of absences being tracked and reported where necessary

Consider using a checklist or seeking help from a solicitor to carry out this audit professionally.

3. Update the Sponsor Management System (SMS)

Make sure all sponsor details are up to date:

• Authorising Officer, Key Contact, and Level 1 User details should be correct
• Any changes in business premises, names, or structure should be recorded
• Make sure Certificate of Sponsorship (CoS) usage is accurately logged

Any outdated or incorrect information in SMS could lead to scrutiny or even a refusal.

4. Review Assigned CoS Usage

Go back and check every CoS you’ve issued over the past few years:

• Was it assigned correctly?
• Did the worker meet the visa requirements?
• Is there a trail of supporting documentation?

This ensures you won’t be caught out by discrepancies if the Home Office reviews your past CoS history.

5. Ensure Continued Eligibility

Your organisation must still meet the same eligibility requirements as when you first applied. Confirm:

• Your business is still operating lawfully in the UK
• You’re registered with any relevant regulatory bodies
• You have suitable HR systems in place to manage sponsored workers
• You are not under investigation by any regulatory or governmental body

6. Prepare for a Compliance Visit

Even if not explicitly stated, it’s possible the Home Office may conduct a visit as part of their decision-making process. Prepare by:

• Ensuring physical and digital HR files are in order
• Training staff on right-to-work checks and sponsor duties
• Having someone available who understands the sponsor system and responsibilities

7. Submit an Accurate and Complete Application

When you are ready to apply:

• Pay the correct renewal fee based on your organisation’s size
• Double-check every form entry before submitting
• Ensure you’re applying within the correct timeframe
• Upload any requested documents promptly

The application process for Sponsor licence renewal can be troublesome and confusing. For that Axis Solicitors is here to provide you with the right guidance from our legal experts, ensuring a seamless experience.

Common Mistakes to Avoid During Renewal

Even well-established sponsors can face issues during the renewal process. Many licence renewal refusals are due to avoidable mistakes. Here are the most common pitfalls to steer clear of—and how to avoid them.

1. Missing the Renewal Deadline

This is one of the most damaging errors. If you fail to submit your renewal application before the expiry date:

• Your sponsor licence will expire automatically
• You will lose the right to sponsor skilled workers
• Sponsored employees may have their visas curtailed

2. Inaccurate or Outdated SMS Records

Outdated or incorrect information in the Sponsor Management System is a red flag. Home Office officials use SMS data to assess your compliance.

Common issues include:

• Incorrect contact information for key personnel
• Listing staff who no longer work for the company
• Failure to record changes of business address or ownership

3. Poor HR Record Keeping

Failing to maintain adequate HR systems is one of the top reasons for sponsor licence revocation. During renewal, UKVI may request evidence of:

• Right-to-work checks
• Absence monitoring
• Contact details and up-to-date addresses for sponsored workers

4. Assigning CoS Improperly

Improper use or misrepresentation of Certificates of Sponsorship (CoS) can severely damage your credibility. For example:

• Assigning a CoS to a worker who doesn’t meet Skilled Worker criteria
• Misrepresenting job roles or salary levels
• Repeatedly assigning CoS for roles not genuinely needed

5. Failure to Report Changes

If you’ve failed to notify UKVI of significant changes in your business, your renewal may be rejected.

Changes that must be reported include:

• Mergers, acquisitions, or de-mergers
• Changes to business name or structure
• New branches or trading locations

6. Neglecting Compliance Responsibilities

The Home Office expects sponsors to understand and fulfil their responsibilities. You can’t plead ignorance. Failing to:

• Notify UKVI of visa refusals or worker departures
• Monitor visa expiry dates
• Prevent illegal working

If you wish to have a smooth and errorless Sponsor licence renewal done then contact Axis Solicitors today.

Frequently Asked Questions (FAQs)

1. When should I start my sponsor licence renewal process?

It’s highly recommended to start preparing at least 3 months before the expiry date of your current licence. The Home Office allows renewal submissions within 90 days before expiry, but waiting until the last minute can be risky. Early preparation gives your business enough time to:

• Review and update sponsor records in the SMS (Sponsor Management System)
• Address any compliance issues
• Collect necessary documents
• Seek legal support if your HR or compliance systems need improvements

Delays or mistakes can result in your licence expiring before the renewal is processed, causing major operational disruption..

2. How long does it take to renew a Skilled Worker sponsor licence?

Most renewal applications are processed within 8 weeks, but delays can occur if the Home Office needs to conduct compliance checks or request additional documents. You cannot assign new Certificates of Sponsorship if your licence expires while the renewal is still pending.

3. Can I still sponsor workers during the renewal process?

Yes, as long as your licence is still valid at the time of application submission, you can continue to sponsor existing workers. However, you will not be able to assign new CoS after the licence expiry date unless your renewal is approved.

4. What happens if I miss the renewal deadline?

If you fail to renew your licence before its expiry:

• Your licence will be removed from the register of licensed sponsors
• You will lose the legal authority to sponsor workers
• Any migrant workers under your sponsorship could have their visas curtailed (cut short), possibly forcing them to leave the UK
• You will need to submit a new sponsor licence application, which involves more time, scrutiny, and additional costs

5. Do I need to pay again for the renewal application?

Yes. Renewal fees are the same as new licence fees and depend on your organisation’s size:

• Small sponsors: £536
• Medium or large sponsors: £1,476

These fees are payable when submitting the online application.

6. Will there be a Home Office visit during renewal?

A compliance visit is not mandatory during every renewal, but the Home Office may choose to conduct one based on:

• Your business’s compliance history
• Any changes in the size or scope of your operations
• A random sampling basis
• Concerns raised during your renewal application (e.g. discrepancies, outdated SMS information)

During a visit, UKVI officers will inspect HR systems, review files of sponsored workers, and assess whether your organisation is fulfilling its duties.

7. Can I appeal a refused sponsor licence renewal?

There is no right of appeal for sponsor licence refusals. However, you may:

• Request a review if the refusal was based on a factual error
• Submit a fresh application with all required improvements

Legal advice is highly recommended if your licence renewal is refused.

8. What are common reasons for a renewal refusal?

Sponsor licence renewal applications are usually refused due to non-compliance or failure to meet basic requirements. Common reasons include:

• Poor or non-existent record-keeping
• Inadequate HR systems or lack of internal checks
• Failure to update details in the SMS (e.g. Key Personnel, business address)
• Breach of sponsor duties, such as not reporting migrant absences or visa changes
• Unresolved issues from previous audits or warnings
• Lack of evidence showing genuine business activity or trading

Renewal refusals are serious and can trigger Home Office enforcement actions. Prevention through proper preparation is key.

9. What documents are required for sponsor licence renewal?

The exact documents required may vary depending on the nature of your business and the type of licence held. Commonly requested documents include:

• Proof of ongoing trading (bank statements, VAT registration certificate, recent accounts)
• PAYE registration and HMRC reference numbers
• Contracts of employment for sponsored workers
• Organisational structure chart
• Company policies on absence, discipline, and grievance procedures
• Evidence of right-to-work checks
• Updated list of sponsored workers with full employment details

Keeping these documents ready and up to date ensures a smooth and speedy renewal process.

Need Help with Your Sponsor Licence Renewal?

If you’re unsure about any part of the sponsor licence renewal process—or want to ensure your application is as strong as possible—Axis Solicitors is here to help. Our immigration solicitors are experts in UK sponsor licence law and have supported hundreds of employers in successfully renewing their licences.

Contact us today for a consultation and ensure your business remains fully compliant and able to employ skilled overseas talent without disruption.