Table of Content

An Essential Overview of the Sponsor Management System (SMS) for 2025

This article provides a strategic overview of the Sponsor Management System (SMS), the mandatory online portal for all UK sponsor licence holders. With compliance scrutiny from the Home Office expected to remain high throughout 2025, a thorough understanding of this system is not optional—it’s essential for business continuity. We will outline the critical sponsor duties and reporting obligations, ensuring you are prepared for the Home Office requirements Sponsor Management System 2025 and can maintain a perfect compliance record.

What is the Sponsor Management System (SMS)?

The Sponsor Management System (SMS) is the mandatory online portal provided by the Home Office for UK employers to manage their sponsor licence and the migrant workers they employ. It is the primary interface between your organisation and UK Visas and Immigration (UKVI).

Its primary functions include:

Assigning Certificates of Sponsorship (CoS)

Creating and assigning a CoS is the foundational step to enabling a migrant to apply for their work visa.

Reporting Worker and Business Changes

Notifying the Home Office of specific changes to a sponsored worker’s employment or your organisation’s structure.

Managing Your Sponsor Licence

Applying to renew your licence, adding new Level 1 or Level 2 users, and managing your yearly Certificate of Sponsorship (CoS) allocation.

Receiving Official Communications

Acting as the official communication channel for the Home Office to send you important updates and requests.

Key Home Office Requirements for SMS in 2025

Staying compliant requires a proactive approach to managing your duties through the SMS. The core obligations fall into three main categories. Meeting the Home Office requirements Sponsor Management System 2025 is non-negotiable for licence holders.

1. Record-Keeping Duties

While you maintain detailed HR files internally, the data accessible to the Home Office via your SMS usage must be accurate and consistent with these records. Key records you must keep for each sponsored worker include:

  • Up-to-date right-to-work check evidence.

  • Current contact details (address, phone number).

  • A history of their sponsored role, including job descriptions and salary details.

  • Records of attendance and absences.

  • Any other documents submitted as part of the visa application process.

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2. Reporting Duties

You have a legal obligation to report certain events and changes via the SMS. Failure to do so is one of the most common reasons for compliance action. Most changes must be reported within 10 working days of the event occurring.

Events that must be reported include:

  • A sponsored worker does not start their role on the expected date.

  • A sponsored worker is absent from work for more than 10 consecutive working days without permission.

  • A worker’s employment is terminated (due to resignation or dismissal).

  • There are significant changes to the job role, such as a promotion or a substantial change in duties or salary.

  • There are changes to your business, such as a change of address, a merger, or an acquisition.

3. Home Office Communication

This is a critical point that many sponsors overlook. The Home Office uses the SMS as its primary method to communicate directly with sponsor licence holders. They will post important messages, policy updates, requests for information, and notifications about your licence directly onto the system.

It is therefore essential for your Level 1 User to log in to the SMS regularly – ideally several times a week – to check for new messages. Missing a critical update or a request for evidence can lead to serious compliance issues.

Recognising the pressure this places on busy HR teams, Conroy Baker Ltd. can perform these regular checks for clients who opt for our compliance services. We ensure that no communication is missed and that any required actions are flagged to you immediately.

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Common SMS Mistakes & How to Avoid Them

Even with the best intentions, errors can happen. Being aware of common pitfalls is the first step to avoiding them.

Inaccurate Data Entry

A simple typo in a name or passport number can create significant issues.

Prevention: Implement a double-check system for all data entered into the SMS.

Late Reporting

Missing the 10-day reporting deadline is a serious breach.
Prevention: Create clear internal processes and calendar reminders for reporting duties when an event is triggered.

Inadequate Training

Key personnel (Level 1 and Level 2 users) who are not fully trained on their responsibilities pose a major risk.
Prevention: Invest in professional training for all SMS users.

Poor Record-Keeping

If your internal HR files don’t match the information reported on the SMS, you will likely fail a compliance audit.
Prevention: Ensure your internal record-keeping is robust and perfectly aligned with your SMS activity.

Home Office Compliance Visits & The Role of the SMS

The SMS is a primary tool for the Home Office when preparing for and conducting a sponsor compliance visit. Before an inspector arrives at your premises, they will have thoroughly reviewed your activity on the SMS. They will use this information as a baseline to audit your internal files and interview sponsored workers.

Any inconsistencies between what is recorded on the SMS and what they find in your HR files will be a major red flag. This is why diligent management that meets all Home Office requirements Sponsor Management System 2025 is your best defence against a negative audit outcome.

One of the main service of Conroy Baker Ltd.

UK Sponsor Licence Compliances – Ensuring Your Sponsor Licence Compliance

Why Choose Conroy Baker Ltd. for SMS Compliance

Navigating the complexities of sponsor licence compliance requires specialist expertise. As one of the Top UK Immigration & Business Advisors in the UK, Conroy Baker Ltd. provides comprehensive support to ensure your business remains compliant and protected.

Our services include:

Hands-on SMS Management

We can act as a Level 1 User on your licence, handling all day-to-day reporting and administrative duties on your behalf.

Expert Training

We provide tailored training for your HR staff and key personnel, empowering them to manage the SMS confidently and correctly.

Compliance Audits

We conduct mock audits to identify and rectify any potential issues before the Home Office does, giving you complete peace of mind.

Frequently Asked Questions (FAQ) for Sponsor Licence Holders in 2025

There is no official frequency mandated by the Home Office, but best practice in 2025 is for the designated Level 1 User to log in several times a week, if not daily. The SMS is the Home Office’s primary official communication channel with sponsors. They use it to post critical updates, request further information, and notify you of changes to your licence. Missing a message with a deadline can lead to immediate compliance issues.

Failing to meet the reporting deadline is one of the most serious compliance breaches. The consequences can be severe and escalate depending on the nature and frequency of the failure. They include:

  • Downgrading your licence to a B-rating, which prevents you from sponsoring new workers until you complete a costly action plan.

  • Suspension of your licence, meaning you cannot assign any new Certificates of Sponsorship (CoS).

  • Revocation of your licence, resulting in the loss of all sponsored workers whose visas would be curtailed.

  • Reputational damage and potential difficulties in obtaining a licence in the future.

It depends. You are not required to report a small, standard pay rise that is part of a company-wide increment or in line with inflation.

However, you must report a change in salary if it is due to a promotion or a significant change in job duties. This is done by adding a ‘sponsor note’ in the SMS. If the promotion is so significant that it moves the worker into a different Standard Occupational Classification (SOC) code, a new visa application with a new CoS will be required.

These roles have very different levels of authority and responsibility:

  • Level 1 User: This is the primary user who has full access to the SMS. They are responsible for all activity on the licence, including adding/removing other users, notifying the Home Office of any changes to the business, and withdrawing a CoS. Your organisation must always have at least one active Level 1 User who is a settled worker.

  • Level 2 User: This is a supplementary user with restricted access. They can assign CoS from the company’s allocation and report activity on the workers they have assigned, but they cannot access the broader licence management functions or see communications from the Home Office.

Yes, absolutely. Many businesses choose to outsource this function to a specialist immigration advisor, like Conroy Baker Ltd. An authorised external advisor can be set up as a Level 1 User on your licence to handle the day-to-day management, reporting, and communication checks on your behalf. This provides peace of mind, ensures expert oversight, and frees up your internal HR team to focus on their core duties.

No. The SMS is a reporting and management tool, not a document storage system. You use it to report key data points (e.g., a worker’s start date, salary, change in circumstances). You must, however, maintain the actual evidence—such as employment contracts, right-to-work checks, qualifications, and attendance records – in your own internal HR files. During a Home Office compliance audit, an inspector will cross-reference the information on the SMS with the detailed records you hold internally. Any discrepancy is a major red flag.

Do you have any questions related to SMS?

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CBL Business Solution Officers

Trusted by Clients. Recognized by Industry

Discover how we have made a difference in our clients’ immigration journeys.

Hemang Laaheru at Conroy Baker Ltd is an expert regarding Sponsor visa. He is knowledgable about the entire process and accessible even for families living abroad. This daunting step in moving from the US to the UK was eased by Mr. Laaheru, and the turn around time was top notch.
– David Ruffell – Sponsor visa

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Ready to Master Your Sponsor Management System (SMS)?

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Ensure your business is fully prepared to meet all Home Office requirements for the Sponsor Management System in 2025.

Contact Conroy Baker Ltd. today on +44 203 773 2948 or [email protected] to book a comprehensive compliance consultation and secure the future of your business.

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