Navigating the complexities of the UK immigration system can feel daunting, especially when you are focused on growing your business. We understand that a UK Sponsor Licence is a critical first step, but with so many rules and requirements, it is natural to have questions. This page is designed to give you clear, straightforward answers to the most common queries we receive. If you still have questions, we are here to help.
List of FAQ’s UK Sponsor Licences
A Sponsor Licence is permission granted by the UK Home Office that allows a UK-based business to legally hire skilled workers from outside the UK. Without this licence, companies cannot issue Certificates of Sponsorship (CoS) to foreign employees
You will need to provide some documents to prove active trading and adequate HR systems. These can be found in Home Office Appendix A and often include:
- Business bank statements
- Proof of premises
- VAT registration
- Recent PAYE returns
The Sponsor Licence fees depends on the business size and licence type:
- Small or charitable sponsors: £574
- Medium or large sponsors: £1,579 (as of 2025)
Additional costs may apply if you opt for priority processing or professional advisory support.
The SMS is the online platform where sponsors manage their licence. Through the SMS, you can:
- Assign Certificates of Sponsorship (CoS)
- Update employee and company details
- Report changes to UKVI
Level 1 User is the individual who can be authorized to administer your SMS, to issue CoS, and to administer day-to-day sponsor reporting. Businesses can appoint internal staff or outsource this function to qualified, OISC-regulated service providers for added compliance assurance.
The Authorising Officer is ultimately responsible, but daily duties fall to the Level 1 User and HR/compliance staff. Many businesses schedule quarterly internal reviews or outsourced audits to minimise the risk of suspension or revocation.
The Home Office may visit unannounced to review:
- HR files
- Right-to-work checks
- Record keeping
- Use of the SMS
- Preparation, internal audits, and compliance training greatly improve the chances of passing.
A Sponsor Licence allows you to employ skilled workers who meet the required skill and salary thresholds. Family members (dependants) must apply for their own dependant visas linked to the sponsored worker – they cannot be sponsored directly by the business. An employer may hire a family member as a worker, but only if they genuinely meet the role requirements and immigration rules.
Home Office guidance prohibits SMS users from assigning a Certificate of Sponsorship to themselves or to close relatives, so another authorised user must handle this. Non-compliance risks suspension or revocation of the licence.
Applications may be refused for several reasons, including missing or incorrect required documents , inadequate HR and compliance systems , a history of immigration breaches , or an inability to demonstrate genuine trading activity.
UK Sponsor Licence Rejection or Revocation
Understanding & Challenging Rejection or Revocation
The Home Office can suspend or revoke a Sponsor Licence if the business fails to meet its sponsorship duties – for example, inadequate HR systems, failure to report changes, or assigning Certificates of Sponsorship improperly.
Suspension or revocation can directly impact the immigration status of your sponsored workers, placing their visas at risk. Maintaining strong HR systems, carrying out regular audits, and ongoing compliance support is essential to safeguard your licence.
The standard processing time is 8–12 weeks. A priority service (limited slots) can reduce this to about 10 working days for an additional Home Office fee.
Still have questions?
Don’t let the complexities hold you back. Speak with our Sponsor Licence experts today to get tailored advice for your business. We are here to help you get the answers you need and build a compliant, prosperous future.
