Table of Content
Introduction: Mastering the SMS in 2025
For any UK business holding a Sponsor Licence, the Sponsor Management System (SMS) is the primary tool for meeting legal sponsorship obligations. It is the Home Office’s secure online portal through which licensed sponsors manage Certificates of Sponsorship (CoS), report changes, and maintain licence compliance.
Every interaction with the Home Office regarding sponsored workers is recorded in the SMS, making precision and consistency essential.
Conroy Baker Ltd. provides UK employers with comprehensive guidance to ensure SMS functions are performed correctly, safeguarding both sponsored hires and the Sponsor Licence.
What is the Sponsor Management System (SMS)?
The Sponsor Management System is the Home Office’s central platform for all sponsor-licence-related actions. It enables licensed employers to:
- Assign and manage Certificates of Sponsorship.
- Report organisational and worker changes.
- Update key personnel details.
- Renew and maintain their Sponsor Licence.
As every action within the SMS forms part of the employer’s compliance record, errors or omissions can have serious consequences – including delayed recruitment, licence downgrades, or revocation.
Core Functions of the SMS
1. Assigning Certificates of Sponsorship (CoS)
A CoS is essential for a Skilled Worker visa application to be submitted.
When assigning a CoS, the employer must ensure that:
- Personal details, job title, SOC code, salary, start date, and location exactly match the employment contract and supporting documents.
- All data is compliant with current UKVI salary thresholds and going rates.
Even a small inconsistency can lead to visa refusal.
2. Managing CoS Allocation
Each licensed employer is allocated a set number of CoS annually. If recruitment plans exceed this, an increase must be requested via the SMS.
Allocation management requires:
- Forecasting workforce needs.
- Providing a clear business case and evidence for allocation increases.
3. Reporting Changes and Significant Events
Employers have a legal obligation to report changes within 10 working days via the SMS, including:
- A sponsored worker failing to start as expected.
- Unauthorised absence of 10 or more consecutive days.
- Resignation, dismissal, or changes to job title, duties, salary, or work location.
- Changes to the organisation’s business address or structure.
4. Licence and Key Personnel Management
The SMS allows updates to key personnel roles – Authorising Officer, Key Contact, Level 1 Users and business contact details.
It is vital that:
- Appointed personnel are suitable and fully understand their responsibilities.
- All changes are reported promptly to the Home Office.
Compliance Duties Linked to SMS Use
Meticulous Record-Keeping
Employers must maintain a complete record of:
- All assigned CoS.
- All reported changes or events.
- Correspondence with UKVI via the SMS.
These records must be consistent with internal HR files, as Home Office audits will cross-reference them.
Adherence to Reporting Deadlines
All reportable changes must be submitted within the required timeframe. Missed deadlines are among the most common causes of compliance breaches.
Audit Readiness
Proactive internal audits should be conducted regularly to ensure SMS records and HR documentation meet Home Office requirements.
Compliance Duties Linked to SMS Use
- Late reporting of worker or organisational changes.
- Incorrect data entry, particularly with SOC codes, salaries, and job details.
- Untrained key personnel, leading to SMS errors.
- Inadequate record-keeping, relying solely on SMS entries without parallel HR files.
- Lack of proactive auditing, leaving errors undiscovered until a compliance visit.
How Conroy Baker Ltd. Supports Employers
SMS Training & Best Practices
Tailored training for Authorising Officers and Level 1 Users.
Compliance Audits
Regular checks to ensure SMS and HR files are aligned and error-free.
Reporting Assistance
Guidance on accurate and timely reporting of all required changes.
Strategic Management Advice
Integrating SMS processes into HR and recruitment workflows.
Defence Against Sanctions
Legal representation in the event of SMS-related compliance action.
Why Choose Conroy Baker Ltd. for Sponsor Management System (SMS) Compliance?
Mastering the Sponsor Management System (SMS) is essential for the long-term health of your UK Sponsor Licence. The technical and compliance aspects of the SMS can be complex, and errors can be costly.
As Top UK Immigration & Business Lawyers in the UK, Conroy Baker Ltd. offers a holistic and client-focused approach, combining unparalleled expertise to deliver outstanding immigration solutions.
Your UK Workforce. Expertly Sponsored.
Ready to Master Your Sponsor Management System (SMS)?
If you have questions about the Sponsor Management System (SMS) or require expert assistance with your compliance duties, our specialist Immigration Lawyers London are ready to provide support.
Please complete the form below to connect with our experts. A member of our Top UK Immigration & Business Lawyers in the UK team will contact you promptly to provide the dedicated guidance and strategic solutions you require to successfully manage your UK workforce.
You can contact us on +44 203 773 2948 or [email protected] to book a consultation.
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