For most types of skilled foreign workers, including Skilled Visa workers, to come to the UK and work for you, your company needs to have a legal sponsorship licence.

If you want to get a UK visa sponsorship license, you will need to apply to the Home Office and pay the fees.

The Home Office will only give a sponsor licence to a company that can show that both the jobs they are hiring for and the workers they want to support meet the requirements. The group also needs to have HR processes that meet the strict requirements for sponsorship compliance.

Sponsor licence guidance

There are a number of Home Office guidance documents that explain how to sponsor workers. These include Sponsorship: guidance for employers and educators, “Workers and Temporary Workers – guidance for sponsors part 1: apply for a licence,” “Sponsor a worker: sponsor guidance part 2,” and other documents that provide additional information.

It takes a lot of reading and putting together for employers to figure out what a sponsor licence lets them do, how to apply for one, and what sponsors are legally expected to do to follow the rules of the sponsor licence.

Before an employer can apply for a sponsor licence, they need to meet certain requirements. This guide will also show what they need to do once they have the licence.

We will talk about what the UK Visas & Immigration (UKVI) of the Home Office is looking for in an application for a support licence. Along with getting ready for the licence application, we also talk about how to actually send a sponsor licence application and what to do if the application is accepted, rejected, or refused.

The application form for a sponsor licence is only a small part of the process. We will also go over in detail other important parts of the process that companies might not know about but are very important for getting a sponsorship licence.

What is UK visa sponsorship?

Under the UK’s points-based immigration system, the main ways for people who don’t live in the UK to work there are through approved work visas like the ones below:

• Skilled Worker visa
• Global Business Mobility visas
• Health and Care Worker visa
• Temporary Worker visas

For each of these types of visas, you need a licenced company to sponsor you.

To hire people with either visa, the company must get a sponsorship licence from UK Visas & Immigration (UKVI), which is part of the Home Office and is in charge of UK immigration.

When a company gets a sponsorship licence, it can hire workers to work for it. People can’t be licenced as “sponsors”; only businesses can.

The Home Office counts on the sponsorship regime to stop people from working illegally and abusing the immigration system.

When you agree to get a sponsor licence, you are taking on some compliance duties and letting the Home Office look closely at your company.

The rules for funding are used to make sure that:

• The sponsor is meeting all of the compliance duties expected when sponsoring migrant workers.
• Sponsored workers meet the points requirements and are suitably qualified and skilled with the required language skills.
• The roles being sponsored meet the requirements for skill level, salary and genuineness.

Which type of sponsor licence?

If the responsibilities aren’t met, enforcement action can range from large fines to revocation of the licence. If this happens, your visa workers would lose their jobs and their visas would be revoked, forcing them to leave the country early.

There are two kinds of sponsor licences under the current system: one is for “Workers,” which includes skilled or long-term jobs, and the other is for “Temporary Workers,” which includes certain types of short-term jobs.

For the following lines, you need a “worker licence”:

• Skilled Worker visa
• GBM Senior or Specialist Worker visa (previously the Intra-company Transfer visa)
• Minister of Religion
• International Sportsperson

A ‘Temporary Worker’ sponsor licence is required to sponsor workers in the following routes for short periods:

• Scale-up Worker
• Creative Worker 
• Charity Worker 
• Religious Worker
• Government Authorised Exchange
• International Agreement
• Graduate Trainee (Global Business Mobility)
• Service Supplier (Global Business Mobility)
• UK Expansion Worker (Global Business Mobility) 
• Secondment Worker (Global Business Mobility)
• Seasonal Worker

This guide will mostly be about how to apply for a sponsor licence for skilled workers, but the main licence requirements and tasks are the same for all routes. If you have any questions about an application for a pass, please contact us.

Sponsor licence requirements

The application process is how the Home Office checks to see if the employer can meet the standards for eligibility and suitability. Applications for sponsorship will be looked at by a special team at the Home Office.

A sponsorship licence can be held by any size or type of company as long as it meets the requirements for the category or tier it is applying for.

If you don’t meet either of the admission or suitability requirements, your application will be turned down.

Eligibility criteria

1. The organisation is genuine and operating and/or trading lawfully in the UK. The group has to be a real business. Groups like limited companies need to register with Companies House.

The guidelines don’t say that the company has to have been in business for a certain amount of time, but there should be someone working at the organisation who lives in the UK and can talk to the Home Office about any questions about the application.

2. The organisation is based in the UK. Since there is no business or operating base in the UK, the application will be turned down. The group can still apply for a sponsor licence even if it doesn’t have a physical location in the UK and instead runs its business online. While it will need to show that it can meet its sponsor duties and responsibilities, it will also need to show that it is legally operating or trading in the UK.

Suitability criteria

UKVI will look to ensure a potential sponsor:

1. Is advertising a real job opening that meets the requirements for a skilled worker. It’s possible for the Home Office to ask for more information to make sure they understand the job and its responsibilities and to make sure the role exists. People will probably think the job opening isn’t real if the job description is too detailed to meet the skill level standards.
2. Has the human resources and hiring processes in place to allow it to meet the duties and responsibilities of the sponsor and show proof of that. The Home Office can check to see if the sponsor is following the rules by inspecting the site before or after the licence is issued.
3. “honest, trustworthy, and dependable” This means that the group, its owners, leaders, and key employees do not have any pending criminal charges.
4. Doesn’t pose a threat to immigration control, and there’s no proof that the group has broken the rules before.
5. If it applies, has the right planning permission or permission from the local planning authority for the type of business that will be run at the operating address.

Genuineness test 

You should think of the genuineness test as a business case. The Home Office will want to know why you need a support licence and a foreigner to fill the position.

The application will pass the genuiness test if you can give strong business reasons for why you need a licence and a certain job.

Anytime during the life of your sponsor licence, the genuineness test can be used. It can be used when your company applies for a sponsor licence, during a visit to make sure the licence is being followed, or when you ask for a Certificate of Sponsorship. In every case, the same conditions must be met.

When you hire foreign people, the genuineness test looks at the job(s) they will be doing and how they will fit into your company as a whole.

To get the foreign worker, you will have to show that there is always a “genuine vacancy” for the job. In other words, you need to show:

• The job must fit into the right category, which means it must be in one of the Standard Occupation Codes that the government has mentioned.
• That the job “fits” with your organisation, which means that it makes sense for a business in the same industry as yours to need that “kind” of role. In the case of a small restaurant that wants to hire an HR Manager, the Home Office might decide that an HR Manager is not the right job for a company with only 12 employees.
• If you already know the person you want to hire, make sure that their previous job or training “fits” with this new role. This means that you won’t be paying them an extra £10k a year to do the same job just to meet the salary standards of the category.

There is a chance that the Home Office will ask the company for more information or proof if they think that a job opening is not real. Because of this, employers will also need to make sure that job descriptions show the part correctly. If this proof is not sent within the time limit given, the application may be turned down.

If it seems likely that a job opening is not real, the person applying for the visa may also have to go through more checks. The Home Office may ask the applicant to provide more proof or information (usually within 28 days), or the applicant may be asked to come in for an interview. During the interview, the caseworker will evaluate the applicant’s knowledge of the role, relevant experience, knowledge of the sponsor in the UK, explanation of how they were hired, and any other information that is relevant.

The Home Office policy guidance says that this extra level of scrutiny is not needed most of the time, but that “high-risk” areas should get extra attention. Although there are no clear definitions of “high-risk sectors,” we think that any application involving carers or the hospitality business should be given more attention. Once the “genuineness” of the application is checked, the applicant’s past immigration background will also be looked at.

Sponsor licence duties

When you apply for a licence ahead of time, even if you don’t have a specific job in mind, the Home Office will still ask you a lot of the same questions about the kind of job you want to hire for in the future. They will also make the same decision about whether this job fits with the organisation as a whole.

When a group applies for a sponsorship licence, it promises to follow certain administrative duties that are meant to stop people from working illegally.

In essence, following through with the responsibilities makes sure that sponsors keep complete and up-to-date records that can be inspected at any time by the Home Office.

The Home Office checks the employer’s ability to do these things during the licence application process.

As stated in the Home Office’s Sponsor Guidance, the following are the duties:

• Record-keeping
• Monitoring & reporting
• Absence monitoring
• Notifying the Home Office of changes in circumstances

Record-keeping

Sponsors must keep records on their sponsored workers, including proof of their right to work in the UK, NI numbers (if applicable), and their contacts, both old and new.

The boss has to keep copies of the things listed in Appendix D, like:

• Passport
• Immigration status documents, including their period of leave to remain/stay in the UK)
• Biometric residence permit

The sponsor must also keep track of the contact information of the people they are paying, both keeping old contact information and setting up a way to find and update any new contact information.

All workers who are supported should also keep their job contracts. Employers should be aware that the Home Office may look over the contract terms to make sure they match the information on the Certificate of Sponsorship, especially when it comes to pay and job duties.

Effective right to work checks make sure that the boss doesn’t break the law against illegal working by checking documents in the right way and making sure that workers with temporary permission are subject to follow-up checks to make sure they still have the right to work.

People who don’t follow the rules for the right to work can be fined and have their rights taken away.

Monitoring & reporting

The employer must have systems and procedures in place to keep an eye on sponsored workers and must report within ten business days if the sponsored person:

• Doesn’t start work as planned
• Has been absent without permission for ten days in a row
• Has their contract ended faster than planned, for example because they quit?
• Moves from one type of immigration to another, like from a skilled worker visa to indefinite leave to stay (even though the Home Office should have a record of this).

The sponsor must also tell the Home Office if they have any good reason to think or have proof that the sponsored worker is breaking the rules for their stay in the UK.

Absence monitoring

The sponsor is responsible for making sure that all of the sponsored employee’s breaks are approved and recorded. This includes time off for illness, vacation, study leave, and trips abroad. There should be a good sick leave policy in place and followed by the company.

Notifying the Home Office of certain changes in circumstances

Key people who are mentioned on the sponsor licence must still work for or be hired by the sponsor. If there are any changes, the sponsor must let UKVI know through the SMS.

People who work for the group must let the Home Office know about any changes to their business address. If the Home Office wants to do an unannounced site inspection, they will need the right details to find the right place.

Details of UK branches are not kept in the SMS, but sponsors should keep separate records of any changes to the organization’s UK network, like when branches open or close, so it is clear which addresses are on the licence.

The same rule applies to branches, subsidiaries, and linked businesses that are located outside of the country. UKVI should be kept up to date every time a linked entity abroad opens or closes.

Immigration compliance audit

If the Home Office thinks that an organization’s HR processes are not good enough to do their job as a sponsor, they can refuse to give them a licence.

Before submitting the application to the Home Office, it is suggested that an internal check of current HR systems be carried out to find any problems or violations of the rules. These should then be fixed. To make sure compliance, it’s important to check not only the systems but also the practises and procedures at any physical addresses where the organization’s sponsored workers would do their work.

Which roles can be sponsored for a skilled worker visa?

The skilled worker pass can’t be used for every job.

There are minimum requirements for skills and salaries, and some niches and industries are not eligible.

Any role that is suggested to be sponsored must meet the requirements for sponsorship and get the 70 points needed for the visa route. This includes the following standards for skills, salary, and language:

Suitable skill level for sponsored workers

For most people to get the skilled worker visa, the job must be at least at Regulated Qualifications Framework (RQF) level 3 (equal to an A level).

The level of skill is much lower under the new system. This was done to make the change from EU free movement to a different system easier by letting more roles apply for the route.

How to match a role to the correct SOC code

The new Appendix Skilled worker lists the jobs that can be done through the skilled worker method. These jobs can be found by their Standard Occupational Classification (SOC) code and “related job titles.”

Along with the SOC code, the appendix has a short job description and some examples of tasks that should be done on the job. This is meant to help companies match roles with the right SOC code.

Also, job titles that copy the example tasks word-for-word can make people question whether the role is real and fits with the chosen SOC code.

It can help to use the ONS coding tool and look by job title if you aren’t sure which SOC code is right. Then, you can compare the SOC code to the code that came with the Home Office Appendix to make sure it is right.

After, you can check the RQF level that was given to the job to see if it meets the minimum level needed for the route.

It is enough if the person applying for the visa doesn’t have the minimum level of education but can show that they have relevant work experience. But if a visa candidate doesn’t have the right skills or experience, the Home Office is likely to turn down their application for a sponsorship licence and/or a worker’s visa because they don’t meet the “genuine vacancy” test.

Some jobs, like those on the Shortage Occupation List and some creative industry roles, don’t need to meet the skill level requirement.

Minimum salary thresholds for skilled workers

One of the most important conditions for sponsoring workers is that you must pay them more than a certain minimum amount.

Sadly for employers, this part of the licence is not easy to understand because different types of workers are subject to different minimum wage amounts.

Really, the threshold that applies will depend on the job part and whether the worker is a new hire or an experienced one.

The employer has to pay the higher of the “going rate” or the general minimum wage level that applies.

Every job has a going rate, which is different for each task.

There is a “general minimum threshold” for new entrants (workers under 26 years old at the time of their visa application), Student Visa to Skilled Worker switchers, and university “milk round” recruits. There is also a “general minimum threshold” for all other workers, who are called “experienced workers.” You compare the general minimum salary to the appropriate threshold salary. The more important number is the minimum wage you must pay a hired worker.

There are times when a lower minimum income is needed to get the 20 points. This would happen if the person has a STEM PhD that is relevant to the job or if the job is on the Shortage Occupation List.

New entrant transition into experienced worker

The guidelines say that a supported worker can only be seen as a “new entrant” for three years, no matter what their situation is.

If the worker “transitions” during the course of their job, sponsors should be ready for any future increases in the minimum wage.

Pro-rata hours when calculating minimum salary

Based on a 39-hour work week, the base standards are set. For people whose work hours are longer than this, the minimum wage will be based on a 39-hour work week, and this amount must be higher than the appropriate salary threshold.

If the person’s base pay does not meet the requirement, the application requirement will not have been met.

Sponsor licence management & compliance

Appointing key personnel

Who you choose to be your “key personnel” is another important thing to think about as you work on your application.

People who have a sponsor licence must choose people who will take on certain duties to handle the licence in line with Home Office guidelines. These people are called “key personnel.” These are the roles:

Authorising officer

The Authorising Officer (AO) should be a high-level employee of the company who is in charge of hiring and/or human resources. They should ideally be in charge of the HR processes, tools, and people who are managing and running the licence.

At any given time, there can only be one AO, and there must always be one in place. To make sure there is always someone to cover the AO if they leave the company, are sent abroad, or take a leave of absence like pregnancy or sabbatical, someone else will need to be hired for the job, even if it’s only for a short time.

Key contact

The Home Office will always get in touch with this person about the organization’s application and the licence. When the licence application is made, the information about the key contact must be given.

At any given time, only one key link can be chosen. You can name a legal agent as the main contact person. In many situations, this may be the best way to go so the legal representative can talk to the Home Office directly about the application.

Level 1 user

Daily management of the licence will be done by Level 1 users through the Sponsor Management System (SMS). At any given time, more than one level 1 person can be added, but it’s best not to add too many to make sure everyone is responsible. During the application process, the level 1 user must be an employee. Once the permission is given, it is possible to add more level 1 users, such as a legal representative.

Level 2 user

Level 2 users are given administrative jobs to do with the licence, just like level 1 users, but they have fewer rights than level 2 users.

Who to appoint as key personnel?

The licence application form needs to list the key personnel who will be working there.

For small businesses, it’s possible for the same person to have more than one job, but bigger businesses may choose to hire different people. Some people, like the main contact, will probably also be level 1 users most of the time.

There must always be at least one “settled worker” working for the sponsor. This is a worker who is not subject to immigration control and can stay in the UK for as long as they want.

According to the sponsor advice, the employer has to make sure that the people hired as key personnel meet the requirements for suitability. Each of the important people must:

Be based in the UK full-time for the length of their job.
Be a paid employee or an officer of the UK company. There are some exceptions, such as legal representatives being able to be put in charge of certain key personnel roles.
Not have a criminal record that hasn’t been expunged for a related immigration crime.

People who use SMS can’t support close family members like their spouse, partner, brother, sister, father, mother, etc.

Employers who are sponsored cannot be Level 1 users who can give sponsored workers Certificates of Sponsorship.

Every key employee will have to go through a criminal background check to see if they have a history of immigration crimes or sponsor licence violations.

Certificates of Sponsorship

What are Certificates of Sponsorship?

The Certificate of Sponsorship (CoS) is a reference number that a company who is sponsoring a worker sends to the worker via text message. The CoS is used to show the Home Office that all of the standards for the visa route have been met.

People who want to apply for a sponsored visa need to have a Certificate of Sponsorship.

Certificates of Sponsorship come in two types: those that are ‘Defined‘ and those that are ‘Undefined‘.

Defined Certificate of Sponsorship

If the potential employee is not in the UK and needs to apply for entry clearance, they will need to be given a clear COS. The sponsor must apply for the specified COS through SMS, giving specifics about the job and salary.

Undefined Certificate of Sponsorship

If the person wants to stay in the UK and apply for a skilled worker visa, the sponsor will give them an unspecified CoS from their annual allowance. If the company has used up all of their undefined CoS for the year, they can ask for more through the SMS. At this point, the Home Office says that requests will be processed within one day, unless there are more questions.

Assigning Certificates of Sponsorship

Sponsors will need to know the difference between the two types and make sure they give the worker the right one.

Forgetting to give the right type of CoS is against the rules, and you could be punished for it. Because of this, donors can’t give an undefined CoS where a defined CoS is needed or a defined CoS to a worker for a job that isn’t listed in the CoS application.

Once a person is given a CoS, they must use this reference number when they apply for a Home Office visa.

Any visa application made more than three months after the CoS allocation date may be turned down. The same is true if the application is made more than three months before the job start date listed on the CoS.

Applying for Certificates of Sponsorship

The UK group will have to say how many undefined CoS it needs in its sponsor licence application until April 5, which is the end of the CoS allocation year.

This means that if the licence is approved, you will also receive the CoS at the same time. This means that you can give the CoS to the person right away so that they can apply for their Home Office visa.

Employers should think about how many people they need to hire in the next 12 months and ask for a yearly allocation of CoS that will last them the whole year. If they need more CoS, they can send an SMS and ask for it.

Applying for Certificates of Sponsorship

The UK organisation will have to say how many undefined CoS it needs in its sponsor licence application until April 5, which is the end of the CoS allocation year.

This means that if the licence is approved, you will also receive the CoS at the same time. This means that you can give the CoS to the person right away so that they can apply for their Home Office visa.

Employers should think about how many people they need to hire in the next 12 months and ask for a yearly allocation of CoS that will last them the whole year. If they need more CoS, they can send an SMS and ask for it.

Recruiting sponsored roles

Should you hire people first or get the licence? The Home Office will only give out sponsorship licences if they are sure that there is a real job offer that meets the standards for a skilled worker visa. You can be more sure of this if there is a clear option and proof that they and the job they are applying for meet the requirements.

Applying for a sponsor licence

Completing the sponsorship licence application form

You can fill out the licence application form online through the Sponsorship Management System (SMS).

There aren’t many problems with this system, but it is old and programmes should save often so they don’t lose any data.

The following must be filled out on the form:

Name the type of pass you want to apply for and include your contact information.
Name the important people on the licence
Make a list of the supporting papers that will be sent.

To follow the rules, the form must be filled out with the help of a legal representative. However, someone from the group must “press the button” and send the application to the Home Office.

At this point, the fee for applying for a pass must be paid (see below for specifics on how much it costs).

After the fee is paid, a filing sheet will be made. The AO must sign this sheet and send it in with the bundle of supporting documents.

Documents required for a sponsor licence application 

It is very normal for employers to not follow the rules about supporting documents.

In Appendix A, you can find a list of the required papers and information that must be sent with an application for a sponsorship licence. At least four required papers must be sent to show that the group meets the requirements for eligibility, which means it is real and legally operating in the UK.

However, the rules are not clear, and it may be hard for employers to figure out what applies to their particular application.

Appendix A has a bunch of tables that the employer needs to look through to figure out what papers need to be sent with the application.

These things might be in the documents, but not always. It depends on the type of company and how long it has been in the UK.

The most recent official annual accounts
Certificate of employer risk insurance
Proof of VAT registration and the most recent bank record for a business
HMRC proof of registration, such as a PAYE number and an accounts office reference number
Proof that you own or have a professional lease for the business space

There are a minimum of four documents that need to be sent, but it can be helpful to give more information if the Home Office might have worries about any of them.

Additional supporting documents

As well as the four pieces of documentation, employers must also:

• Explain why they are making an application for a sponsor licence
• Specify the industry they are operating in
• State their weekday opening and operating hours
• Submit a current hierarchy chart detailing all owners, directors and board members
• Submit a list of the names and job titles of all employees, if the organisation has 50 employees or fewer
• Specify the names of everyone who has access to the email address supplied with the online sponsor licence application
• Provide a contact (landline) telephone number

This information would usually be submitted within a covering letter.

In addition to the mandatory documentary evidence in relation to the organisation, if a skilled worker is being hired the organisation will also need to provide specific information relating to the role(s) to be sponsored. This includes:

• The job title and Standard Occupational Classification (SOC) Code for the role.
• A job description detailing the duties of the role
• Details of the skills, experience and qualifications required to perform the role.
• The guaranteed salary if the job were vacant at the date of the sponsor licence application.
• Details of where the role sits on the organisational hierarchy chart. The organisation must indicate which jobs are currently vacant and for which it intends to assign a Certificate of Sponsorship.

Submitting the supporting documents

Supporting papers must be sent to the Home Office no later than five days after the application is sent via SMS. There is not much time left to look over Appendix A, figure out which tables and papers are important, and gather all the information that is needed.

For this reason, employers are told to get their supporting documents ready before the application form is turned in and the 5-day limit starts.

In reality, it can take organisations a few weeks to gather all the necessary paperwork. This adds time to the process of getting the sponsor licence, but it also avoids problems and the possibility of being turned down if there are mistakes in the supporting papers.

Submitting the licence application form

The AO should only accept the online sponsor licence application form if it is sure that the UK company has all the systems it needs to do its job as a sponsor and that all the supporting documents are ready to be sent.

The Authorising Officer (AO) is the only person who can send in the online support licence application form after it has been filled out. Legal agents can help the AO fill out the draught online application form, but they can’t send it in.

The AO should make a copy of the submission sheet that is made when the application is sent in, since it can’t be made again after the application has been closed.

For the UK organization’s sponsor records, a copy of the online sponsor licence application that has been filled out and sent in should be kept.

Apply by head office or individual branches?

If an employer needs a licence for a network of UK-based businesses, they can do one of several things:

• There is one sponsor licence for the main office and all of the UK sites.
• There is only one sponsor licence for the main office and some UK sites.
• It is being asked for different sponsor licences by the main office and each UK branch.
• Putting together several UK branches under one sponsor licence, for example based on area.

The method that is taken will depend a lot on what is practical. If a company has several offices in the UK, it will be easier and take less time to manage to apply for just one licence. If the Home Office does take action, though, it will damage the whole network. While individual licences are more likely to lead to an investigation into other parts of the network, they will not automatically lead to sanctions.

How long does it take to get a sponsor licence?

Steps must be taken in the right order to get a sponsorship licence. Timing is very important to make sure you follow the steps properly.

Knowing how long it takes to process can also help you plan your recruits.

If you are asking for your first licence, it could take up to eight weeks for the application to be processed. Processing times can usually be cut down if the application is complete and correct, but decisions on licence applications will usually not come any faster than 4 to 6 weeks.

If people who want to get a licence pay an extra £500, they can get a result on their application within ten working days through the priority application service. This service can be helpful for employers who don’t want to lose a candidate because the process takes too long.

Some things that can change working times are:

Factors which can affect processing times include:

• Pre-licence compliance visit: Employers should be given two weeks’ notice of the date of the review by the Home Office if they choose to do one on-site. The application may not move forward for another six to eight weeks while the inspection report is being made. Smaller businesses and groups that the Home Office considers to be “high risk” are more likely to have pre-license visits.
• Supporting documents: As we said above, the rules for sending in supporting papers are strict, and there is a lot of room for error. Depending on the type of company applying, certain documents must be sent along with certified copies that are made in the correct way. The papers must also be mailed to the Home Office within five business days of the online application form being sent. The application will be turned down if it doesn’t.
• Availability of key personnel: Within five working days of submitting the online application form, the designated Authorising Officer must be present to sign the submission sheet that will be sent with the supporting documents to the Home Office. This rule has been temporarily loosened in response to the pandemic.
• Processing of sponsored worker’s application: The worker has three months to apply for a visa to the Home Office after getting the licence and being given the COS. The handling of this application by the Home Office will also need to be taken into account when deciding when the job will begin. If you use the priority service, you can get a decision on your abroad application up to five working days after the visa interview, or up to three weeks after the interview. It can take up to eight weeks after the BRP meeting to get a visa if the application is made in the UK. Priority service and super priority services offer faster processing in 5 working days and the next working day, respectively. However, these services may not be available because of limits on service during the pandemic.

How much does a sponsorship licence application cost?

The AO will have to pay the right sponsor licence application fee as part of the online filing process.

How much it costs to get a sponsor licence will depend on the kind of company and how big it is. I read it from DavidsonMorris.com website:

• ‘Small’ business sponsor licence fee £536: If the UK organisation has charitable status or is subject to the small companies regime per sections 381 – 384 of the Companies Act 2006. A company will usually qualify as a small company if it meets two of the following criteria in its financial year:
  • A turnover of not more than £10.2 million.
  • A balance sheet total of not more than £5.1 million.
  • It employs no more than 50 employees.
• Large sponsor licence fee £1,476: This will apply to any organisation that does not meet the criteria for, or is exempt from, the small company regime.

The sponsor licence application also carries a number of other related charges and fees:

• Assigning the CoS – £199 per certificate
• Immigration Skills Charge – £1000 per year, per worker, or a reduced rate of £364 for smaller companies & charities
• Fees for the sponsored worker’s visa application

Pre-licence compliance visit

Before making a decision on an application for a support licence, the Home Office can do a compliance visit. The inspections are used to see if the applicant can meet the standards for suitability.

During the visit, officials from the Home Office will want to look at the company’s HR processes and may ask to see documents about the sponsored workers. They will also want to talk to the Authorising Officer and can talk to supported workers to make sure the job is real.

Candidates aren’t always told about the checks ahead of time, so it’s best to get ready for them before sending in the licence application. If the Home Office decides to do a pre-licensing visit, you will know how to do well on the check.

If problems are found during the check, the application may be turned down.

Preparing for a Home Office inspection

If you’ve been told that the Home Office is going to come to your building to do a compliance check, the following things are very important to get ready:

• Make sure that all of the information on the licence application form and SMS is right and complete.
• Make sure that everyone who is hired as a key person meets the qualifications and is trained on their tasks and roles.
• The AO should be ready to be questioned by officials and should be able to give a full and thorough account of the organization’s compliance systems and procedures.
• Do a practise compliance check to make sure you’re following the rules and find any problems that need to be fixed.
• Have the necessary papers ready to be looked at.
• Be helpful, polite, and friendly with the compliance officers.
• Writing down the questions and answers is important. You can also ask for a copy of the notes that the compliance officers took.

Sanctions for non-compliance

The sponsor licence tasks are always on the minds of licence holders.

If the Home Office is not sure that the tasks can be met during the pre-licensing stage, the application will be turned down.

If the licence is given, the Home Office can check up on donors whenever they want, without warning. If the Home Office finds that the sponsor has broken the rules, they can take action against them by putting in place a sponsor action plan, lowering the sponsor’s licence, stopping the licence, or even taking away the licence.

While your licence is suspended, the sponsored workers can still work for you, but you won’t be able to give a certificate of sponsorship to a new employee. You also have 20 days to tell the Home Office why the licence should be restored. This will need a lot of planning to gather proof and come up with a plan for correction in time. Then, if there were serious violations, the Home Office can decide whether to reinstate the pass, lower its level, or take it away.

If a licence is revoked, it will seriously mess up activities. Your sponsored workers’ visas will be limited, so you will no longer be able to legally hire them. They will have to find new sponsors or leave the country within strict time limits.

Most of the time, the group will have to wait at least a year before they can apply for a new licence.

While it is not possible to review a decision to take away a licence, there are times when it may be possible to do so through the Judicial Review process. We have a lot of experience with Judicial Review procedures and know how to keep them from happening and find better ways to work things out with the Home Office.

If tasks under the regime for preventing illegal working have been broken, this can lead to punishments that affect the sponsorship licence and a fine of up to £20,000 per illegal worker.

Home Office decision

The Home Office will send the group an email with their choice. If the employer is approved, they will be put to the UK’s list of registered licenced sponsors.

For example, the letter of notification will also confirm the amount of CoS that were given out and the Level 1 user’s user ID.

The AO should send the Level 1 user the user ID. The Level 1 user will then be sent a different password to access and use the SMS.

Sponsors should keep the password and user ID separate and safe, and only the named Level 1 user should use these details to access the system.

How long is a sponsor licence valid for?

A sponsor license is valid for four years from the date it is issued. It’s not easy for licences to renew. Instead, the group must apply to renew their licence before their old one expires so that there are no problems with the validity of the visas of the people they are sponsoring.

For the renewal application, all that needs to be done is for the AO to send an SMS with the request and the fee. However, the whole process of renewing is more difficult than the original application process in many ways.

The Home Office will be able to look at SMS and other paperwork from the last four years to make sure that the licence tasks have been met.

If there hasn’t been a compliance visit to the group in the four years it has had its licence, you should get ready for the Home Office to come and do an inspection before renewing the licence.

So, before applying to refresh, it will be important to make sure the licence is complete and the SMS is up to date.

If your sponsor licence application is refused or rejected

Employers will be very upset and disappointed if a licence application is refused. Even though they put a lot of time and effort into the application process, they can’t move forward with their hiring plans until they get a licence. If they lose a candidate who is waiting for their Certificate of Sponsorship, it would be a shame.

What you can do after an application fails will depend on why it failed. The choice letter from the Home Office will be the main source of information.

If the application was turned down, it means that the application itself is flawed. Caseworkers may not be able to make a choice based on the information they have been given, such as because the supporting documents are missing or wrong. You don’t have to wait to make a new application if the first one is turned down. But it will be important to make sure that the new application fixes the problems with the old one.

There may be a time limit of at least six months after the application was turned down before you can try again.

This is because most of the time, a refusal means that you did not meet any of the standards for a sponsorship licence. For instance, the application will be turned down if the company doesn’t work in the UK or if the job doesn’t pay at least the minimum amount.

Need professional help with your application for a sponsor licence?

My name is Atty Lindoven Magsino, BSc, MBA, GDL, LLM, DBA (candidate). I am a Solicitor at MBM Solicitors, 83A First Floor, South Road, Southall, UB1 1SQ, England, United Kingdom. Telephone: 02035002141. Fax 02085710811. Mobile: 07446 888 377. Email: don@mbmsolicitors.com or attydonmagsino@gmail.com.