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Table of Contents
Who Holds a Sponsor Licence?
A sponsor licence is held by UK-based organisations (both businesses and charities) that wish to employ skilled workers from overseas under the points-based immigration system. Holding this licence allows them to legally sponsor non-UK nationals for work roles that meet the Home Office’s eligibility requirements.
Common Sponsor Licence Holders Include:
- Private companies hiring Skilled Workers or Senior/Specialist Workers
- Educational institutions sponsoring international students or education professionals
- Charities and non-profits bringing in workers under specific temporary routes
- Healthcare providers, including NHS trusts and care homes, recruiting medical and care staff
- Tech firms, construction companies, financial services, and others facing domestic skill shortages
To hold and maintain a licence, an organisation must demonstrate that it has a genuine need for the role, proper HR systems, and a solid history of compliance with immigration laws.
If you’re unsure whether your business is eligible, check out our Sponsor Licence Guidance for UK businesses.
What Exactly Has Changed with the Sponsor Licence?
The UK sponsor licence has undergone a major overhaul. Let’s break down exactly what’s changed, who it affects, and what you still need to stay on top of.
Before April 6, 2024: The Old System
Under the previous rules, sponsor licences were only valid for four years. To continue sponsoring workers beyond that, you had to:
- Submit a formal sponsor licence renewal application before your licence expired
- Pay the required sponsor licence renewal fee (ranging from £536 to £1,476 depending on your organisation size)
- Wait several weeks for approval, as the Tier 2 sponsor licence renewal processing time could vary depending on case complexity
- Risk disruption or suspension if you missed the deadline or failed to meet compliance requirements
After April 6, 2024: The New System
As of April 2024, things have become much simpler for most UK sponsors:
- Licences that were valid on or after 6 April 2024 are now automatically extended for 10 years
- No renewal application or renewal fee is needed
- Your sponsorship duties continue as usual, but with heightened compliance monitoring
Who Does This Affect?
This change mainly benefits employers sponsoring under the following routes:
- Skilled Worker
- Senior or Specialist Worker
- Graduate Trainee
- Seasonal Worker
- Creative Worker
In short, if your sponsor licence falls under a Worker or Temporary Worker route, you likely qualify for the 10-year automatic extension.
Are There Any Exceptions?
Yes, a few categories still have different rules. If you’re operating under one of these routes, the standard 10-year extension does not apply:
- UK Expansion Worker route: Licence valid for two years
- Scale-up route: Licence valid for four years, with no renewal after that unless switching to another sponsor licence type
Shifting Focus to Ongoing Compliance
Now that the Home Office is no longer busy reviewing renewal applications, they’ve intensified their focus on sponsor compliance.
That means surprise audits, document checks, and closer scrutiny of your day-to-day sponsorship activities are more likely than ever.
The consequences of slipping up can be severe. You could still face licence suspension or revocation. No warning, no grace period.
Got your sponsor licence suspended? Don’t panic. Read our guide on what your next steps should be.
Your Core Duties as a Sponsor
To keep your sponsor licence in good standing, you must stay on top of your ongoing responsibilities. Here’s a quick checklist:
- Right to Work checks must be accurate and up to date
- Keep your sponsorship management system (SMS) updated, especially if your organisation’s structure, address, or key personnel changes
- Report changes in your sponsored workers’ circumstances (job role, salary, absences) within the required timeframes
- Retain clear records of all sponsored employees and relevant documents
- Respond promptly to any Home Office communications or site visit requests
You’re still trusted with the privilege of hiring overseas talent. Now, without routine renewals, that trust is monitored more closely through compliance checks, not paperwork.
Step-by-Step Guide to Flawless Sponsor Licence Compliance
Now that sponsor licence renewal is no longer your primary concern, your energy should go into building a rock-solid compliance framework. Here’s your step-by-step guide to staying on the right side of the Home Office and keeping your licence safe.
Step 1: Master the Sponsorship Management System (SMS)
The Sponsorship Management System (SMS) is your digital lifeline. Everything from reporting changes to managing sponsored workers happens here. It’s essential that your key personnel know how to use it properly.
Keep this information up to date:
- Job title and duties
- Work location
- Salary changes
- Start dates and delays
- Any changes in the worker’s immigration status
Step 2: Fortify Your HR Systems
Strong HR processes are your first line of defence in compliance.
Here’s what you need to track and retain for every foreign worker:
- Copy of passport and visa (BRP)
- Right to Work check evidence
- Contact details (phone, address, email)
- Employment contract
- Absence records and performance reviews
- Expiry dates for visas and leave to remain
Use reliable systems or reminders to flag upcoming expiry dates. Accidentally employing someone with an expired visa could have serious consequences.
Step 3: Be Prepared for UKVI Compliance Checks
UK Visas and Immigration (UKVI) can conduct compliance visits at any time. These inspections might be announced—or not. Their goal? To ensure you’re playing by the rules.
What they’ll look for:
- Whether you’re following your sponsor duties
- Accuracy of your SMS data
- Proper documentation for each migrant worker
- Evidence of right-to-work checks
- Staff awareness of reporting procedures
Pro tips:
- Train your staff on sponsorship duties
- Have a “compliance folder” with key documents ready
- Do mock audits regularly
If you fail a check, your licence can be downgraded or even revoked.
Step 4: Understand Your Reporting Responsibilities
Sponsors must inform the Home Office of key events within specific timeframes—usually 10 working days. Here are some examples:
- A sponsored worker doesn’t start their job
- They leave your organisation
- They’re absent from work for 10 or more consecutive working days without permission
- There’s a change in salary, job role, or location
- You stop sponsoring them for any reason
What Happens If You Don’t Comply?
With the end of routine sponsor licence renewal checks, the spotlight is now firmly on your compliance record. And if you’re not meeting your duties, the consequences can be swift—and severe.
What the Home Office Can Do
- Licence suspension – You’ll temporarily lose your ability to sponsor new workers
- Downgrading to a B-rating – This comes with mandatory action plans and extra fees
- Full revocation – Your licence is removed, and you’re banned from sponsoring workers altogether
What It Means for Your Sponsored Workers
A suspended or revoked licence doesn’t just affect you, it puts your current sponsored staff in a difficult position too:
- Their leave to remain could be curtailed
- They may need to find a new sponsor within 60 days
- The company may lose key talent, disrupting projects and operations
FAQs
No action is required. If your licence was valid on or after 6 April 2024, it will be automatically extended for 10 years. You won’t need to submit a renewal application or pay a renewal fee. Just focus on staying compliant with your sponsor duties.
If your licence expired before 6 April 2024, you’re not eligible for the automatic extension. In that case, you would have needed to follow the old process, including applying for sponsor licence renewal and paying the fee. If you’re unsure, check your licence expiry date on your SMS account or contact us for guidance.
For most sponsors, yes. If your licence is automatically extended, you don’t need to pay the sponsor licence renewal fee anymore. However, sponsors under routes like UK Expansion Worker or Scale-up may still have shorter validity periods and could incur renewal fees depending on their circumstances.
Absolutely. Even though renewal is no longer required for most sponsors, staying compliant is more important than ever. Our experts at Legend Consults can help with mock audits, HR reviews, staff training, and up-to-date immigration advice. Avoid penalties and protect your licence long-term.
Let Legend Consults Secure Your Sponsor Licence
Adapting to the new sponsor licence renewal rules and staying compliant can feel like a daunting task. But losing your licence is much worse. It can seriously damage your business, especially if you rely on overseas workers for hard-to-fill roles. Rebuilding trust with the Home Office takes time and sometimes, the damage is difficult to reverse.
At Legend Consults, we support your business by conducting mock compliance audits to help you identify potential issues before they escalate and providing expert guidance on immigration rules.
Is your sponsor licence about to expire? Don’t risk noncompliance. Call us for a stress-free renewal process.
When it comes to sponsor licence renewal, there are a few things to keep in mind. As of 6 April 2024, the UK Home Office has removed the mandatory four-year renewal requirement for sponsor licence holders. Licences that were valid on or after this date are now automatically extended for 10 years.
This move was meant to reduce admin load and streamline sponsorship operations overall. But even though the load of paperwork might have eased, compliance expectations are now stricter than ever.
So, what does this mean for you as a UK sponsor? Keep reading to find out what’s changed, what’s still required, and how to protect your licence status under the updated system.
