If your business needs to hire someone who requires sponsorship to work in the UK, you will usually need a sponsor licence before you can employ them under the Skilled Worker route. This applies whether the person is applying from overseas or is already in the UK on a visa that allows them to switch into sponsored work.
A sponsor licence is not needed for every overseas national. For example, Irish citizens, people with Indefinite Leave to Remain, and those with settled or pre-settled status under the EU Settlement Scheme usually do not need sponsorship. However, where a worker does need Skilled Worker sponsorship, the licence is a legal requirement.
This guide breaks the sponsor licence application down into clear, practical steps, so you know what to expect and what your business needs to prepare. If you would like expert support at any stage, the team at Hedgley Immigration provides trusted uk immigration services london for employers across the country.
What Is a Sponsor Licence?
A sponsor licence is official permission granted by the Home Office that allows a UK-based organisation to sponsor overseas workers under routes such as the Skilled Worker visa. Without one, you cannot issue a Certificate of Sponsorship to a worker who needs sponsorship to work for your business.
The licence is issued to your organisation, not to individual employees. Once you hold it, you can sponsor eligible workers provided you have the right Certificate of Sponsorship allocation or approval, and continue to meet your ongoing compliance duties.
A sponsor licence does not guarantee that every role or worker will qualify. Each sponsored job must still meet the relevant route requirements, including skill level, salary, genuineness and working conditions.
Our blog post on the skilled worker sponsor licence guide is a useful companion read alongside this article.
Step 1: Check Whether Your Business Is Eligible
Before you apply, you need to confirm that your organisation qualifies. The Home Office will not grant a licence simply because a business wants to hire from overseas. It will check whether you are genuine, lawfully operating in the UK, and capable of meeting sponsor duties.
To be eligible, your business must usually be able to show that it:
- Is a genuine organisation operating lawfully in the UK
- Has a real UK presence and appropriate business evidence
- Can offer genuine roles that meet the Skilled Worker requirements
- Has suitable HR and compliance systems in place
- Has no relevant unspent criminal convictions among key people, such as convictions for immigration offences or certain other serious offences
- Has not had a sponsor licence revoked in circumstances that still prevent a fresh application
The Home Office may carry out a pre-licence compliance visit to check your premises, systems and operations. This is more likely where the business is new, small, high-risk, or where the application raises questions. Preparing for that possibility from the outset is sensible.
Step 2: Identify the Roles You Want to Sponsor
Not every job qualifies for Skilled Worker sponsorship. The role must appear on the Home Office list of eligible occupations and must meet the correct skill and salary requirements.
Under the current Skilled Worker rules, eligible occupation codes are grouped into higher-skilled and medium-skilled roles. Higher-skilled roles can usually be sponsored if the salary and other visa requirements are met. Medium-skilled roles are more restricted and may only qualify in specific circumstances, such as where the role appears on the Immigration Salary List or Temporary Shortage List, or where transitional arrangements apply.
Salary is also a key requirement. The standard Skilled Worker salary threshold is currently £41,700 per year, or the going rate for the occupation code, whichever is higher. Lower thresholds can apply in limited cases, such as some new entrant roles, certain PhD-related roles, jobs on the Immigration Salary List, Health and Care roles, prison officer transitional cases, or applications covered by transitional salary rules. The correct figure depends on the occupation code, hours, role type and applicant’s circumstances.
Our post on skilled worker salary thresholds has the latest breakdown by occupation code, so it is worth checking before you commit to a specific role.
You also need to confirm that the candidate you have in mind meets the skilled worker visa eligibility requirements on their side, including English language ability and the wider visa criteria.
Step 3: Appoint Key Personnel
A sponsor licence requires your organisation to appoint specific people to manage the licence and deal with the Home Office. These roles are important because the Home Office expects them to understand and follow sponsor duties.
The main roles are:
- Authorising Officer – The senior person responsible for the licence. This person is accountable for how the licence is used and should normally be based in the UK. They must be someone within the organisation, such as a senior employee, director, partner or office holder, rather than an external adviser.
- Key Contact – The main point of contact with the Home Office. This can be someone within the organisation or, in some cases, a legal representative.
- Level 1 User – The person who manages day-to-day activity on the Sponsorship Management System, such as assigning Certificates of Sponsorship and reporting changes.
These individuals may be subject to checks. Anyone with relevant criminal convictions, previous immigration breaches or involvement with a revoked sponsor licence may create problems for the application.
You should choose people who understand the seriousness of the role. Sponsor compliance is not just an administrative task. The Home Office expects key personnel to manage the licence responsibly and keep accurate records.
Step 4: Gather Your Supporting Documents
This is where many applications run into problems. The Home Office requires specific evidence to support a sponsor licence application, and the exact documents depend on your organisation type, structure and sector.
Many employers may need to provide evidence such as:
- Employer’s liability insurance with cover of at least £5 million, where required by law
- HMRC registration evidence, such as PAYE or accounts office references
- VAT registration evidence, if applicable
- Companies House registration details, if applicable
- Evidence of a UK business address
- Recent business bank statements
- Evidence of trading activity, contracts, invoices or business operations
- Evidence explaining the role you want to sponsor and why it is needed
The Home Office’s sponsor licence supporting document guidance sets out the evidence different organisation types may need to provide. The Home Office may also request further information if it needs to understand your business, vacancy or compliance systems more clearly.
Getting this right is crucial. Submitting the wrong documents, missing key evidence or giving unclear explanations can lead to delays or refusal. As an employer sponsor licence london applicant, working with an adviser to prepare this pack properly is often the most efficient approach.
Step 5: Submit the Application Online
The sponsor licence application is submitted through the Home Office’s online sponsor licence application service. You will need to:
- Complete the online application form
- Choose the correct licence type, such as Worker, Temporary Worker, or both
- Provide details of your organisation and key personnel
- Explain the roles you intend to sponsor
- Submit the required supporting documents
- Pay the application fee
The current Home Office fee for a Worker sponsor licence is £611 for a small or charitable sponsor and £1,682 for a medium or large sponsor. These fees are non-refundable, so it is important to make sure the application is accurate before it is submitted.
The sponsor must pay the licence application fee. If a sponsor asks the sponsored worker to pay the fee or costs linked to the application, the Home Office may take compliance action.
If your licence is approved, you will then use the Sponsorship Management System to manage the licence, assign or request Certificates of Sponsorship, and report relevant changes.
Step 6: Wait for the Home Office Decision
Standard sponsor licence processing usually takes up to 8 weeks, although some applications are decided sooner and others take longer if the Home Office requests more information or carries out checks.
A priority service may be available for an additional fee of £750. Where accepted, the priority service aims to consider the application within 10 working days, but it does not guarantee approval. Places are limited, and not every route or application will be eligible.
During the decision process, the Home Office may:
- Request additional documents or explanations
- Carry out a compliance visit to your business premises
- Interview key personnel
- Check your HR systems and record-keeping processes
- Examine whether the roles you want to sponsor are genuine and eligible
You should respond promptly and clearly if the Home Office contacts you. Delays or incomplete responses can slow the process and may damage the application.
Step 7: Assign Certificates of Sponsorship
Once your licence is granted, you can begin sponsoring workers, but each worker must still meet the Skilled Worker requirements. You will need to assign or request the correct Certificate of Sponsorship for each person.
A Certificate of Sponsorship is not a paper certificate. It is an electronic record with a unique reference number that the worker uses in their visa application.
There are 2 main types:
- Defined CoS – Usually used when the worker is applying for entry clearance from outside the UK. You must request a Defined CoS from the Home Office and wait for approval before assigning it.
- Undefined CoS – Usually used for workers applying from inside the UK, including those switching visa routes, changing employer or extending their permission. These are assigned from your annual allocation.
Each CoS must accurately reflect the job title, duties, occupation code, salary, hours, work location and start date. Errors or inconsistencies at this stage can cause problems for the worker’s visa application.
The current Certificate of Sponsorship fee for the Skilled Worker route is £525. You may also need to pay the Immigration Skills Charge unless an exemption applies. These costs should be factored into your recruitment planning.
Your Ongoing Compliance Obligations
Holding a sponsor licence is not a one-off process. It comes with continuing duties, and the Home Office can take action if your business fails to comply.
Sponsors must:
- Keep accurate records for sponsored workers
- Carry out right-to-work checks correctly
- Monitor sponsored workers’ attendance and contact details
- Report relevant changes to the Home Office within the required timescales
- Tell the Home Office if a sponsored worker does not start work, leaves the business, changes role or has a significant change in circumstances
- Keep the organisation’s details up to date on the Sponsorship Management System
- Cooperate with Home Office compliance visits
- Make sure sponsored roles remain genuine and meet the relevant salary and skill requirements
Failures in compliance can result in your licence being downgraded, suspended or revoked. That can have serious consequences for your sponsored employees and your ability to recruit from overseas.
Our blog on sponsor licence compliance in 2026 sets out exactly what your duties look like in practice.
What About Self-Sponsorship?
It is worth mentioning that a sponsor licence is not only for conventional employers hiring external staff. The self-sponsorship route, where a business owner or director is sponsored as a Skilled Worker through their own UK company, uses the same licence framework.
There is no separate visa category called a self-sponsorship visa. In practice, it is usually a Skilled Worker application supported by a genuine UK business that holds a sponsor licence and can sponsor a real eligible role.
If this applies to you, our page on self sponsorship immigration consultant london has more detail, and our article on the self-sponsorship visa UK explained walks through how the process works step by step.
Thinking About Your Employees’ Long-Term Futures?
Many employers who sponsor overseas workers find that their staff eventually want to settle permanently in the UK. It is worth knowing that after 5 years on a Skilled Worker visa, your employees may be eligible to apply for ilr services london, provided they meet the settlement requirements.
After that, they may go on to pursue british citizenship naturalisation consultant london services, or broader british citizenship consultant london support.
Some employees may also have family members applying for a uk spouse visa consultant london alongside their own immigration journey. We can help with all of this, supporting both the business and its people at every stage of their UK immigration journey.
For employees who have been in the UK for a significant period across different visa types, the long residence application london route may also be worth exploring.
Frequently Asked Questions
How long does a sponsor licence last?
For most Worker and Temporary Worker sponsors, the requirement to renew a sponsor licence every 4 years was removed in April 2024. In most cases, the licence remains valid unless it is surrendered or revoked.
This does not mean the licence can be ignored. The Home Office can still downgrade, suspend or revoke a licence if compliance standards are not met. Some routes, such as UK Expansion Worker and Scale-up, may still have route-specific licence limits.
Can a start-up or new business apply for a sponsor licence?
Yes. A start-up or new business can apply for a sponsor licence, but newer businesses often face closer scrutiny. You need to show that the organisation is genuine, lawfully operating or credibly ready to trade, and able to meet sponsor duties.
You may also need to provide stronger evidence explaining the business model, funding, contracts, premises, trading plans and why the sponsored role is needed.
Can I use an agency or consultant to apply on my behalf?
Yes. A regulated immigration adviser can help prepare and submit the application, advise on documents, review the role, and support you with compliance.
However, the Authorising Officer must be someone within your organisation. An external consultant cannot take that role. A legal representative may be able to act as Key Contact or Level 1 User in some circumstances, but your business must still understand and control its own sponsor duties.
What happens if I hire someone without a licence?
If the person needs Skilled Worker sponsorship and you do not have a sponsor licence, you cannot lawfully sponsor them under that route. Employing someone who does not have the right to work in the UK can lead to serious consequences.
Civil penalties can be up to £60,000 per illegal worker. In serious cases, criminal prosecution is also possible. It is not worth the risk.
Can I sponsor workers in multiple locations across the UK?
Yes. A single sponsor licence can cover your organisation across multiple UK sites, provided the Home Office is kept updated and your compliance systems cover each relevant location.
You should report changes to business addresses, branches, work locations and organisational structure where required.
What is the difference between a Skilled Worker licence and a Temporary Worker licence?
A Skilled Worker licence is for longer-term sponsored employment in eligible skilled roles. It is commonly used where the worker may later become eligible for settlement, provided all requirements are met.
A Temporary Worker licence covers specific short-term routes, such as certain charity, creative, religious, seasonal or government-authorised exchange roles. The right licence depends on the type of work, the length of the role and the immigration route being used.
Some businesses apply for both Worker and Temporary Worker licences if they need to sponsor people under different routes.
Ready to Get Your Sponsor Licence in Place?
Getting a sponsor licence right first time can save your business significant time, money and stress. The application process is detailed, the compliance duties are ongoing, and the consequences of getting it wrong can be serious. With the right support, however, it is entirely manageable.
At Hedgley Immigration, Sean and Lydia Hedgley work with UK employers of all sizes to prepare robust sponsor licence applications and maintain ongoing compliance. Sean’s background as a former UKVI caseworker means he understands what the Home Office is looking for and how to present your business clearly.
Get in touch today to find out how we can help.
- Call Sean: 07704 909490
- Call Lydia: 07587145994
- Email: sean@hedgleyimmigration.co.uk
Clear, expert guidance — so you can focus on running your business.