A UK Sponsor Licence is official authorisation from the Home Office (UK Visas and Immigration – UKVI) that allows a UK-based employer to legally hire and sponsor overseas workers for eligible job roles.
Whether you’re hiring under the Skilled Worker Visa or a Temporary Worker route, holding a valid sponsor licence is the foundation for employing talent from outside the UK.
What Is a UK Sponsor Licence?
A UK Sponsor Licence is a permit granted by UKVI that enables UK employers to employ non-UK residents lawfully. It ensures the employer is a genuine and compliant organisation capable of monitoring sponsored workers.
You need a sponsor licence if you intend to hire:
- Skilled Worker Visa holders for long-term roles, or
- Temporary Workers for short-term or project-based positions.
New rule (April 2024): Sponsor licences now automatically renew for 10 years, reducing administrative burden on employers.
Types of Sponsor Licences
| Type | Description | Common Routes |
|---|---|---|
| Worker Licence | For long-term, skilled employment. | Skilled Worker Visa • T2 Minister of Religion • Global Business Mobility |
| Temporary Worker Licence | For short-term, seasonal, or project work. | Charity Worker • Creative Worker • Government Authorised Exchange • Seasonal Worker |
Many businesses apply for both to cover multiple routes.
Eligibility Criteria for a Sponsor Licence
To qualify, your business must demonstrate:
- Genuine trading presence in the UK (registered Ltd, PLC, LLP or Sole Trader).
- Active operations with a real office or premises – not a virtual address.
- Robust HR and recruitment systems to track visa holders’ attendance, records and reporting duties.
- Appointed Key Personnel:
- Authorising Officer
- Key Contact
- Level 1 User
- No unspent criminal convictions for immigration or corporate offences.
- Financial credibility through business bank account and records.
For new or small businesses: UKVI may conduct a pre-licence visit to assess compliance.
A Y & J Solicitors assists start-ups and SMEs in audit readiness and document preparation.
How to Apply for a Sponsor Licence (2025 Step-by-Step Guide)
- Choose the Licence Type — Worker or Temporary Worker.
- Gather Supporting Documents — at least four from Home Office Appendix A (e.g., bank statements, liability insurance, audited accounts).
- Complete the Online Application on the UK Visas and Immigration portal.
- Pay the Application Fee.
- Email Documents and a signed submission sheet within 5 working days.
- Undergo Assessment or a Compliance Visit if requested.
- Receive a Licence Rating:
- A-Rating = full approval
- B-Rating = temporary licence with improvement plan
- Assign Certificates of Sponsorship (CoS) to approved roles.
Standard processing time: up to 8 weeks
Priority service: 10 working days (£500 extra)
Costs and Fees (Updated for 2025)
| Fee Type | Small / Charitable Sponsor | Medium or Large Sponsor |
|---|---|---|
| Licence Application – Worker Route | £574 | £1,579 |
| Licence Application – Temporary Worker | £574 | £574 |
| Certificate of Sponsorship (CoS) | £525 (Skilled Worker) / £55 (Temp Worker) | £525 / £55 |
| Immigration Skills Charge (ISC) | £364 for first 12 months + £182 each 6 months | £1,000 for first 12 months + £500 each 6 months |
| Priority Processing Fee | £500 | £500 |
Since April 2024, most licences auto-renew for 10 years, eliminating renewal fees.
Validity and Renewal
- Standard validity: 10 years for most licence types.
- Exceptions: 4-year limit for Expansion Worker and Scale-up routes.
- Licences remain valid as long as the business continues to meet sponsor duties.
- Failure to comply can lead to downgrade, suspension, or revocation.
Sponsor Duties and Compliance Responsibilities
Once approved, you must adhere to strict sponsorship duties:
- Assign CoS only for eligible and genuine roles.
- Pay Immigration Skills Charge on time.
- Keep detailed records for each sponsored employee.
- Report changes (address, job title, absences, termination) via the Sponsor Management System (SMS).
- Conduct Right to Work checks.
- Remain ready for unannounced UKVI visits.
Non-compliance may result in licence downgrade or revocation.
A Y & J Solicitors offers Sponsor Licence Compliance Retainers to protect your business and maintain your licence rating.
After Getting Your Sponsor Licence
Once granted:
- You can assign Certificates of Sponsorship (CoS) to eligible employees.
- The employee uses the CoS reference to apply for a Skilled Worker Visa or related route.
- Your business must continue meeting its sponsor duties throughout employment.
Flow: Employer Licence → Assign CoS → Employee Visa Approval → Ongoing Compliance.
Common Reasons for Sponsor Licence Refusal or Revocation
Avoid these frequent mistakes:
- Submitting incomplete or inaccurate documents.
- Weak or non-existent HR systems.
- Operating from “ghost offices” or virtual-only locations.
- Appointing unfit key personnel (e.g., with immigration offences).
- Having unspent criminal convictions.
- Failing to report changes to UKVI promptly.
If revoked, your business faces a 12-month cool-off period before reapplying.
Recent Rule Updates (2024 – 2025)
- Licence validity: Automatic 10-year renewals since April 2024.
- Fee adjustments: Implemented 2025 Home Office update.
- Skilled Worker salary threshold: £41,700 from July 2025.
- Tighter compliance oversight: Greater monitoring of reporting duties and audit records.
Addressing Employer Pain Points
| Pain Point | Why It Matters | How We Help |
|---|---|---|
| Complex Process | The UKVI application portal can be confusing and time-consuming. | We simplify it with a clear 8-step application checklist. |
| Compliance Fears | Businesses fear losing their licence for minor errors. | Our Compliance Retainer monitors your duties year-round. |
| Uncertain Timelines | Processing varies from weeks to months. | Priority service within 10 days available. |
| Hidden Costs | Multiple fees often confuse employers. | Transparent cost tables and custom fee guidance. |
| Start-Up Eligibility Doubt | SMEs unsure if they qualify. | Dedicated support for new businesses and micro-employers. |
| Audit Anxiety | Fear of failing a Home Office visit. | Pre-licence audit preparation by our legal team. |
| DIY Errors | Self-applications often get rejected. | Expert case handling with Legal 500-recommended lawyers. |
| Post-Approval Neglect | Many lose licences for poor record-keeping. | Post-licence checklists and training for HR teams. |
Frequently Asked Questions (2025 Edition)
What is a Sponsor Licence in the UK?
Official permission granted by UKVI allowing UK employers to hire overseas workers legally.
How long does it take to get one?
Standard processing can take up to 8 weeks; priority applications are usually decided within 10 working days.
Who is eligible to sponsor workers?
Any lawfully operating UK business with real operations, adequate HR systems, and no unspent convictions.
How much does a Sponsor Licence cost in 2025?
£574 for small or charitable sponsors and £1,579 for medium or large employers.
What are the risks of sponsorship?
Non-compliance may lead to downgrade, suspension, or revocation of your licence.
What salary is required for a Skilled Worker Visa in 2025?
Minimum salary threshold is £41,700 (from July 2025), subject to occupation codes and discounts for PhD holders.
Who cannot be a sponsor?
Businesses or personnel with unspent immigration offences or no active UK presence.
What are the new rules for 2025?
10-year licence validity, updated fees, higher salary thresholds, and enhanced compliance visits.
What are the disadvantages of sponsorship?
Ongoing reporting duties, administrative burden, and financial costs if non-compliance occurs.
What are the eligibility requirements for a Sponsor Licence?
Genuine UK entity, HR system, honest key personnel, and real vacancy that meets skill and salary criteria.
Why Choose A Y & J Solicitors
- Legal 500 Recommended Immigration Firm
- 5,000 + successful visa and sponsorship cases
- Expertise in Sponsor Licence applications, compliance, and revocation defence
- Trusted by SMEs, healthcare providers, and multinational employers across the UK
Get Sponsor Licence Help from Experts
Speak with our UK immigration specialists today to secure your licence and stay compliant.