Common SMS reporting mistakes of employers rank among the top triggers for sponsor licence downgrades, suspensions, and revocations in the UK, with most slip-ups rooted in weak processes and training gaps rather than intentional rule-breaking.
- Deadlines get missed: Failing to hit the 10-working-day window for staff changes or the 20-working-day limit for organisational shifts triggers compliance enforcement.
- Errors in worker data: Faulty CoS information, such as mismatched SOC codes, outdated salaries, or incorrect office locations, leads to visa rejections and audit red flags.
- Records not aligned: When SMS records do not match HR files, contracts and payslips, expect red flags during Home Office visits.
- Roles below standard requirements: Issuing CoS for positions that don’t satisfy skill or salary levels can prompt accusations of non-genuine vacancies and licence freezes.
- Outdated system access: Ex-employees remaining as active users creates security breaches and demonstrates poor internal controls.
- Messages go unread: Overlooking the SMS message board means missing vital updates on rule shifts, compliance warnings, and information demands.
- Weak internal processes: Absence of written procedures, proper training, and routine audits lets minor errors snowball into serious compliance issues.
A Y & J Solicitors works with UK sponsors to spot and fix these common SMS reporting mistakes before the Home Office does, through detailed audits, practical training and compliance systems that actually work.
Table of Contents
Why SMS Reporting Mistakes Put Your Licence at Risk
The Sponsorship Management System (SMS) serves as the primary tool the Home Office uses to judge whether you are organised, honest and trustworthy. Every action in SMS leaves a trail that compliance officers review during checks. Patterns of poor reporting lead quickly to licence downgrades, suspensions and revocations.
Most common SMS reporting mistakes of employers do not stem from bad intentions. They come from rushed processes and gaps in knowledge. HR managers update internal systems and completely forget about SMS. Level 1 users copy data from previous CoS without checking the details. Line managers do not realise that when workers disappear for two weeks, it needs to be reported.
This guide walks through the biggest mistakes, what they cost you and how to fix them before anyone notices.
Mistake 1: Failing to Report Changes Within Home Office Deadlines
Missing reporting deadlines is the most common and most dangerous SMS mistake sponsors make. The Home Office does not care if you were busy or if the staff forgot to update the SMS. To them, a late report means you are not in control.
Understanding the Deadlines
Most changes involving your workers need reporting within 10 working days. Did a worker not show up for their start date? Report it. Has their job title changed? Report it. Different office location, salary reductions, gone AWOL for more than 10 days, quit, or got fired? Your company must report all of them within 10 working days. For company matters such as name changes, new addresses, ownership shifts, or key personnel moves, you have 20 working days.
Why It Happens
The disconnect usually happens in the handover. HR updates their system and moves on. Nobody thinks about SMS. There is no clear line of communication between line managers, HR and Level 1 users. When a reportable event occurs, it just sits there. Many sponsors track the change internally and assume that is enough. The Home Office wants to hear about it via SMS and on time.
Consequences and Prevention
If you keep missing deadlines, you are building a case against yourself. The Home Office looks at late reporting as proof that you are not monitoring your workers properly. Add in a few other issues, and you are looking at a downgrade or suspension. To avoid this, create a trigger list of what needs reporting and make sure everyone who works with sponsored staff has seen it. Build a clear path for information to flow from managers to HR to your Level 1 user. Use a compliance calendar or task system that tracks deadlines from when things actually happen.
Mistake 2: Inaccurate or Incomplete Worker and CoS Details
When you fill in a Certificate of Sponsorship, you are not just completing a form. That information becomes the foundation of the worker’s visa application. Moreover, the Home Office uses it to decide if the job is legitimate.
Typical Data Entry Mistakes
Common errors include wrong salary figures. More often, staff might copy it from last year and forget to update it. SOC codes that do not match what the person will actually be doing will create problems. Vague job descriptions cause confusion about what the worker will actually do. Old addresses that have not been updated since workers moved offices remain in the system. Or staff tick boxes saying a job qualifies for something when it does not. These mistakes happen when people rush their duties.
Impact on Compliance
Get your CoS data wrong, and the worker’s visa gets refused. During audits, officers compare what you said in SMS to what is in contracts and payslips. Mismatches will look bad. It suggests you either do not know what you are doing or you are being deliberately misleading. Neither conclusion helps you. The Home Office expects accuracy. When you are careless with this information, they lose confidence in everything else you tell them. Understanding CoS mistakes that risk the sponsor licence is essential for maintaining compliance.
Good Practice for Accuracy
The solution is to treat every single CoS like the legal document it is. Before you assign anything, run through a checklist. Does the job description match the contract? Is the SOC code right for what this person will actually do? Is the salary correct? Is the location current? Subsequently, have a second Level 1 user or senior HR staff member review it. This is especially important if the role is anywhere near a minimum threshold.
Mistake 3: Poor Record Keeping and Mismatch Between SMS and HR Files
The Home Office expects your SMS entries to match your actual records perfectly. When they do not, you have a compliance problem.
What UKVI Expects
You need to be able to show the link between what is in SMS and the real evidence. That means matching each SMS entry to the contract. You must also match it to payslips proving you are paying what you said you would pay. Additionally, attendance records should show that the person is actually there working. Right to work checks must confirm their immigration status. When compliance officers visit or ask for proof, they will line everything up. If there are any gaps or differences, they will start asking uncomfortable questions. Specifically, they question whether you are really monitoring your employees.
Common Problems
This is where things typically fall apart. HR updates a contract or changes a worker’s salary in their system. But the SMS system remains untouched. Addresses and phone numbers drift out of sync. This happens because the staff updated one database but not the other. Many sponsors have no internal record of who did what in SMS. Therefore, when the Home Office asks why they made a decision, there is no good answer. That makes it almost impossible to defend yourself. You also cannot show that a mistake was just a one-off. These UKVI SMS reporting errors and penalties can be severe.
Fixes for Better Record Keeping
The answer is regular housekeeping. Every month or quarter, compare your SMS data with your HR records for each sponsored worker. Keep your own simple log of SMS activity with dates, who did it, and why. Additionally, make sure your HR workflows automatically flag when a sponsored worker’s details change. This way, updating SMS becomes part of the process rather than an afterthought.
Mistake 4: Assigning CoS to Roles That Do Not Meet Skill or Salary Rules
When you sponsor a role that does not meet the immigration requirements, you show one of two things. Either you do not understand the rules, or worse, you are trying to cheat the system.
Problem Areas
The common mistakes include sponsoring a role that is below the skill level the route requires. Picking a SOC code just because the job title sounds right will create issues. This happens even though the actual duties do not match. Offering a salary under the threshold or below the going rate. These usually happen when there is pressure to get workers in quickly. They also occur when rules have changed, and nobody has noticed. Sometimes people assume that because they sponsored this role before, it must still be fine. Consulting the Appendix Skilled Occupations helps ensure compliance with current requirements.
Consequences of Misuse
First, the visa gets refused. Your recruitment plans fail. But it gets worse. The Home Office might start questioning whether your vacancies are genuine. They may question whether you are trying to abuse the sponsor system. If they see a pattern or think you are doing this deliberately, your licence can get suspended or revoked. That is not a slap on the wrist. That is a complete loss of your sponsorship capability.
Prevention Through Proper Checks
Before you assign a CoS, check the current rules on GOV.UK. Look at Appendix Skilled Occupations and the salary thresholds. Read the job description properly and match it against what the SOC code actually covers. Remember, the Home Office judges this on what the person does. They do not judge it by the job title. To be even more careful, assign a senior HR or compliance person to sign off before the CoS goes out. Learning how to avoid SMS reporting non-compliance starts with proper verification at every step.
Mistake 5: Leaving Inactive or Inappropriate SMS Users on the System
Poor access control tells the Home Office you are not managing security properly.
Typical Issues
A staff member leaves your company, but their SMS login remains active. Nobody remembered to switch it off. Sometimes, people change roles but still keep access they no longer need. This happens because there is no regular review. Or worse, teams share logins because it seems easier than giving everyone their own. When you do that, you lose all ability to track who actually did what.
Why It Matters
SMS tracks everything by user ID. If the Home Office see that SMS login details have been shared with other staff members, this can lead to a suspension of the licence. It is extremely important that users do not share their login details. Only the nominated Level 1 User can access the SMS. If a company has multiple users, each person will need their own Level 1 User ID and password. Understanding your sponsor licence duties includes proper user management.
Good Practice for User Management
Make removing SMS access part of your standard exit process. When a staff member leaves, remove their SMS access on the same day. Do this just like you would cut off their email and building access. Every few months, review your user list. Check if everyone still needs the access they have. Furthermore, make it crystal clear that logins are personal. Sharing logins is not allowed.
Mistake 6: Ignoring SMS Message Board and Home Office Communications
The SMS message board is not optional reading. It is where the Home Office tells you things you need to know. Ignoring it creates problems that could have been avoided.
What Sponsors Often Miss
The SMS message board is where the Home Office posts licence-specific communications and system notifications relating to the Sponsorship Management System. This includes requests for information about your licence or specific Certificates of Sponsorship you have issued, as well as technical or operational updates to how the SMS must be used. Messages on this board are official and should be read by Level 1 users each time they log in. Many sponsors overlook these communications because Level 1 users only access SMS when they need to perform a task, rather than checking for messages regularly.
Why Messages Are Overlooked
Some sponsors think the important information will come by email to the Key Contact. They figure the message board is just an administrative activity. That is wrong. Without regular checking, weeks or months can go by with messages piling up. Deadlines pass. Consequently, issues that could have been sorted out early become serious compliance problems. These common SMS reporting mistakes of employers often result in immediate licence suspension.
Prevention and Response
Make it part of the Level 1 user’s responsibilities to check the message board every week without skipping. Document who is responsible and what they should do when they find a message. Keep copies of anything important and your responses in a file you can access easily. That way, you have proof that you take Home Office communications seriously.
Mistake 7: Lack of Internal Procedures, Training and Audits
All the mistakes we have talked about share something in common. They happen when you do not have proper systems in place.
Typical Signs of Weak Processes
You know you have got a problem when there is nothing written down about how SMS should be used. Different people handle the same situation in completely different ways. Usually, the new Level 1 or Level 2 users figure it out as they go. They learn through trial and error. There are no regular checks to catch when SMS and HR records drift apart. Crucially, nobody owns SMS compliance. It is just something that happens alongside everyone’s real job.
Why This Leads to Mistakes
Without clear procedures, everyone makes their own judgment calls about what needs reporting and when. Changes slip through because there is no checklist to catch them. Small mistakes go unnoticed because nobody is looking. The risk builds up slowly. Eventually, Home Office scrutiny during a compliance visit reveals the full extent of the problem.
Solutions for Better Systems
Document your processes. Create a simple SMS compliance manual that explains who does what. List everything that needs reporting with deadlines. Give step-by-step instructions for common tasks. Train people properly when they start using SMS. Refresh that training when rules change. Then schedule regular spot checks where you compare SMS data to HR records for a handful of workers. Reviewing sponsor licence guidance for employers can provide an essential framework of knowledge.
Consequences of SMS Reporting Mistakes
Understanding what happens when the Home Office catches these mistakes matters for every sponsor.
Licence Downgrade to B Rating
A downgrade from A rating to B rating means the Home Office found breaches serious enough to need fixing. Your B rating stops you from sponsoring anyone new. You cannot sponsor until you pay £1,579 for an action plan and complete everything they tell you to do. You have got 10 working days to pay. Miss that deadline and they revoke your licence completely.
Licence Suspension
Suspension means you cannot issue any new Certificates of Sponsorship while the Home Office investigates. Your current workers can keep working. However, you cannot extend visas, change employment terms or bring anyone new in. Suspensions typically last one to three months. During that time, your sponsored workers get nervous. Some will leave rather than wait to see what happens. Understanding common reasons for a sponsor licence suspension helps prevent these situations.
Licence Revocation
Revocation is permanent. The Home Office withdraws your sponsor licence immediately. You lose the right to sponsor anyone. You cannot reapply for at least twelve months. Workers already here get their visas cut short, usually to 60 days. They need to find a new sponsor, switch to a different visa or leave the country. Additionally, your company’s name goes on the Home Office website as having lost its licence. The reputational damage is significant.
Civil Penalties and Wider Impact
Suppose you have SMS problems combined with poor right-to-work checks — it means you employed workers illegally. So you might face civil penalties. These can reach up to £60,000 per person. Beyond the immediate hit, enforcement action damages your reputation. Current and future employees question whether you know what you are doing. Rebuilding trust takes time and money.
How to Build a Robust SMS Reporting Framework
You can prevent most of these problems with some straightforward systems.
Clear Responsibilities and Named Individuals
Write down exactly who does what when it comes to SMS. Name actual people for your Authorising Officer, Key Contact and Level 1 user roles. Appoint a backup Level 1 user so you are covered if the primary user is away. Make sure everyone knows their role. Ensure they know who to ask when they are not sure about something.
Practical Tools for Tracking and Compliance
Set up a compliance calendar to track reporting deadlines, and other important dates. Create simple forms or templates that capture the information Level 1 users need to make reports. Keep a shared log of everything done in SMS with dates, who did it and a quick note about why. Knowing how to check your sponsor licence number is also part of basic compliance knowledge.
Training and Guidance for All Users
When new staff start using SMS, train them properly. Explain what the system is, what they are allowed to do and what needs reporting. Give them quick reference guides or checklists for the tasks they will do most often. When the Home Office changes the rules, update your training materials. Make sure everyone knows about the changes.
Regular Checks and Continuous Improvement
The comparison of SMS data with HR records for all sponsored employees should be done on a monthly or quarterly basis. Review who has access and remove anyone who does not need it anymore. Look back at old reports and CoS assignments to spot patterns. When you find issues, fix the root cause so they do not happen again. Understanding how to avoid SMS reporting non-compliance requires ongoing vigilance.
How A Y & J Supports Sponsors with SMS Reporting
At A Y & J Solicitors, we have seen hundreds of UK sponsors struggle with SMS reporting. We help organisations spot these reporting problems and fix them before the Home Office gets involved. Our experienced business immigration consultants provide comprehensive support.
Conducting SMS Reporting Audits
Our SMS Reporting Health Checks review everything. We look at your SMS logs, CoS records and reported changes. Then we compare them with your HR files and right-to-work documents. We find the gaps, the inaccuracies and the patterns that could trigger enforcement action. We check your SMS data against contracts and payslips to spot mismatches that create risk.
Mapping and Redesigning Processes
We work with you to build or improve your internal SMS procedures. We map out how information should flow so reportable events get captured and actioned within deadlines. Our process identifies where things break down. Our team also shows where small changes could significantly cut your error rate. We create clear workflows for reporting changes, assigning CoS and tracking deadlines. We also assist with restructuring and role changes for employers to ensure compliance.
Training and Building Capability
Our compliance training is tailored according to the different roles. Authorising Officers, Key Contacts, Level 1 users, and Level 2 users are given training concentrating primarily on what they specifically need to do. We demonstrate real examples of common SMS reporting mistakes of employers and give practical ways to avoid them. Our team will customise the whole training to suit how your organisation really works.
Supporting Action Plans and Recovery
If you have already received a warning letter or had your licence suspended, we can help you respond effectively. We prepare detailed replies that address the Home Office’s raised concerns. We show what you have done to fix it. We support you through action plans. We also get you ready for audits and renewals, where your SMS use will be under the microscope.
Frequently Asked Questions
What are the most common SMS reporting mistakes sponsors make?
The biggest ones are missing the 10 working day deadline for reporting worker changes. Others include getting CoS data wrong, letting SMS records go misaligned with HR files, leaving ex-employees as active users, and ignoring the message board.
How long do I have to report changes to a sponsored worker in the SMS?
You have got 10 working days from when most things happen. That includes workers not starting, leaving, going missing or having changes to their job, salary or location.
What happens if I forget to report a change or report it late?
The Home Office sees it as evidence that you are not properly controlling your sponsored workforce. If it keeps happening, you face a downgrade to B rating. In serious cases, you face suspension or revocation. Even one of the common SMS reporting mistakes of employers, like late reporting, carries serious consequences.
What kind of data on a CoS causes problems if it is wrong?
Wrong SOC codes, incorrect salaries, vague job descriptions and outdated addresses cause CoS-related issues. False claims about whether a role meets certain requirements also create problems. Any of these can lead to visa refusals or become findings in a Home Office inspection.
How closely do SMS records need to match HR and payroll records?
They should be matched exactly. The Home Office expects to verify every single SMS entry against your underlying documents. Any difference is a problem. Using the employer checking service will help maintain accuracy.
Is it a problem if former employees still appear as Level 1 or Level 2 users?
Yes, it is a serious issue. It shows poor access control. It also creates both security and compliance risks.
How often should we log in to the SMS to check the message board?
At least once a week. Make it a routine task. Do not treat it as something you do when you remember.
Do we need written procedures for SMS reporting, or is training enough?
You need both. Procedures create consistency across your team. Training makes sure people understand how to follow those procedures properly.
Can SMS mistakes really lead to licence suspension or revocation?
Absolutely. SMS reporting errors are one of the main reasons sponsors lose their licences. This is especially true when there are patterns of late reporting, wrong data or records that do not match up.
Can A Y & J check our current SMS use and highlight risks?
Yes. Our SMS Reporting Health Checks review your logs, records and processes against Home Office requirements. We identify gaps and give you practical recommendations to fix them.
Take Action to Protect Your Sponsor Licence
SMS reporting mistakes do not have to happen. Most are entirely preventable with clear processes, proper training and regular checks. Build robust systems, train your people well and audit your data regularly. Do that, and you will protect your licence from the downgrades, suspensions and revocations that hit businesses every year.
A Y & J Solicitors assists organisations in strengthening SMS governance through detailed audits, tailored training, and effective process improvements. With over fifteen years of specialist experience, Legal 500 recognition, more than 5000 successful clients, and a 98% success rate across our immigration practice, our SRA-regulated team combines deep expertise with a proven track record. We have assisted numerous businesses in resolving serious compliance issues and reinstating suspended licences efficiently, providing clear, dependable guidance that safeguards your sponsor status and supports sustainable workforce planning.
Whether you need help with Skilled Worker visa applications, understanding temporary worker licences, or exploring the pre-licence priority service, we provide comprehensive support.
Get Expert Help
A Y & J Solicitors is an immigration law firm which specialises in Sponsor Licence applications and compliance. We understand the immigration laws and are result-focused professionals. You can connect with us at +44 20 7404 7933 today for assistance with your visa application or any other UK immigration law concerns. We’re here to help!
