How to Use Sponsorship Management System UK is a question every sponsor licence holder must answer to maintain compliance. The Sponsorship Management System is the Home Office’s official online portal for managing all aspects of sponsor licence compliance in the UK. This guide explains how to use Sponsorship Management System UK in a practical, step-by-step way.
- Mandatory for all sponsors: Worker, Temporary Worker and Student route licence holders use SMS to fulfil their legal obligations.
- Core functions: Issue Certificates of Sponsorship, report worker and organisational changes, manage key personnel and renew your licence through the system.
- User hierarchy: Four defined roles exist with different access levels: Authorising Officer, Key Contact, Level 1 user and Level 2 user.
- Strict reporting deadlines: Most worker changes must be reported within ten working days, organisational changes within twenty working days.
- High compliance stakes: Errors, delays and poor SMS management often cause licence downgrades, suspensions and revocations.
- Internal integration essential: SMS must be embedded within HR workflows, not treated as a separate administrative task.
- Regular audits recommended: Monthly or quarterly internal checks help identify discrepancies before the Home Office discovers them during compliance visits.
A Y & J Solicitors helps sponsors configure SMS properly from the start, trains staff for their specific roles, and runs deep audits that keep your licence protected from Home Office action.
What is the Sponsorship Management System UK?
The Sponsorship Management System is used by UK sponsors to issue Certificates of Sponsorship, report changes in circumstances, manage sponsorship obligations, and keep compliant employee and organisation records. This is the one-stop solution, thereby fulfilling the needs of all sponsor licensing requirements. Even though the SMS is used by the employer, the Home Office still has access to the system to review, monitor, and verify the data for compliance purposes.
The SMS system is central to managing your Sponsor Licence effectively and maintaining compliance with UK immigration rules.
Understanding How to Use the Sponsorship Management System
The main process is to log in as a Level 1 user, manage Certificates of Sponsorship, make reports about worker and organisational changes within timelines, and ensure that all SMS entries match with HR and payroll records. These are the main activities of everyday compliance with the sponsor licence.
The Home Office also communicates with your organisation through this portal, so every action you take inside the system has compliance significance. When used correctly, it becomes a reliable tool that gives you a clear and organised record of your sponsored workforce, workers on the Skilled Worker visa.
The SMS is the central record for every sponsorship duty, and every action you take in it becomes part of your compliance footprint.
Using the SMS Efficiently
Many sponsors underestimate how important efficient use of this system is. Missed reports, outdated details or incorrect data entries are all visible in Home Office scrutiny. These errors can trigger licence downgrades, suspensions or even revocation. This is why sponsors need a clear and practical way to use the system well, beyond the technical instructions found in official manuals.
This guide focuses on the real-world, day-to-day practices that help businesses use SMS effectively. Following SMS sponsor licence best practice means understanding the roles and permissions within the system, the daily tasks that keep your licence compliant, and the internal processes that make SMS part of a wider HR routine rather than an isolated login.
Key Roles Within the SMS – Hierarchy Explained
Knowing who does what inside SMS is the starting point for solid compliance. The Home Office assigns specific roles, each carrying different responsibilities and system access. Understanding Level 1 and Level 2 user responsibilities from UKVI is essential for proper system management.
Authorising Officer
The Authorising Officer is the senior person who carries ultimate responsibility for the sponsor licence. They may not log in every day, but they must understand the system because they’re answerable for everything done under the licence.
Key Contact
The Key Contact is the primary communication link between your organisation and the Home Office. They receive important messages through the system, so they need to monitor communication regularly and respond promptly to requests.
Level 1 User
The Level 1 user is responsible for daily activity inside the system. This includes assigning Certificates of Sponsorship, updating worker information and submitting reports on organisational changes. At least one active Level 1 user must always be in place.
Level 2 User
The Level 2 user has restricted access and usually supports specific tasks or individual cases. They cannot update key licence details or manage other users, but they can assist with routine CoS assignments and selected reports. These tasks reflect the essential Level 1 and Level 2 user responsibilities that UKVI expects sponsors to manage correctly.
Managing Access Properly
Only trained and trusted staff should have Level 1 or Level 2 access. Before granting access, brief the individual on what they can do, what they must not do and how their actions will be logged and auditable by the Home Office. Access must be removed immediately when staff leave or move to different roles. Leaving ex-employees on the system is a security breach and a compliance risk.
Never share logins. Each person must use their own user ID and password. Shared accounts are simply not allowed.
Setting Up the Sponsorship Management System Safely
Getting SMS configured right at the beginning and keeping access tight are fundamental to building a compliance setup that lasts. Learning how to use Sponsorship Management System UK safely begins with proper setup procedures.
Appointing Key Personnel
Your first step is to appoint your Authorising Officer and Key Contact, both of whom are required before you apply for a sponsor licence. The AO should be a senior figure who grasps their legal liability. The Key Contact should check messages regularly and respond quickly. Once the licence is granted, you can’t swap these roles without telling the Home Office and getting approval. If you need faster processing, consider the pre-licence priority service to expedite your application.
Setting Up Users
Every sponsor must have at least one Level 1 user. For most small organisations, one Level 1 user is sufficient. However, we strongly recommend appointing a second Level 1 user to provide cover during holidays, sickness or staff turnover.
Level 2 users can be added once the licence is active. Consider using Level 2 access when you need to delegate specific tasks without granting full system control.
Security Essentials
Each user must have a strong, unique password that is not shared with anyone else. Treat SMS login credentials with the same care you would apply to online banking or payroll systems. Avoid generic email addresses for users—everyone should have a personal business email they actually monitor. That way, password resets and system alerts reach the right person.
Keeping Access Current
When a Level 1 or Level 2 user leaves, remove their access immediately. Deactivating the user in SMS should be part of your standard offboarding process. Conduct regular reviews of who has access to SMS. Every six months, check the list of active users and confirm that each person still needs access. Remove anyone who has moved to different roles or is no longer involved in sponsorship activities.
Training New Users
When appointing a Level 1 or Level 2 user, provide proper induction covering what the system is, what tasks they can perform, what actions are prohibited and how their activity is logged. New users should also understand your internal processes, including how to verify salary and job details match employment contracts and who to contact when uncertain about reporting requirements.
Using SMS for CoS Allocation and Assignment
Issuing Certificates of Sponsorship is one of the most common jobs in SMS. Getting it right means understanding the two CoS types and making sure every certificate is filled out accurately. Using SMS to manage Certificates of Sponsorship requires careful attention to detail and strict adherence to immigration rules.
Understanding Undefined and Defined CoS
Undefined CoS
Undefined CoS cover workers already in the UK who want to switch visa routes or extend their current permission. These are handed out annually based on your business size and hiring plans. When you apply for a licence, you estimate how many undefined CoS you will need over the next twelve months. The Home Office reviews this and grants an allocation. You have 12 months to use it, and unused certificates expire at the end of the CoS year. If you need to hire more people, you can request a higher allocation for the year, as long as you can justify the need.
Defined CoS
Defined CoS are used for workers applying from outside the UK. These are not part of an annual allocation. Instead, you request each one separately through SMS, submitting detailed job and salary data. The Home Office reviews each request before approval, usually within one or two working days.
Planning Your Allocations
Plan your allocation needs based on recruitment forecasts and staff turnover. Do not let your allocation run down to zero before making a request. Always double-check the SOC code, salary, and job description against the latest immigration rules before submitting defined CoS requests.
Assigning CoS in the SMS
Getting a Certificate of Sponsorship right in the Sponsorship Management System is critical for staying compliant and securing visa approvals. When using SMS to manage Certificates of Sponsorship, accuracy at every step prevents visa refusals and compliance issues.
| Item to Verify | What to Check |
| Worker Details | Name, nationality and passport details match HR records. |
| SOC Code | Correct occupation code selected and aligned with Appendix Skilled Occupations. |
| Salary | Meets the going rate and minimum salary thresholds for the role. |
| Job Description | Duties accurately reflect the chosen SOC code. |
| Work Location | Main work address and any hybrid pattern are correctly listed. |
| Contracted Hours | Hours match payroll and the employment contract. |
| Start Date | Realistic date within the 3-month CoS validity window. |
Key Data That Must Be Correct
Check that worker details, Standard Occupational Classification (SOC) code, job title, and main duties are crystal clear. Salary and contracted hours must reflect the real role, and work locations must be accurate. The start date and CoS expiry must line up with the worker’s visa timeline.
Timing Matters
You must choose a realistic start date because the CoS lasts only three months from assignment. The worker must apply for their visa within that window and get approval before the CoS runs out. Don’t assign CoS too early; unrealistic start dates just create problems you don’t need.
Final Checks Before Assignment
Before you assign any CoS, double-check everything against the employment contract and immigration rules. Mistakes here regularly cause visa refusals and compliance hits. Plenty of sponsors use pre-filled templates to cut down on data entry, but you should still review each CoS individually before you assign it, even if it came from a template.
Accuracy is non negotiable. A single incorrect detail on a CoS can lead to a refusal or trigger sponsor licence scrutiny.
Reporting Changes and Worker Activity in the Sponsorship Management System
Timely and accurate reporting in the Sponsorship Management System is one of the most important duties for a sponsor licence holder. Proper use gives confidence that your systems and records are up to date. Knowing how to use Sponsorship Management System UK for reporting ensures you meet all Home Office deadlines.
Business Changes
If your organisation changes its name, report this through SMS. The same applies if you change your registered office address or central trading location. Changes in ownership or corporate structure must be reported. This includes mergers, acquisitions and changes in shareholders or partners that result in new control of the business. For guidance on restructuring and role changes, ensure you understand your reporting obligations.
Personnel Changes
Changes to key personnel must be reported. If you appoint a new Authorising Officer, Key Contact or Level 1 user, notify the Home Office through SMS and wait for approval before the new person takes up their role. If the Authorising Officer, Key Contact or any Level 1 user is convicted of a relevant criminal offence, this must be reported immediately.
Business Model Changes
Significant changes in your business model that affect the types of roles you sponsor should be reported. The Home Office needs to know so they can assess whether your licence remains appropriate. If your organisation stops being a small business or charity, or starts meeting these criteria, report this within ten working days.
SMS Reporting Deadlines to Follow
You must report most worker-related changes within ten working days of the event. This is a strict deadline, and the Home Office does not accept excuses for late reporting. Some organisational changes have a twenty working-day reporting deadline. These include changes to the company name, ownership, structure or key personnel. The clock starts ticking from the date of the event itself, such as the last day of work or the date a new Authorising Officer is appointed.
| Deadline | What Must Be Reported |
| 10 working days | Salary changes, work location changes, job duty changes, long absences, early termination. |
| 20 working days | Company name change, ownership change, structural change, new key personnel appointments. |
| Immediate | Convictions of Level 1 users, cessation of sponsorship, serious compliance breaches. |
| Weekly check | Level 1 users should log in to review Home Office messages and pending tasks. |
Building a Reporting System
Build a reporting workflow where HR staff, line managers and anyone involved with sponsored workers know they must inform the Level 1 user immediately if a reportable event occurs. Use a compliance calendar, task management system or HR software to track reporting deadlines. When a reportable event occurs, log it immediately and set a reminder well before the deadline.
Keep an internal log of every report you make. Record the date of the event, the date of the report, what was reported and which user made the report. Check the SMS message board regularly. Level 1 users should log in at least weekly to review any new messages from the Home Office. Check the SMS message board regularly. Level 1 users should log in at least weekly to review any new messages from the Home Office.
Compliance and Audit Readiness for the Sponsorship Management System
SMS does not exist in isolation. It is part of a broader compliance framework that includes HR records, right to work checks, payroll data and internal policies. Use the Employer Checking Service to verify immigration status when needed.
Matching SMS and HR Records
Your information in the Sponsorship Management System must always match your HR files, payslips, right to work checks and attendance records. Any gap between the SMS and your internal documents signals a clear warning sign during an audit, so regular comparisons help you fix issues before they create problems. This includes ensuring compliance with UK work break regulations for your sponsored workers.
Internal Logs
It is important to keep simple internal logs showing who assigned a Certificate of Sponsorship, what changes were reported, when those changes were submitted and which user completed each action. These logs sit alongside the SMS audit trail and make it faster to review activity or answer Home Office questions.
Regular Internal Audits
Doing audits monthly or quarterly will ultimately compare sponsored worker files to payroll reports and SMS entries. These checks enable you to identify and rectify errors early rather than in a Home Office visit. A repeat cycle instils in-house confidence that the licence is properly being managed.
Licence Renewal Preparation
Sponsor licences usually need renewal every 10 years, and the renewal process is much easier when your SMS and internal records are already in strong condition. Before renewing, you should confirm that key personnel are correct, ensure every sponsored worker file is complete and clear any outstanding issues shown in the system. You can verify your sponsor licence number to ensure all details are accurate.
Integrating the Sponsorship Management System with HR Processes and Internal Systems
Bringing the Sponsorship Management System into your HR workflows and internal technology creates more efficiency and stronger compliance. Understanding how to use Sponsorship Management System UK within your broader HR ecosystem is a key aspect of SMS sponsor licence best practice.
Aligning HR Records with SMS Data
Your HR team must ensure that employment contracts, salary records and worker information are mirrored in the SMS. If your internal data and the SMS entries diverge, you increase the risk of errors, audit findings or licence enforcement.
Automating Alerts and Workflow Tasks
Integrate your HR system and SMS-related processes so that important events trigger alerts: CoS expiry dates, visa expiry, salary changes, absences or licence renewal deadlines. These automated checks reduce human error and help you stay ahead of regulatory duties.
Centralising User Access and Permissions
If your HR system is linked or synchronised with SMS access controls, you can maintain consistent user authorisations. Ensuring that only the correct people have Level 1 or Level 2 roles within the system keeps access secure and simplifies auditing.
Embedding Compliance Checks Within Recruitment
When you hire from overseas, weave SMS compliance triggers into your recruitment flow: right to work verification, role matching, SOC codes, salary floors, and pre-completed CoS templates. Building these checks in stops you from assigning wrong roles or omitting key data when you issue a CoS.
Reporting and Analytics as Part of HR Management
HR dashboards should pull in SMS metrics: number of active sponsored workers, pending change reports, user access status, CoS used and unused. Tracking these inside your own systems gives transparency and lets senior leaders review compliance alongside business metrics.
Advanced Tools and Options for High Volume Sponsors
Larger organisations and education providers face unique challenges when managing SMS. High volumes of sponsored workers require more sophisticated approaches. If you manage workers under a Temporary Worker Licence, you may need additional tools.
Bulk Data Transfer Options
The Home Office provides bulk upload tools for sponsors managing big pools of workers or students. These let you feed in structured data for many people at once. Bulk transfer is a lifeline for universities that need to issue Confirmations of Acceptance for Studies to hundreds or thousands of students ahead of each academic year.
Connecting Your HRIS
Look for ways to hook your HR information system into SMS workflows. While direct tech integration isn’t on offer yet, you can bridge the two systems using automated tasks and reminders. Set your HRIS to flag any change that touches sponsored workers—job title updates, pay rises, or location moves.
Centralised Document Storage
Create a secure digital location where all sponsorship-related documents are stored. This should include your sponsor licence certificate, copies of all Certificates of Sponsorship, audit letters from the Home Office and evidence of reports made through SMS. Centralised document management makes audits faster and less stressful.
Common Mistakes and Risk Areas in SMS Use
Even well-intentioned sponsors make mistakes. Understanding the most common pitfalls helps you avoid them.
Only One Level 1 User and No Backup
Relying on a single Level 1 user creates unnecessary risk. If they’re on holiday, off sick, or quit, you lose all access to assign CoS, file reports, or respond to Home Office messages. The Home Office expects resilience in key positions. Having at least two Level 1 users means someone can always step in.
Leaving Ex-Employees as Active Users
Not removing Level 1 or Level 2 users when they leave is a fundamental security failure. It opens the door to unauthorised access, data leaks, and misuse. The Home Office checks your SMS user list during compliance visits. Listing ex-employees as active raises serious doubts about your internal controls.
Choosing the Wrong SOC Code
Picking the wrong occupation code is a leading cause of visa refusals and compliance hits. If the SOC code doesn’t match the actual work, the visa application will likely fail. Always double-check the SOC code before assigning a CoS. Review the job description against the duties in Appendix Skilled Occupations to confirm the role.
Treating SMS as a Separate Admin Task
Many sponsors regard SMS as another piece of paperwork entirely separate from the usual HR workflow. Integrate SMS into your HR processes to make it a natural part of people management. SMS, being the responsibility of HR and line managers, reduces missed reports.
Missing Reporting Deadlines
The common practice of missing deadlines or late reporting is reviewed time and again in Home Office audits. This is a pointer to noncompliance. Set up systems to frustrate any attempts at missing deadlines. Keep task trackers where everyone can log their tasks, set auto-reminders, and establish escalation points to ensure reports come in on time.
Assigning CoS Without Checking Details
Issuing a Certificate of Sponsorship without verifying that salary and job details satisfy immigration rules is asking for trouble. Wrong information on the CoS can kill a visa application. Before you assign any CoS, confirm the salary meets the threshold, the job satisfies skill-level rules, and the description is accurate.
Ignoring the SMS Message Board
Level 1 users sometimes forget to check the SMS message board, missing important notes from the Home Office. These can include allocation renewal prompts, compliance warnings, or requests for information. Make board checks a weekly task. Log in at least once a week and scan for fresh messages.
No Internal Log of SMS Actions
Some sponsors rely purely on SMS to track activity. That makes internal audits harder and weakens your ability to prove to the Home Office what you’ve done. Keep an internal log that notes who assigned each CoS, what changes were reported, and which user took each action.
Timely reporting protects your licence. Missing a reporting deadline is one of the fastest ways to attract Home Office attention.
How A Y & J Supports Sponsors with SMS Setup and Management
At A Y & J Solicitors, we see the Sponsorship Management System as more than just another login. It’s a compliance-critical tool that needs careful setup, constant management, and regular review.
Reviewing Your SMS Setup
We run detailed reviews of your current SMS setup to ensure your Authorising Officer, Key Contact, and Level 1 or Level 2 users are properly appointed. We spot access gaps and give you practical fixes to tighten your controls.
Training Your Team
We deliver training built around the specific roles in your organisation. Authorising Officers get sessions on legal responsibilities and oversight. Level 1 users receive hands-on training in SMS navigation, correct CoS assignment, and hitting reporting deadlines.
Designing Internal Workflows
We are in collaboration with sponsors to trace the workflows defining relevant internal HR events to relevant SMS actions and deadlines. This also entails making process maps for when staff join, move roles or leave, triggering the right SMS step for each occurrence.
Conducting SMS Compliance Health Checks
We conduct SMS Compliance Health Checks that align SMS data with HR records, payroll, and worker files. These audits help you catch discrepancies, unreported changes and other compliance gaps before the Home Office finds them.
Supporting Renewals and Visits
When renewal comes due, or a compliance visit looms, we help you get ready. We audit your SMS history, confirm your documentation is complete, and make sure you can demonstrate solid compliance practice.
Regular audits and crosschecks between HR and SMS data are essential to maintaining a clean compliance record.
FAQ – Sponsorship Management System (SMS)
1. How do I log in to the Sponsorship Management System UK?
You log in using your Level 1 user credentials through the official Home Office portal. Access is restricted, so only approved users can log in and manage SMS functions.
2. What is the Sponsorship Management System, and who has to use it?
SMS is the online portal created by the Home Office for sponsors to manage their sponsor licence and meet all reporting duties. Any UK sponsor licence holder must use it.
3. What is a Level 1 user in the SMS, and what can they do?
A Level 1 user is allowed to conduct the day-to-day work, including assigning the CoS, updating the worker’s information, and filing a change report.
4. What is a Level 2 user, and how is their access different?
A Level 2 user is more restricted in access compared to a Level 1 user. They can work on limited tasks but cannot modify any core licence settings or user accounts.
5. What are the main things we must report in the SMS and by when?
Major changes such as salary changes, location changes, long absences, cessation of sponsorship, or change of status must be reported as soon as you become aware of them.
6. How do we request more Certificates of Sponsorship in the SMS?
Log in to SMS, select the CoS allocation task, state how many you need and why, then submit. Keep a buffer so you never run out. Most sponsors maintain at least 1–2 unused CoS to avoid delays in urgent recruitment cases.
7. What happens if we make a mistake on a CoS?
Incorrect CoS details can lead the Home Office to refuse the worker’s visa and put your licence under review. Correct the record and fix your internal process to prevent a repeat.
8. Can we share one login between team members if we have low volume?
No. Every user needs their own login. Shared accounts wreck audit trails, raise compliance risk, and breach good governance.
9. What are the risks if we do not update SMS when staff leave or change roles?
Failure to remove access for any user or to report changes in personnel can lead to unauthorised acts, audit failures, and potential sanctions on the licence.
10. How does SMS use affect our sponsor licence rating?
Your SMS activity is a key factor in how the Home Office rates your licence. Timely reports, accurate data, and clean audit logs help you keep your A-rating and avoid enforcement.
11. What is the SMS user manual, and where can I find it?
The SMS user manual is the official Home Office guidance (e.g., “User manuals: Sponsorship Management System”). You’ll find it on GOV.UK under the employer and education sponsor sections.
12. How often should we log in to the SMS?
At the very least, you should log in at least once a week in order to view alerts, pending work, consent audit of user access, and ensure that nothing is outstanding.
Take Control of Your SMS Compliance Journey
In summary, effective use of the SMS depends on accurate CoS entries, timely reporting and consistent alignment between HR records and the system. Mistakes, delays and poor practice in SMS use are among the most common reasons for licence downgrades, suspensions and revocations. If you want certainty that your organisation’s use of SMS is secure and audit-ready, book a call with A Y & J Solicitors. Our team can walk you through a clear SMS compliance roadmap, tailored to your business setup and sponsorship needs.
A Y & J Solicitors is a multi-award-winning, Legal 500 recognised immigration law firm with over 15 years of experience helping 5,000+ clients successfully navigate UK immigration. With a 4.9 rating on Trustpilot based on 1,000+ reviews, we are recognised leaders in sponsor licence compliance. As an SRA-regulated firm based in London, we provide expert guidance on all sponsor licence matters, from initial applications through compliance audits to licence renewals and Home Office challenge responses.
Last updated: 2025. This guide reflects the current UKVI sponsor licence and SMS requirements.
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!
