A Sponsorship Licence (also known as a Sponsor Licence or a UK Sponsor Licence) is official permission granted by the UK Home Office to employers who want to hire skilled workers from outside the UK, including from the EU. With this licence, a business becomes an approved sponsor and can issue Certificates of Sponsorship (CoS) to eligible foreign workers. These workers can then apply for a Skilled Worker Visa or other work routes.
The Tier 2 Sponsor Licence is the predecessor. The Skilled Worker Sponsor Licence is the current version with the points-based immigration system. The Tier 2 Sponsor Licence was replaced in December 2020 with Skilled Worker Sponsor Licence.
Beyond legal compliance, holding a sponsor licence provides access to skilled shortage occupation lists, improves staff retention by offering international employees a clear pathway to UK residency, and enables global scaling opportunities by tapping into worldwide talent markets. At A Y & J Solicitors, we call this the gateway licence for businesses seeking global talent. It's important for any UK business that wants to hire people from around the world legally and properly.
The UK Home Office offers two main types of sponsorship licences to employers who wish to sponsor non-UK workers or temporary migrants. Each permits different types of migrant employment.
Common Confusion: The Scale-Up Worker visa CANNOT be sponsored with a sponsor licence. Businesses need a Worker SponsorLicence to hire scale-up workers.
Most business owners and professional people do want to know the critical difference between the UK sponsor licence application and the Self-sponsorship route. The two immigration processes confuse people so a simple comparison is given below:
At A Y & J Solicitors, we routinely advise clients on these two immigration applications. The choice of the right one depends on the specific goals, whether expanding a company's workforce in the UK or moving to the UK to set up one's business.
To hire anyone who doesn't already have settled status or a valid right to work in the UK, your organisation must apply for sponsor licence. This rule applies to all employers, big or small, no matter how many overseas staff you bring on.
Multinational companies hiring skilled global talent
Small and medium businesses seeking niche expertise
Universities and colleges sponsoring academic staff and researchers
NGOS employing specialists from abroad
Companies that don't need a licence include those that only hire:
A lot of digital nomads and freelancers believe this is true. You can't get a UK sponsor licence to sponsor yourself. Only real employers who want to hire people can get sponsor licenses. Self-employed people can't get them. If you work for yourself, look into other options like the Self-Sponsorship or the Innovator Founder visa.
Skilled Worker Route: Hire Indian software developers, recruit Filipino nurses, sponsor Canadian marketing managers
Government Authorised Exchange: Sponsor global interns, host international researchers, facilitate cultural exchange programs
Temporary Worker Routes: Hire seasonal agricultural workers, sponsor short-term entertainers, recruit charity volunteers
Your choice of sponsor licence hinges on the nature of the role you're offering and your organisation's ability to satisfy the route's criteria. For instance, if you wish to hire under the Skilled Worker route, you must hold a Skilled Worker sponsor licence. That means you need to provide genuine employment that meets the route's prescribed skill level and minimum salary thresholds. Once you assign a valid Certificate of Sponsorship, the candidate becomes eligible to apply for a Skilled Worker visa. This route serves as the main avenue for UK employers to recruit skilled talent from overseas.
Many sectors in the United Kingdom rely significantly on overseas talent to fill vacancies. In fact, healthcare makes up over 1/3rd of Skilled Workers visa grants, while IT, engineering, and finance are some of the major sectors creating demand for sponsor licences. In these sectors, getting a sponsor licence is integral to their recruitment schemes.
Companies hiring software developers and IT professionals — As per the official government sets of data, the IT sector is always in the high-three sponsored occupations.
Demand for foreign toctors, nurses, and medical staff — Since 2020, there have been over 50,000 overseas healthcare workers hired by the NHS under a sponsor licence.
Institutions attracting global financial talent — There is a great demand for civil engineers, project managers and other professionals in the construction field with special skills.
Hotels and restaurants hiring skilled staff — This is especially true for jobs as a chefs or in senior hospitality management.
Institutions attracting global financial talent — A lot of big banks and fintech companies use sponsor licenses all the time.
Universities employing international academics — The most recognised group of sponsor-license users includes academic institutions.
Top Industries: According to the government, Healthcare & Medical Services, Information Technology & Software, and Financial Services & Banking are the top three industries with the most sponsor licence holders. These industries are generally easier to get sponsorship in because there are already established pathways and a high demand for skilled workers.
As a multi-award-winning, SRA-regulated law firm recommended by The Legal 500 with over a decade of specialised immigration experience, we create the gold standard and benchmark in expertise, authority, and credibility to get the desired results. Moreover, this result driven approach has created an overall record of 5,000+ successful immigration and visa applications, enabling the companies and individuals to be confident that their visa process is in experienced hands committed to their success.
To be eligible for a UK Sponsor Licence in 2025, your business must meet specific Home Office criteria. Below are the key Sponsor Licence requirements UK you must fulfil before applying.
Your organisation must be a genuine UK trading entity, backed by Companies House registration and evidence of commercial activity (for example, invoices, contracts or bank statements). An important exception applies to the UK Expansion Worker (GBM) route: sponsors under that scheme must not already maintain an active trading presence in the UK.
Another sponsor licence eligibility criteria is that the role must be a real vacancy at RQF level 3 or above (or the relevant threshold for other licences) that cannot be filled from the resident labour market.
You must pay the sponsored worker at least the published "going rate" or general salary threshold and show capacity to meet payroll (e.g. payslips, audited accounts).
Maintain clear records of recruitment efforts and job adverts to demonstrate that suitable settled workers were considered before sponsoring.
Use the Home Office's Sponsorship Management System (SMS) and appoint an Authorising Officer, Key Contact and Level 1 Users to manage Certificates of Sponsorship and compliance.
Maintain comprehensive records of sponsored workers for at least six years and notify the Home Office of any key changes-start dates, absences, salary adjustments or terminations-within the required deadlines to remain audit‑ready. Sponsors must also have no unspent convictions for immigration offences or serious crimes such as fraud or money laundering.
To keep your sponsor licence status, it's important to know what your ongoing compliance obligations are. The table below shows exactly what the Home Office wants from sponsors:
You must provide a minimum of 4 documents from Appendix A to meet Home Office requirements. Missing any mandatory sponsor licence supporting documents will result in application delays or refusal. Here's a concise, at‑a‑glance overview of Section D in a visual table:
Appendix A & Mandatory (min 4 items)
DO NOT MISS THESE DOCUMENTS: Employers often forget to include their employer's liability insurance certificate and proof of premises documentation (lease agreement or property ownership papers) because of common mistakes on applications. Also, make sure that your HMRC PAYE registration is clearly written down. These three things are some of the most common reasons why applications are delayed when they are not included.
Here's a concise, at‑a‑glance overview of Section D in a visual table:
Our sponsor licence solicitors can guide you through every part of the sponsor licence requirements UK. This is a simple guide on how to get a sponsor licence.
Check that your business meets all UK sponsor licence rules. You need valid registration in the UK, HR systems to track sponsored workers, and key staff assigned to manage the process.
Collect proof of your company’s legitimacy and finances. Typical items include your Certificate of Incorporation, audited accounts, employer’s liability insurance, VAT registration, bank statements, HMRC evidence and premises proof. Preparing documents in advance is the #1 reason for faster approval.
Log into the Home Office Sponsorship Management System. Choose the right licence type, fill in your company details, name your Authorising Officer, Key Contact and Level 1 User, and list the documents you’ll submit.
In the sponsor management system (SMS) you’ll see the cost of a skilled Sponsor Licence for small sponsors ( £574 ) or large sponsors ( £1,579 ). Make your payment there to move forward with your UK sponsor licence application.
When you are submitting, only your Authorising Officer can click submit. Download the submission sheet it generates and keep it safe with your other UK sponsor licence records.
Send all your PDFs to the Home Office within 5 days of submission. This is one of the major failure points which result in rejection of the applications. Preparing your pack well in advance will help you meet the deadline without you going through a last-minute rush.
Decisions usually take up to eight weeks, but you'll be getting a confirmation notice to keep in the file. For an additional £500, the Sponsor Licence Priority Service guarantees a decision in ten working days.
The Home Office may come on site or might conduct a virtual check. They will review your systems and paperwork to see if you can manage the sponsored workers properly.
Once approved, you’ll join the Register of Licensed Sponsors. You can then legally recruit international workers with the new sponsor licence number. Use this guide to know how to check your sponsor licence number.
Enjoy a hassle-free process and avoid delays. Focus on growing your business.
Employers are the only ones eligible to apply for a UK Sponsor Licence, but the process does have an impact on employees. Many prospective employees will ask about its implications for them from the employee-facing perspective, which is as follows:
A UK Sponsor Licence can only be applied for by employers. Employees then apply for their visas using the Certificate of Sponsorship (CoS).
You can sponsor people under three main routes: the Skilled Worker visa (that includes Health & Care staff), the short-term Temporary Worker visas, and the Global Business Mobility schemes.
The company pays for a licence fee, CoS fee, and Immigration Skills Charge, while employees are responsible for their visa fee, Immigration Health Surcharge, and personal costs like the English test or TB test.
Once you are given a Certificate of Sponsorship (CoS), you’re in charge of preparing the correct paperwork, lodging your own visa application with that CoS number, and then living by the visa rules once you land in the UK.
After the CoS is issued, expect a decision in about three weeks if you’re applying from abroad, or up to eight weeks if you’re already here. Need it faster? Priority processing is available for a fee.
Here are the timings and requirements for a UK sponsor licence application and related visa steps.
| Stage / Factor | Standard Timeline | Expedited Option & Notes |
| Licence application processing | Up to 8 weeks (gov.uk) | - |
| Pre-licence priority service | Decision within 10 working days (gov.uk) | £500 fee; limited daily slots |
| Pre-licence compliance visit | UKVI may visit your premises (no set timeframe) (gov.uk) | Visits are more common for higher-risk sectors; timeline varies by case |
| Supporting documents submission | Priority: within 5 working days of fee payment (gov.uk) Standard: send promptly after application | Late or missing documents risk outright rejection |
| Skilled Worker visa (overseas) | Decision within 3 weeks (gov.uk) | Priority service: 5 working days Super priority: next working day (gov.uk,) |
| Skilled Worker visa (in-country) | Decision within 8 weeks (gov.uk) | Priority service: 5 working days Super priority: next working day (gov.uk) |
These extraordinary circumstances usually influence the standard processing period of your application:
The following are the sponsor licence fees UK updated as of 2025:
| Fee Type | Eligibility / Description | Fee (from 9 April 2025) |
| Small sponsor licence application | Charitable status or small companies regime (meets at least two of: turnover ≤ £10.2 m; balance sheet ≤ £5.1 m; ≤ 50 employees) | £574 |
| Student sponsor licence | £574 | |
| Temporary Worker sponsor licence | £574 | |
| Worker & Temporary Worker sponsor licence- large sponsor | £1,579 | |
| Worker & Student sponsor licence- large sponsor | £1,579 | |
| Worker, Temporary Worker & Student sponsor licence- large sponsor | £1,579 | |
| Temporary Worker & Student sponsor licence | £574 | |
| Worker sponsor licence- large sponsor (already holds Temporary Worker/Student licence) | Reduced rate where you already hold a Temporary Worker or Student sponsor licence | £1,005 |
The employer/sponsor is always responsible for the application fee. This cost will only need to be incurred once at the time of application. Starting April 6, 2024, no sponsor licence will require renewal, and licenses will automatically renew every 10 years.
Cost-saving tip: Small sponsors and charities pay significantly reduced Certificates of Sponsorship (CoS) fees compared to large sponsors.
| CoS Type | Description | Fee |
| Certificate of Sponsorship (Skilled Worker, T2 Minister of Religion, GBL Senior/Specialist) | Assigning a CoS under the Skilled Worker, Minister of Religion, or Global Business Mobility senior/specialist routes | £525 |
| Certificate of Sponsorship (Temporary Worker & similar routes) | Assigning a CoS for Temporary Worker, Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker, and Scale-up Worker routes | £55 |
| Certificate of Sponsorship (International Sportsperson Visa - over 12 months) | Assigning a CoS for International Sportsperson roles longer than 12 months | £525 |
| Certificate of Sponsorship (International Sportsperson visa - up to 12 months) | Assigning a CoS for International Sportsperson roles of 12 months or less | £55 |
| onfirmation of Acceptance for Studies (CAS) | Issue of CAS for Student and Child Student routes | £55 |
| Immigration Skills Charge (Skilled Worker) | Per worker, per year; standard £1,000 / reduced £364 for small sponsors & charities | £1,000 / £364 |
The employer typically pays for the CoS fee. However, some employers may require that the cost be reimbursed by the worker. Each CoS is a one-time cost for the sponsored worker and must be assigned every time a new worker is sponsored.
| Service | Description | Fee |
| Priority service for sponsor licence applications | Decision within ten working days | £500 |
| Premium Sponsor Service (12 months)- Worker & Temporary Worker (large sponsors) | Fast‐track licence processing | £25,000 |
| Premium Sponsor Service (12 months)- Worker & Temporary Worker (small sponsors) | Fast‐track licence processing | £8,000 |
| Premium Sponsor Service (12 months)- Student sponsors | Fast‐track licence processing | £8,000 |
| Expedited sponsorship management request | For Worker or Temporary Worker sponsors | £200 |
| Student sponsor basic compliance assessment | Optional compliance check prior to licence grant | £574 |
| Sponsor action plan | Plan outlining steps to remedy compliance issues | £1,579 |
These are the fees that an employer/sponsor must incur. The majority of them are one-time, except for the Premium Sponsor Service, which is paid annually.
The average all-in first-year cost ranges from £3,500 to £8,000, depending on business size, legal complexity, and whether priority services are used.
When a UK business is granted a Sponsor Licence, the Home Office assigns a rating that shows how well it meets its duties under UK immigration law. There are two main ratings:
| Aspect | A-Rating | B-Rating |
| Ability to Sponsor New Workers | Yes | No |
| Monitoring by Home Office | Standard checks | Increased scrutiny and an Action Plan |
| Action Plan Required | No | Yes |
| Consequences of Non-Compliance | Warning or downgrade | Possible suspension or revocation |
| Licence Privileges | Full sponsorship rights | Limited until improvements are made |
An A-Rating shows your business meets all Home Office requirements. You can assign Certificates of Sponsorship, manage your sponsored workers and face only standard compliance checks.
Keep accurate records, report changes quickly and maintain strong HR systems to stay on top of your Sponsor Licence Duties.
A B-Rating means the Home Office has concerns about your compliance. You must follow an Action Plan and fix issues before you can sponsor new workers. Minor breaches such as late reporting of worker changes, missing records, or inadequate HR systems can lead to downgrades from A-rating to B-rating.
Complete the plan on time to regain an A-Rating. Missing deadlines could lead to the sponsor licence being suspended.
A B-Rating means no new hires until you regain compliance. This means new Certificates of Sponsorship can no longer be issued, thus effectively freezing the international recruitment of any new workers until the restoration of your rating.
The path to recovering a B-rating denotes systematic improvements to compliance and careful observance of Home Office requirements. Further, expert legal advice often significantly shortens the time frame for recovery.
All items under your Home Office Action Plan must be completed within the stipulated time frames - robust HR systems must be in place, and key personnel must receive satisfactory training in sponsor duties. Timeline: 1-3 months
A set of documents must be prepared to verify the compliance improvements you have made, including the new policies and evidence of monitoring of sponsored workers. Timeline: 2-4 weeks
The Home Office now assesses your compliance improvement changes through a thorough review and perhaps compliance visits to evaluate whether your remedial actions justify restoration of your rating. Timeline: 4-8 weeks, with recovery usually taking 3-6 months in total.
When you submit your UK sponsor licence application, you agree to follow a set of duties designed to prevent illegal working. These rules ensure you keep accurate, up-to-date records that the Home Office can review at any time. Meeting these obligations is a core part of any successful sponsorship licence application.
Maintain complete files for each sponsored worker. This includes right-to-work checks, passport and immigration status documents, NI (National Insurance) number, employment contracts and contact details. Keep past and current records so you can demonstrate compliance at any inspection. Missing or incomplete records are the leading cause of sponsor licence downgrades.
These three duties cause the most compliance failures - get these right to avoid rating downgrades:
| Critical Duty | Key Requirement |
| Report Worker Absences | Inform the Home Office of any unauthorised absence within the relevant time limits. |
| Keep HR Records | Maintain very detailed files for all sponsored employees with all the documentation. |
| Notify Changes | Immediately notify the Home Office via the SMS system of any changes in address or personnel. |
The process to apply for sponsor licence can be complex without a robust HRMS. However, we make it simple. You can maximise compliance and efficiency with our cutting-edge HRMS. You get yours absolutely free when you hire us for your home office sponsor licence application. Now, let us take a look at what our powerful HRMS offers:
In Appendix Skilled Worker, find the re- levant SOC code for your job role.
Search by job title to identify potential SOC codes.
Compare the code with Home Office Appendix to confirm Check that the accuracy.
Check that the role is at the required minimum level.
Use the ONS coding tool for unsure matches
Avoid copying example job tasks verbatim
Marketing Manager → Correct: SOC 3545 – Marketing Associate Professionals
Common mistake: Putting it under SOC 1132 – Sales Managers and Directors
IT Business Analyst → Correct: SOC 2423 – Management Consultants and Business Analysts
Common mistake: Classifying under SOC 2136 – Programmers and Software Developers
HR Manager → Correct: SOC 1135 – Human Resource Managers and Directors
Common mistake: Listing as SOC 3562 – Human Resource Officers (too junior)
Financial Controller → Correct: SOC 1131 – Financial Managers and Directors
Common mistake: Misfiled as SOC 2421 – Chartered and Certified Accountants
Chef → Correct: SOC 5434 – Chefs
Common mistake: Using SOC 5436 – Catering and Bar Managers (a different occupation entirely)
You must assign a Certificate of Sponsorship (CoS) to every foreign worker you employ. It's an electronic record, not a paper document, and each CoS has its own reference number that the worker uses when they apply for their visa. Once you assign a CoS, the worker must use it to apply for their visa within three months and no more than three months before the job's start date (gov.uk).
Job refusals are often primarily caused by poorly drafted job descriptions or differences between job description and duties, especially where the SOC code does not match the role.
Poorly drafted HR policies, bad SMS logs, and document retention usually raise flags during compliance visits and can often lead to the non-approval of applications.
Failing to fully complete all fields or submitting mismatched information causes immediate refusals.
Omitting key proofs (e.g., business registration, financial records) leads to delays or outright rejections.
Sponsoring roles below RQF level 3 or paying below the published "going rate" breaches Home Office requirements.
Not keeping clear records of job adverts and candidate assessments undermines claims of a genuine vacancy.
Missing deadlines for additional information requests can result in your application being withdrawn.
Lacking up-to-date HR policies, SMS logs and document retention exposes you to compliance visit failures.
We at A Y & J Solicitors have saved over 100 applications stuck due to incomplete documentation. It is our practice to check every detail beforehand so that your application is accurate, compliant, and ready for submission.We offer comprehensive sponsor licence guidance for employers from the first consultation.
This is a common question asked by many employers right after they receive an approved sponsor licence: What next?
Issuing the Certificates of Sponsorship
The first thing is to request and assign Certificates of Sponsorship to overseas workers that you want to recruit. Each worker must have a valid CoS before they can apply for their Skilled Worker visa.
Recruitment Process
Now that the licence is in place, one can advertise for jobs, interview candidates, and sponsor eligible workers. Be careful to have job descriptions and salaries in accordance with the Home Office rules.
Remain Compliant
The other side of compliance starts once you get the approval. You have to keep your HR system up to date, maintain records on all sponsored workers, and report changes through the Sponsorship Management System. Many firms create a compliance calendar to track their reporting duties, visa expiry dates, and record-keeping checks.
At A Y & J Solicitors, we will assist employers in the above steps to make sure that a new licence quickly translates into successful recruitment while fully compliant.
A UK sponsor licence (formerly known as Tier 2 licence) is an authorisation issued by the Home Office that lets a UK business recruit and sponsor overseas workers under routes such as the Skilled Worker and Global Business Mobility categories. With a sponsor licence, you can assign a Certificate of Sponsorship (CoS) to skilled migrants so they can apply for their visa.
A Y & J solicitors specialises in guiding organisations through the sponsor licence process, from application to ongoing compliance.
At A Y & J Solicitors, we specialise in UK immigration law and have guided over 5,000 business owners and professionals worldwide through the British system. We pride ourselves on fast, clear communication, responding to all queries within 24 working hours. Our close working relationship with the Home Office means we can spot and resolve potential issues before they affect your sponsor licence application or compliance. From skilled worker visas under the points-based system to Indefinite Leave to Remain, spouse visas, nationality applications and more, we manage every aspect of UK immigration. We also take on complex appeals, administrative and judicial reviews, and cases involving EU law and human rights.
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