Key Takeaways
- To sponsor a Skilled Worker visa in the UK, your business must hold a sponsor licence granted by the Home Office.
- From 8 April 2026, licensed sponsors must ensure sponsored workers are paid the required minimum salary in each individual pay period, not just as an annual average.
- Sponsor licence application fees increased from 8 April 2026: small and charitable sponsors pay £611, medium and large sponsors pay £1,682.
- Once licensed, sponsors must maintain compliance through record-keeping, reporting changes and cooperating with Home Office audit visits.
If your business wants to recruit a worker from outside the UK on a Skilled Worker visa, you need to hold a sponsor licence before you can make a job offer. Without it, you cannot issue a Certificate of Sponsorship and the worker cannot apply for their visa.
This article explains what a sponsor licence is, the requirements for obtaining one and the ongoing duties that come with it. Several significant changes came into force in April 2026. Our UK immigration solicitors at Osbourne Pinner offer a free 30-minute consultation and can advise on your business’s specific position.
What Is a Sponsor Licence?
A sponsor licence is a permission granted by the Home Office that allows a UK employer to sponsor overseas workers under the points-based immigration system. For Skilled Worker visas, a sponsor licence is a prerequisite. Without one, you cannot legally employ someone who requires that visa route.
Once licensed, your business is added to the Home Office register of sponsors. Prospective employees can search this register when considering job offers. Licence holders are given access to the Sponsor Management System (SMS), through which they assign Certificates of Sponsorship and manage their obligations.
Who Can Apply for a Sponsor Licence?
Any UK-based business that is genuine, legally operating and can demonstrate it needs to recruit overseas workers can apply. The Home Office assesses applications against several criteria. It looks at whether the business is established in the UK, whether the roles it wants to sponsor are real and whether the business has appropriate HR systems to meet its ongoing compliance duties.
Businesses with a history of immigration non-compliance, unspent criminal convictions for certain offences or outstanding civil penalties will face additional scrutiny or may be refused.
The Application Process
Applications are made online through the Home Office portal. You will need to nominate key personnel to hold roles within the sponsorship system, including an Authorising Officer, a Key Contact and a Level 1 User. These individuals take on personal responsibility for compliance.
Supporting documents must be submitted alongside the application. Typical requirements include evidence of your business’s legal existence (such as incorporation documents or HMRC registration), proof of your business premises and evidence of trading activity. The Home Office may conduct a pre-licence site visit before deciding the application.
Sponsor Licence Fees From April 2026
Licence application fees increased from 8 April 2026. Small sponsors and charitable organisations pay £611. Medium and large sponsors pay £1,682. Your business size is determined by your number of employees, annual turnover and balance sheet total in line with Companies Act definitions.
The Key Change From April 2026: Per-Period Salary Compliance
One of the most significant compliance changes of 2026 applies to all Certificates of Sponsorship issued on or after 8 April 2026. Under the previous rules, sponsors could rely on annual salary calculations to demonstrate compliance with the minimum salary threshold. From April 2026, the salary threshold must be met in each individual pay period.
This means that if a sponsored worker is paid monthly, their pay in each month must meet the required threshold on its own. Averaging across the year to compensate for a low month is no longer permitted. Businesses with irregular pay structures, those using salary sacrifice arrangements or those that vary hours significantly between pay periods should review their payroll processes carefully.
See also: UK’s New Skilled Worker Salary Thresholds Explained
Ongoing Compliance Duties for Sponsors
Holding a licence is not a one-time exercise. The Home Office expects sponsors to maintain compliance continuously. Key duties include:
- Keeping records of sponsored workers, including passport copies, contact details, work location and salary.
- Reporting changes through the SMS within 10 working days. This includes if a worker does not start, leaves the job, changes their role significantly or has a change in salary.
- Carrying out right to work checks before employment begins and keeping evidence of those checks.
- Cooperating with the Home Office, including during announced or unannounced compliance visits.
Failure to maintain compliance can result in the licence being suspended, downgraded or revoked. A revoked licence cannot be reapplied for within 12 months and carries serious consequences for any sponsored workers currently employed.
Related: Revoked Sponsor Licence: What to Do
Speak to an Immigration Solicitor about Your Sponsor Licence
Applying for a sponsor licence and maintaining compliance with the Home Office’s requirements is more demanding than many businesses expect. The April 2026 changes to salary compliance add a further layer of complexity. Getting the application right and keeping the licence in good standing requires proper systems and ongoing attention.
At Osbourne Pinner, our skilled worker sponsor licence solicitors help businesses apply for and maintain their licences. We can prepare your application, advise on the personnel and HR systems you need to have in place and support you through any compliance issues that arise.
Please note that this article is for informational purposes only and does not constitute legal advice. We always recommend speaking to a qualified solicitor for advice tailored to your specific circumstances.
We offer a free 30-minute consultation to discuss your situation. You can speak with us via video call or visit our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester. To arrange your consultation, call 0203 983 5080, email [email protected] or complete the form below.
