SPONSOR LICENCE
APPLICATION

If you’re a UK employer planning to hire workers from overseas, you must hold a valid Sponsor Licence. At Cromwell Wilkes, we guide businesses through the licence application, compliance process, and ongoing duties, ensuring you meet all Home Office requirements.

You need a sponsor licence if your organisation intends to:

• Employ non-UK or non-settled workers
• Sponsor Skilled Worker, Scale-up, or Senior/Specialist Workers
• Hire international employees for temporary or permanent roles
• Recruit international students (for educational institutions)
• Employers without a valid licence cannot legally hire overseas workers.

The UK Skilled Worker regime has tightened significantly in 2025.
The Home Office has narrowed sponsorship to higher-skilled, graduate-level roles, closing the door on many positions that were eligible for sponsorship only a year ago.

If your business plans to hire overseas staff, timing, role eligibility, and evidence quality are now critical.

In July 2025, the Home Office introduced major changes to the Skilled Worker route:

• The minimum skill level increased back to RQF Level 6 (degree level)
  
• 100+ occupation codes were removed from sponsorship eligibility
  
• Many previously eligible roles no longer qualify for new Skilled Worker visas

Roles that are now generally excluded include:

• Chefs and catering managers
  
• Bar and restaurant managers
  
• Dental nurses
  
• Teaching assistants
  
• Most RQF Level 3–5 roles
  
• Parts of the care sector
  

The direction of policy is clear:
UK sponsorship is being restricted to higher-skilled roles only.

• If you hire into non-graduate roles, your window is shrinking
  
• Transitional relief applies to some existing sponsored workers, but it is not indefinite
  
• Future tightening is likely
  

If overseas hiring matters to your business, action now is essential.

Currently documents that need to be presented must prove three mandatory pillars:

1. Lawful UK operation
   
   • UK-registered entity – evidence of incorporation
   • Genuine business activity & hiring – GOV registrations (PAYE, VAT, etc), employers insurances

1. UK trading presence
   
   • Usually evidenced through UK business bank statements, invoices, clients contract, billings
   • Overseas or parent company accounts are not accepted
   • Online banks are under more scrutiny than High street banks
2. Ability to pay Skilled Worker salaries
   
   • Minimum salary: £41,700, or the higher going rate (minimum amount may vary for new entrants and shortage occupation applicants – consultation is advisable for full confirmation)
   • Funds and forecasts must align with the role stated on the CoS

If any pillar is weak, the Home Office expects a clear, documented explanation.

Small sponsors must meet two out of three criteria:

• Annual turnover less than or equal to £10.2 million
• Total assets less than or equal to £5.1 million
• 50 employees or fewer

Once approved, your business is issued a unique Sponsor Licence Number. You can then issue Certificates of Sponsorship (CoS) to qualifying overseas workers:

• Defined CoS: For workers applying from outside the UK
• Undefined CoS: For candidates applying from within the UK

Each CoS costs £525, some CoS is £55 depending on the visa type.

All sponsor licence holders must nominate:

• Authorising Officer – senior manager responsible for the licence
• Key Contact – main Home Office liaison
• Level 1 User – manages the Sponsorship Management System
• Level 2 User – secondary system access (optional)

Personnel must be based in the UK, on payroll, unrelated to the sponsored worker, and free of unspent criminal convictions.

Sponsor licence holders must:

• Maintain accurate records and monitor employee absences
• Conduct right-to-work checks
• Update the Sponsorship Management System (SMS) 
• Report any material changes (e.g. job role, address, or salary)
• Cooperate with UKVI compliance officers during audits
• Failure to meet these obligations can lead to a downgrade, suspension, or licence revocation

Home Office officers can conduct announced or unannounced visits to assess:

• Your HR and reporting systems
• Your adherence to sponsor duties
• Whether your sponsored roles are genuine
• If you’re actively trading and lawfully operating

These errors cause the majority of refusals we see:

1. No clear UK trading evidence

Fix:
Submit UK bank statements and a bank confirmation letter if the account is under 18 months old.

2. Incorrect Authorising Officer

Fix:
The AO must be a senior UK-based employee or office-holder, not a contractor or external consultant.

3. Appendix A document overload

Fix:
Only submit required documents, clearly labelled and UK-focused.
Irrelevant or foreign documents weaken credibility.

4. Weak job suitability evidence

Fix:
For each role, show:

• Salary compliance
• Working hours
• Eligibility under the current Skilled Worker rules

A short role-specific evidence note is strongly recommended.

5. Contractors running the SMS

Fix:
At least one Level 1 user must be an employee, partner, or director.
External HR can be added only as supplementary users.

6. No monitoring systems

Fix:
Maintain simple, demonstrable systems for:

• Attendance and absences
  
• Contact details
  
• Role and salary changes

Screenshots stored as PDFs are acceptable for audits.

UKVI may carry out announced or unannounced compliance visits to assess:

• Whether your business is genuinely trading
  
• Whether sponsored roles are real and suitable
  
• Whether HR and reporting systems are effective
  

Preparation matters.
A well-organised “site-visit pack” often makes the difference between approval and refusal.

To sponsor a Skilled Worker today:

• The role must be graduate-level (RQF 6)
  
• The salary must usually meet £41,700 or the higher going rate (exemptions apply to New Entrants and Shortage Occupation list) 
• The role must appear on the current eligible occupation list
  

Do not rely on last year’s lists — many roles have been removed.

Sponsor Licence applications can be refused due to:

• Missing trading evidence
  
• Ineligible roles
  
• Salary misalignment
  
• Weak HR systems
  
• Failure to meet the genuineness test
  

A refusal usually triggers a 6-month cooling-off period.
Early review and corrective action are critical.

The UK sponsorship system is strict, and non-compliance risks are high. At Cromwell Wilkes, we help you apply with confidence and stay compliant for the long term. Whether you’re applying for the first time, adding new visa routes, or facing a compliance audit, our immigration lawyers will ensure your sponsor licence is handled expertly.
If you plan to launch, grow, or invest in the UK, expert legal support for your UK business visa application can make all the difference.

Contact us today for personalised legal advice and take the first step toward starting your Sponsor Licence in the UK.