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.
What a sponsor licence is
A Sponsor Licence (formerly known as a Tier 2 Sponsor Licence) allows UK-based employers and educational institutions to sponsor non-UK nationals for work or study lawfully. Once approved, your business can issue Certificates of Sponsorship (CoS) for eligible employees, enabling them to apply for work visas like the Skilled Worker Visa.
Sponsor licences are now valid for 10 years from April 2024, removing the previous 4-year renewal requirement. However, licences set to expire before 6 April 2024 must still follow the old renewal process.
Skilled Worker rules, July 2025
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.
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 overseas hiring matters to your business, action now is essential.
What the Home Office will weigh
Currently documents that need to be presented must prove three mandatory pillars:
Lawful UK operation
UK-registered entity - evidence of incorporation. Genuine business activity & hiring - GOV registrations (PAYE, VAT, etc), employers insurances.
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.
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.
Who runs the licence, and its duties
All sponsor licence holders must nominate:
Who runs it
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).
Ongoing duties
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.
The errors behind most refusals
These errors cause the majority of refusals we see:
No clear UK trading evidence
Fix: Submit UK bank statements and a bank confirmation letter if the account is under 18 months old.
Incorrect Authorising Officer
Fix: The AO must be a senior UK-based employee or office-holder, not a contractor or external consultant.
Appendix A document overload
Fix: Only submit required documents, clearly labelled and UK-focused. Irrelevant or foreign documents weaken credibility.
Weak job suitability evidence
Fix: For each role, show salary compliance, working hours, and eligibility under the current Skilled Worker rules. A short role-specific evidence note is strongly recommended.
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.
No monitoring systems
Fix: Maintain simple, demonstrable systems for attendance and absences, contact details, and role and salary changes. Screenshots stored as PDFs are acceptable for audits.
What it costs to instruct us
Fixed fees, plus VAT. The right package depends on how many workers you plan to sponsor.
Basic
Sponsor Licence application.
Standard - 1 worker
Sponsor Licence application. 1 Certificate of Sponsorship. 1 visa case in the first 12 months.
Standard - 2 workers
Sponsor Licence application. 2 Certificates of Sponsorship. 2 visa cases in the first 12 months.
Standard - 3 workers
Sponsor Licence application. 3 Certificates of Sponsorship. 3 visa cases in the first 12 months.
Priority
Sponsor Licence application. Unlimited Certificates of Sponsorship. Unlimited visa cases in the first 12 months. 1 year general advice retainer.
Charity / CIC / Trust
Sponsor Licence application. Certificates of Sponsorship by individual offer. Visa cases by individual offer.
Frequently asked
Instruct Cromwell Wilkes
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. A first application, a new visa route, or a compliance audit, our immigration lawyers will ensure your sponsor licence is handled expertly.
Contact us today for personalised legal advice and take the first step toward starting your Sponsor Licence in the UK.
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