Your time is precious in many ways. We can prepare Sponsored Worker applications quickly and smoothly for. Allowing a solicitor to do this work means you can carry on with filling vacancies with sponsored workers more efficiently – we have an exceptionally high rate of licence approval.
Aside from simply obtaining the licence, you really need to understand how sponsorship works and what is expected of you. Whilst it’s possible to get a licence without fully understanding the system, this could lead to you becoming unstuck later if/when the Home Office gets round to auditing you.
At Truth Legal, we don’t just get the licence for you, we ensure sure you properly understand how sponsorship works and help you to avoid any painful issues with the Home Office. Whist our main piece of work might be getting you a licence, we are with you throughout your sponsor licence journey, always there for you.
Despite being national leaders in sponsor licence work, we know we are considerably less expensive than many firms. If you’d like us on board, start the process now with a free consultation.
What is a Skilled Worker Sponsor Licence?
The Skilled Worker Sponsor Licence is essential for UK businesses aiming to recruit skilled workers from overseas. Whether you’re struggling to find local talent with the right expertise or looking to expand your workforce, this licence allows you to hire internationally and fill those crucial gaps. It’s not just about meeting immigration rules; it’s about accessing the skills needed to keep your business competitive and sustainable.
Why a Certificate of Sponsorship (CoS) Matters
Think of the CoS as your official stamp of approval that verifies a job offer for an overseas worker. Each one is tied to a specific individual and job, containing details about the role and salary. There are two types: defined CoS (for workers applying from outside the UK) and undefined CoS (for workers already in the UK). The key is to get the details right—any mistakes can cause delays in visa processing, costing you time and potentially impacting your reputation.
Are You Eligible for a Skilled Worker Licence?
Before diving into the application, it’s important to check whether your business ticks all the right boxes. Your company must be actively trading in the UK and have a clean history regarding legal matters, particularly immigration. It’s not enough to be a legitimate business; you also need to prove you’ve got reliable HR systems to manage sponsored workers. This might include policies for record-keeping, monitoring employees’ immigration status, and reporting changes to the Home Office.
If your business is relatively new or has had previous compliance issues, consider taking extra steps to show you’ve made improvements or have systems in place to prevent future problems. The more you can demonstrate your readiness, the smoother your application process will likely be.
How do I Apply for a Skilled Worker Licence?
Applying for a Skilled Worker Sponsor Licence involves more than just filling out a form.
Step 1:
First, head over to the ‘Apply for a Sponsor Licence’ pages on gov.uk and complete your application. You’ll need to submit various documents, including proof of business operations (like bank statements and VAT registration) and a cover letter that outlines why you need the licence and what roles you plan to fill.
Step 2:
Next, designate key staff members for certain roles. This includes the Authorising Officer, who ensures the company meets its responsibilities, and the Level 1 User, who manages the day-to-day functions within the SMS. These roles must be filled by individuals who understand their duties because errors here can cost you the licence.
Step 3:
Expect the process to take up to eight weeks, but if your application is audited, it could take longer. For faster processing, double-check everything is in order before submitting. If you’re a smaller or charitable organisation, you may also qualify for a reduced application fee.
Roles and Responsibilities for Sponsorship
Managing a Skilled Worker Sponsor Licence involves more than just assigning someone to handle the paperwork. The Authorising Officer must not only know the rules but also actively ensure the business is meeting them. This person is responsible for the behaviour of everyone else who uses the SMS, so it’s not a role to take lightly.
Meanwhile, the Level 1 User should be on top of day-to-day tasks, such as issuing Certificates of Sponsorship (CoS) and updating worker records. Make sure these roles are filled by people who are not only reliable but also well-trained in the sponsorship requirements. Compliance is key, and failure to stick to the rules can lead to serious consequences.
Navigating the Points-Based System
The UK’s points-based immigration system sets specific criteria for Skilled Worker Visas. To qualify, workers need at least 70 points, which they can earn based on factors such as a valid job offer, meeting skill and salary thresholds, and English language proficiency. Employers should pay attention to the exact requirements for each role to ensure they’re offering positions that meet these standards.
For example, if your role is on the shortage occupation list or the salary exceeds a certain threshold, additional points can be earned. This flexibility can help businesses bring in top international talent while complying with the Home Office’s guidelines.
Keeping Up with Compliance Obligations
Compliance isn’t a one-and-done task—it’s ongoing. Once you’ve secured your licence, you’re responsible for keeping accurate records of all sponsored employees. This includes holding copies of passports, visa documents, and relevant qualifications. You also need to report any significant changes to the Home Office. For instance, if a sponsored worker doesn’t start their job, goes missing, or if the business relocates, it must be reported immediately.
To stay ahead, conduct regular reviews of your processes. Even if everything appears to be running smoothly, make it a habit to audit your compliance measures to ensure you’re meeting the Home Office’s standards. This not only helps avoid penalties but also ensures you’re ready if an unexpected inspection occurs.
Can I Sponsor a Family Member Under a Home Office Sponsor Licence?
We are often approached by individuals involved with the running of a business, wanting to know whether their company can sponsor a family member under a sponsor licence. Most commonly this would be under a Skilled Worker sponsor licence, until recently known as a Tier 2 sponsor licence.
The short answer is ‘Yes, it may be possible to sponsor a family member, but you will need to be able to make key adjustments. And you can expect closer scrutiny by the Home Office.
Here are what are in my view the key considerations and adjustments you will need in place if you want to sponsor a family member.
A level 1 or 2 user cannot assign a certificate of sponsorship to a family member
It is not prohibited to sponsor a family member of someone already involved with the running of your business. However, they have put a specific restriction on a Level 1 User or a Level 2 assigning a certificate of sponsorship to their own family member.
The Home Office has a wide definition of a family member. It covers:
- a spouse, civil partner or unmarried or same-sex partner
- a parent or step-parent
- a son or step-son
- a daughter or step-daughter
- a brother, step-brother or half-brother
- a sister, step-sister or half-sister
- a nephew, niece, cousin, aunt or uncle. father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law
This prohibition on assigning a certificate of sponsorship is less likely to be a problem in larger businesses, where someone who is not the family member is more likely to be able to assume the role of the Level 1 User.
Bear in mind that there is no prohibition on having a Level 1 User who is related to the sponsored migrant per se. There is just a specific restriction on a family member undertaking the act of assigning the certificate of sponsorship (and there is a separate duty to disclose the family relationship to the Home Office, as explained below).
Ideally, keep the relative well-away from the position of Level 1 or 2 User, but again, remember you will still need to disclose to the Home Office the family relationship, see below. Alternatively, you could appoint a second Level or 2 User to undertake the specific act of assigning the certificate.
In small businesses, however, there may not be any other employee who can undertake this role – especially once you allow for the various rules on who can and cannot act as a level 1 user. It may be possible to appoint HR professional to undertake this role, provided they are also engaged by you to deliver all or part of your HR function.
If you want to go down the road of appointing a HR professional as a Level 1 or 2 User, then in doing so you must continue to adhere to the rule that states you must always have at least Level 1 that is either a director, partner or employee. You must also have at least one Level 1 User that is a ‘settled worker’.
You must disclose to the Home Office if you assign a certificate of sponsorship to a family member of anyone in your organisation
Even if you get around the Level 1 user issue above, you will still always need to disclose to the Home Office if you sponsor a family member of anyone in the organisation by assigning a certificate of sponsorship to them. This is a clear-cut duty if you are a small or medium-sized business and ignorance of the familial relationship appears to be no excuse. For a definition of what is classed as a small/medium or large business, see here. If you are a large business, then this duty to disclose arises only if you are aware you are assigning a certificate to a family member.
Disclosure must be made by way of a sponsor note.
What may happen if I disclose to the Home Office the sponsorship of a family member?
If the Home Office know you are sponsoring a family member this appears to be something of a ‘red flag’ and increases the likelihood of a compliance visit. However, this is hugely favourable to not disclosing this to the Home Office and them finding out.
What happens if you fail to disclose to the Home Office the sponsorship of a family member?
If the Home Office discovers that you are sponsoring a family of anyone within your organisation, and you have not already disclosed this to them, then this is a ground for revoking your licence. The Home Office are likely to further question the genuineness of the role and probably seek to find multiple reasons to revoke your licence.
If you lose your licence, then you also must stop sponsoring and employing any individuals working under the licence. You will be subject to a ‘cooling-off period’, meaning you cannot apply for a licence for at least six months from the date of the decision.
What happens the Home Office find out that I have assigned a certificate of sponsorship to a family member?
If you already hold a sponsor licence and the Home Office discover that a Level 1 or Level 2 User has assigned a certificate of sponsorship to a family member, then this is a mandatory ground to revoke your licence. This means your licence will be revoked. Again, if you lose your licence, then you also must stop sponsoring and employing any individuals working under the licence. You will be subject to a ‘cooling-off period’, meaning you cannot apply for a licence for at least six months from the date of the decision.
Applying for and maintaining a sponsor licence is a complicated business at the best of times. If you either are sponsoring, or intend to sponsor a family member of anyone within your organisation, then you should proceed with extra caution. You are likely to increase your chances of a compliance visit and you can expect greater suspicion and scrutiny on the part of the Home Office – that is assuming you do not fall foul of any the above provisions.
However, difficulties around the sponsorship of family members are often surmountable provided you pay careful attention to the rules around sponsorship and what you can and cannot do.
How can I avoid Rejections or Refusals of my Sponsor Application?
Countless clients approach us after receiving a negative decision on their sponsor licence application, whether they applied on their own or through another legal representative. Negative decisions usually revolve around a relatively small number of issues, so we’ll look at the five most common pitfalls below and how to avoid them.
But first, let’s clarify what we mean by a “negative decision.” There are two types: a “rejection” and a “refusal” of your licence application.
A rejection is the lesser of two evils, as you get a refund of the licence fee and can apply again straight away. If you are refused, the Home Office keeps your application fee and imposes a minimum six-month ban on reapplying, called a “cooling-off” period.
Here are five common mistakes to avoid when applying for a sponsor licence:
Don’t forget your cover letter
It’s all set out in Appendix A. We’ve copied the relevant bit below – and here we’re really talking about a Skilled Worker sponsor licence.
Go through what’s required, point-by-point (or get us to do it, we’ll save you time and get it right first time). If you don’t provide all the information, expect a rejection.
Note that they want a hierarchy chart – which we would treat as a separate document that would normally sit outside of your cover letter.
Failing to submit all mandatory documents
Our friend ‘Appendix A’ tells us what documents need to be submitted. Unfortunately, Appendix A isn’t user-friendly, as you have to work through a series of ‘tables’, picking up the minimum 4 required documents. Most businesses will pick-out most or all of their documents from Table 4. However, some of the earlier tables have mandatory documents depending on the nature of the business (e.g. if you are a ‘start up’, food business, franchise or Care Quality Commission Regulated).
Where possible, we encourage you to submit more than the bare minimum of 4 documents, in case the Home Office take exception to a particular document.
Failure to prepare for a ‘compliance check’
You should consider how likely you are to be inspected as part of the licence application process. Certain businesses are much more likely to be targeted for a compliance check before the Home Office will grant a licence. Since 2024, the Home Office has increased its number of “remote compliance checks.” Compliance checks are to be avoided at all costs as the Home Office will go through your HR systems with a fine-tooth comb. At best, following any inspection your licence will be approved but subject to great delay. At worst, it’s a refusal and a 12-month cooling off period.
If targeted for a remote compliance check – you will receive the ‘dreaded letter’ asking for detailed evidence of your HR systems, giving you just 7 days to respond. Here is a redacted version of the dreaded letter.
At Truth Legal we have designed a special compliance package that will show-off to the Home Office how well you can comply with your sponsor duties. These will generally head off any compliance check. Contact us to find out more.
Forgetting to submit a signed Submissions Sheet
Once you submit your licence application, a Submissions Sheet becomes available to be printed. This must be signed by the person you nominated as the “authorising officer” and then sent to the Home Office, along with the rest of your supporting documents. If you don’t submit this, your application will be rejected.
Don’t miss the deadline to send supporting documents
From when you submit the online sponsor licence application, you have just five working days to send everything to the Home Office. Send them to the email address stated on the Submissions Sheet. Don’t delay!
Will you need to renew your licence?
No. Following changes introduced by UKVI, sponsor licences no longer expire. Your licence should be valid unless it is revoked or surrendered.
Brexit’s Impact: What’s Changed?
Brexit has shifted the game. Now that EU citizens need sponsorship just like everyone else, businesses that once relied on a steady flow of EU workers must adjust to the new rules. This has not only increased the demand for sponsor licences but also made it more important for companies to understand the criteria for sponsorship and prepare for a more competitive hiring landscape.
Pitfalls to Avoid When Applying
Many businesses trip up by not providing enough evidence or misunderstanding the requirements for specific job roles. For example, roles need to meet certain salary and skill thresholds, which aren’t always straightforward. Make sure all your documentation is thorough and accurate before submitting the application. If you’re unsure, don’t hesitate to seek professional advice to avoid setbacks.
Financial Considerations: Know the Costs
The financial side of obtaining and maintaining a Skilled Worker Sponsor Licence involves more than just the initial application fee. You’ll also need to budget for the Immigration Skills Charge, which applies to each sponsored worker. If you’re sponsoring multiple employees, this can add up quickly. Don’t overlook the potential costs of non-compliance either—penalties can be hefty.
Investing in proper HR training and robust systems will help you stay on track, avoid fines, and manage costs more effectively.
The Role of Legal Assistance
Given the complexities involved, having a legal expert by your side can make a significant difference. An immigration solicitor can help you navigate each step of the process, ensuring all requirements are met. This support is especially useful if your business has faced any compliance issues in the past or if your application is more complicated than usual.
Truth Legal: Your Partner in the Sponsorship Journey
At Truth Legal, we provide practical, hands-on guidance throughout the Skilled Worker Sponsor Licence process. From preparing your application and gathering the right documents to managing ongoing compliance, our team ensures you’re fully equipped to succeed. Our goal is to make the sponsorship process smoother for your business, allowing you to focus on hiring the right talent while we take care of the paperwork.
Why Choose Truth Legal
Sponsoring foreign national workers can be highly cost effective for your business when done well. At Truth Legal, we’re not just about getting the licence; we aim to cultivate a close partnership with you, ensuring that sponsorship seamlessly integrates into your business.
Our team comprises genuine sponsor license specialists, offering effective support at a more affordable rate than most competitors. Our reviews speak volumes. Arrange a free consultation, and we’ll promptly send you our costs for your consideration.
At Truth Legal, our dedicated and experienced team of immigration solicitors has assisted numerous businesses in obtaining a Skilled Worker (previously known as a Tier 2) Sponsor Licence to sponsor overseas workers.
While other organisations, many of which are not regulated solicitors, may handle the basics of submitting the licence application, they often leave you in the dark about how sponsorship truly works, exposing you to long-term vulnerability. At Truth Legal, we take the time to ensure you enter into sponsorship with a full understanding of how it works and the responsibilities associated with holding a licence.
Our ethical approach not only secures the future of your business but also considers long-term goals. Our expertise in employment law enables us to maintain employee satisfaction, ensuring sponsored employees remain loyal to your company.
How we can help?
Detailed consultation
We conduct a detailed consultation to ensure you fully understand the sponsorship process and licence duties. You’ll receive a tailored advice letter and our Quick Reference Guide to sponsor licence compliance.
Preparing your licence application
We prepare a robust licence application, advising you on required documentation, drafting a detailed cover letter outlining your business case, and setting up your online application. Typically, we can turn an application around within a week, provided you promptly provide the required documentation.
Help sponsoring individuals
After obtaining your licence, we guide you through applying for certificate(s) of sponsorship and assigning them to individuals. Additionally, we offer end-to-end services, advising and assisting the sponsored individual with their visa application.
Compliance support
As an optional service, we can carry out a ‘mock audit’ of your systems, to ensure you are compliant and prepared for any Home Office audit. Our ‘mock-audit’ service reviews existing HR systems, providing detailed feedback to ensure HR compliance with sponsor licence requirements. Alternatively, we can prepare a specific compliance report to accompany the licence application, potentially avoiding audits and ensuring your HR systems are in place from the outset.
Frequently Asked Questions about Skilled Work Sponsorship
How long does it take to get a licence?
Processing times vary but usually take up to eight weeks. This depends on how complete your application is and whether any additional checks are needed.
Do you need to pay for the licence?
Yes, there’s a fee involved. The amount depends on the size and type of your business—larger companies pay more, while smaller or charitable organisations pay less.
How much does it cost?
The sponsor licence costs £750 for small businesses or £1,579 for medium/large businesses. Our fee for assisting with the licence application is available upon request after a free initial consultation.
Additional costs apply when sponsoring an individual:
- 1 certificate of sponsorship = £525(one-off fee per sponsored person)
- Immigration Skills Charge = £480 (small employer) or £1,320 (medium/large employer) per year, per person, payable upfront.
Individuals also have visa fees, which are their responsibility.
You can read more in our guide: ‘Sponsor licence costs – everything you need to know’.
What if your licence application is denied?
If your application is “rejected,” you can usually reapply immediately, and you’ll get a refund. If it’s “refused,” you’ll face a waiting period (usually 12 months) before you can reapply.
Can the licence be revoked?
Yes, if you don’t stick to the rules or fail to meet your sponsorship duties, the licence can be taken away.
What are the responsibilities of a licence holder?
You’ll need to keep accurate records for your sponsored workers, report any changes (like if someone leaves), and make sure everything stays above board to avoid penalties.
Can the licence be transferred to another company?
No, each company needs to apply for its own licence. Licences are specific to the organisation that applies and can’t be moved to another business.
How long should an employer sponsor a skilled worker?
In legal terms, you are allowed to sponsor each overseas worker for up to 5 years, and there are very good reasons for doing so:
- Certainty – a 5 year sponsorship period from day one increases the likelihood that the employee in question will stay with your business, although it should be noted that a 5 year CoS doesn’t prevent you from terminating the employment at an earlier date if things aren’t working out
- Time and money (in the long-run) – sponsoring for 5 years means that you won’t need to go through any renewal and won’t need to incur any more CoS application fees. At the end of the 5 years, the employee will be in a position to apply for indefinite leave to remain (ILR) in the UK, and they no longer need to be sponsored.
If you sponsor for less than 5 years then it’s likely that the next CoS you need will switch from being defined to being undefined, and if you get bureaucratic details like this wrong then you could be putting your entire sponsor licence at risk.
The only real downside to sponsoring for 5 years from the start is that it involves spending much more in upfront costs. We’ve already listed the charges connected to CoS applications, and as well as the fee for the sponsor licence and each CoS you will have to pay the Immigration Skills Charge (ISC) up-front for each worker for every year that you intended the CoS to apply.
This means that for a small organisation the cost of sponsoring a skilled worker for a guaranteed 5 years would be 5 x £480, which is £2,400. Add this to the licence fee of £611 and the CoS fee of £525 and the cost of each CoS, at the time of applying, rises to £3,536, based on one worker sponsoring for the full 5 years. If you sponsor multiple then effectively the licence fee of £611 is apportioned accordingly.
A two year sponsorship, on the other hand, would only cost £2,096 (including the licence fee, CoS fee and ISC), a drop which, for a smaller business, could make all the difference. The subsequent 3 years of a 5 year sponsorship would then cost £1,965 (£525 for another Cos application, £1,440 in Immigration Skills Charge).
As you can see, the overall cost is higher if you spread it over 2 CoS, but the lower initial fees could suit your present commercial circumstances more.
What are the current entrant rates?
If you want to sponsor an individual under a Skilled Worker sponsor licence, then minimum rates of pay apply. These rates can vary according to job role. However, if the individual you want to sponsor meets the definition of a ‘New Entrant’, then much lower rates apply, so it’s worth understanding how the New Entrant rate works. Read more about updates and changes to entrant rates here.
How much do I have to pay my worker?
If you run a sponsor licence & sponsor workers, it is important to keep on top of minimum wage changes to avoid breaching your sponsor licence duties.
The Home Office requires a minimum salary for sponsored workers, varying by job code. Recovery of some fees paid for the sponsored worker is possible, excluding the Immigration Skills Charge.
This is a complicated area and we go into this in more detail in our legal guide to minimum wage laws for sponsored workers on visas, which we recommend you read as useful knowledge.
Can I recover costs from the worker?
Yes, it is possible to recover some fees that you pay in respect of the sponsored worker, although the Immigration Skills Charge cannot be recovered. Check out our blog on this issue.
As an ethical employer ourselves, we are keen to promote ethical practices when it comes to claw back arrangements. If you are recruiting into a care role, it may be worth visiting our dedicated page for such services.
What are the pros and cons of sponsorship?
Starting with the positives, a sponsor licence allows access to a broader talent pool. Additionally, sponsored workers can only work for you, enhancing employee retention.
At first glance the costs could be viewed in the negative column. However, we often hear from our clients that the cost of sponsorship is considerably less than the costs that come with trying to source from the domestic market, such as recruiters fees or agency staff.
Sponsorship does require a time commitment in terms of HR, with the amount varying depending on how many individuals you sponsor.
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Further reading
Read our popular articles for more information on Skilled Worker (Tier 2) Sponsor Licence.
Legal Guides
Read our extensive legal guides for more information on Skilled Worker (Tier 2) Sponsor Licence.
