UK Sponsor Licence Application: Eligibility, Process and Fees

Apply for a UK Sponsor Licence to hire workers from outside the UK. We assess eligibility, prepare your Appendix A documents, and manage the full application through UKVI.

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What Is a UK Sponsor Licence?

A UK Sponsor Licence is a formal permission granted by the Home Office to UK employers who want to hire workers from outside the UK. Without a valid sponsor licence, a business cannot legally employ a non-UK national who needs permission to work in the UK, including most non-EEA nationals and those without an existing right to work.

Sponsor licences are divided into two categories. A Worker licence covers long-term sponsored employment on routes such as the Skilled Worker Visa, Health and Care Worker, Minister of Religion, Global Business Mobility (Senior or Specialist Worker), and International Sportsperson. A Temporary Worker licence covers time-limited roles including Charity Worker, Religious Worker, Creative Worker, Scale-up, and Global Business Mobility (Graduate Trainee). An organisation can hold both types simultaneously.

A note on terminology: you may still see references to 'Tier 2' and 'Tier 5' sponsor licences in older guidance. These were the predecessor route names, officially retired in December 2020 when the current points-based system was introduced. Tier 2 became the Skilled Worker and other Worker routes, Tier 5 became the Temporary Worker routes. These names should not be used in new applications or compliance processes.

Why Preparation Matters: The 56% Approval Rate

In the year to June 2025, the Home Office approved only 56% of new sponsor licence applications, meaning nearly one in two applications was refused. When an application is refused, the entire fee is retained and the employer typically faces a six-month cooling-off period before reapplying, during which international recruitment is blocked.

Most refusals are not because the employer was ineligible. They result from insufficient documentation, concerns about the genuineness of the vacancy or business, doubts about the Authorising Officer's suitability, or HR systems that cannot demonstrate readiness to meet sponsor duties from day one.

Licence Types and Worker Routes

Worker Licence, for long-term employment

Covers the Skilled Worker VisaHealth and Care WorkerMinister of Religion, International Sportsperson (over 12 months), and Global Business Mobility (Senior or Specialist Worker and UK Expansion Worker) routes.

Temporary Worker Licence, for time-limited roles

Covers Scale-upCharity WorkerReligious Worker (non-pastoral), Creative WorkerGlobal Business Mobility (Graduate Trainee)Government Authorised Exchange, International Agreement, and Seasonal Worker routes.

Note: Scale-up and UK Expansion Worker licences have a 4-year maximum, the April 2024 renewal abolition does not apply to these routes. See our Sponsor Licence Renewal page for full detail.

Eligibility Criteria and Key Personnel

To apply, your organisation must:

  • Be a genuine, lawfully operating business in the UK, verified by the Home Office through HMRC records, Companies House, and your supporting documents.
  • Have a genuine need for overseas workers in roles at the required skill level and salary threshold.
  • Have adequate HR systems and compliance processes to meet sponsor duties from day one, including Appendix D record-keeping, right-to-work checks, and SMS reporting.
  • Appoint the required key personnel: an Authorising Officer, at least one Level 1 User, and a Key Contact, all currently employed by (or a director or partner of) the organisation.

New from 31 December 2024: Level 1 Users must be a British citizen, Irish citizen, holder of Indefinite Leave to Remain, or an EU/EEA national with EU Settled or Pre-Settled Status under the EUSS. Any additional Level 1 User beyond the first must be a paid employee or office holder. Immigration advisers and representatives cannot act as Level 1 Users at the application stage.

Small Sponsor Status

Your organisation qualifies as a small or charitable sponsor, with reduced fees, if it meets at least 2 of the following 3 criteria: 50 or fewer employees, annual turnover of £15 million or less, and total assets of £7.5 million or less. These figures were updated for 2026, older guidance referencing £10.2 million turnover or £5.1 million assets is out of date.

Appendix A: Supporting Documents

Supporting documents are governed by Appendix A of the sponsor guidance. You must submit at least 4 documents from the specified list, the exact requirements depend on your organisation type and how long you have been trading. Documents must tell a consistent story across Companies House, HMRC, payroll, and business address records. Most applicants will need:

  • PAYE or Accounts Office reference letter from HMRC.
  • Employer's liability insurance certificate, minimum £5 million employee cover (effectively mandatory).
  • Copy of lease, freehold title, or tenancy agreement for your UK trading address.
  • Minimum 1-month business bank statement from an FCA/PRA-regulated bank.
  • Latest signed annual accounts (mandatory if trading for more than 18 months).
  • VAT certificate (if registered), Companies House certificate, or sector-specific regulatory approval (CQC, SRA, ACCA, etc.) as applicable.

The Application Process

Register on the Home Office Sponsorship Management System (SMS) online portal, then complete the online application form, which takes approximately 20 to 30 minutes. The application fee is paid by debit or credit card at the end of the form.

The Authorising Officer must personally sign the submission sheet, this is a formal legal declaration of responsibility. The signed sheet and all Appendix A documents must be submitted by email within 5 working days. Files must be PDF, JPEG, or PNG, with names of 25 characters or fewer.

Standard processing is up to 8 weeks. A priority service targeting 10 working days is available for an additional fee. The Home Office may conduct a pre-licence compliance visit, announced or unannounced, before granting the licence. In 2025 to 2026, many are conducted via video call, but physical visits remain possible.

There is no annual or ongoing licence fee. The application fee is a one-time cost. Since 6 April 2024, the four-year renewal cycle has been abolished for Worker and Temporary Worker licences, see our Sponsor Licence Renewal page.

You can apply for a Sponsor Licence on GOV.UK and view the full sponsor guidance on GOV.UK.

Certificates of Sponsorship and Ongoing Duties

Once the licence is granted, you assign Certificates of Sponsorship (CoS) to workers through the SMS. There are two types: Defined CoS (for workers applying from outside the UK, pre-allocated by the Home Office on request) and Undefined CoS (for in-UK workers switching to your employment). CoS fees cannot be recovered from the sponsored worker.

The Immigration Skills Charge (ISC) applies to Skilled Worker and Senior or Specialist Worker sponsorship. Since 16 December 2025, the ISC is calculated on a banded basis by total visa duration. The ISC cannot be charged to or recovered from the sponsored worker, this has been prohibited since 31 December 2024.

Holding a sponsor licence is a continuous obligation. You must:

  • Maintain Appendix D records for every sponsored worker (passport, right-to-work checks, salary, contact details, absence records).
  • Report changes in workers' circumstances via the SMS within 10 working days, role change, salary change, absences, termination.
  • Report significant organisational changes (name, address, structure, cessation of trading).
  • Right-to-work checks before employment commences and at required follow-up intervals.

From 8 April 2026: Skilled Worker salary compliance is assessed on a per-pay-period basis, sponsored workers must be paid at or above their CoS salary in each individual pay period, not simply on an annual average. See our Sponsorship Duties and UKVI Compliant HR Software pages for full guidance on managing these obligations.

If Your Application Is Refused & How Work Permit Cloud Can Help

If refused, the fee is non-refundable and a 6-month cooling-off period typically applies before reapplication. If the refusal was due to a specific document error, correction and resubmission may be possible. Judicial Review of a refusal decision is available in limited circumstances.

How Work Permit Cloud Can Help

Work Permit Cloud assesses your eligibility before application, identifies the correct licence category, reviews the suitability of key personnel, prepares your Appendix A bundle, advises on HR system requirements, and manages the full submission process. For organisations facing compliance visit notices or concerns before or after application, we provide pre-application audit support.

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FAQ

Common questions

Who needs a UK Sponsor Licence?

Any UK employer who wants to hire a worker from outside the UK who requires permission to work must hold a valid Home Office sponsor licence before assigning a Certificate of Sponsorship. This applies to all Worker routes (including the Skilled Worker Visa, Health and Care Worker Visa, Global Business Mobility routes, and others) and Temporary Worker routes (including Charity Worker, Religious Worker, Creative Worker, and Scale-up). Note: the old terms "Tier 2" and "Tier 5" were retired in December 2020, the current categories are "Worker licence" and "Temporary Worker licence".

What are the application fees for a Sponsor Licence in 2026?

From 8 April 2026: £611 for small or charitable sponsors, £1,682 for medium or large sponsors. Small sponsor status requires meeting at least 2 of the following 3 criteria: 50 or fewer employees, annual turnover of £15 million or less, total assets of £7.5 million or less. These figures were updated in 2026, the old thresholds (£10.2m turnover, £5.1m assets) no longer apply. Fees are non-refundable if the application is refused. Priority service costs an additional £750.

What documents are needed for a Sponsor Licence application?

Under Appendix A of the sponsor guidance, at least 4 documents from the specified list must be submitted, including employer's liability insurance (minimum £5m cover, now effectively mandatory), the PAYE or Accounts Office reference letter from HMRC, a minimum 1-month business bank statement from an FCA/PRA-regulated bank, signed annual accounts (mandatory if trading more than 18 months), and as applicable: tenancy or freehold documentation, VAT certificate, or sector-specific regulatory approvals. Documents must be consistent across Companies House, HMRC, and payroll records.

What is the 56% approval rate and why does it matter?

In the year to June 2025, only 56% of new sponsor licence applications were approved, meaning nearly 1 in 2 applications was refused. When refused, the fee is non-refundable and a 6-month cooling-off period typically applies before reapplication. Most refusals are not because the employer was ineligible, they result from insufficient documentation, concerns about genuineness, or HR systems not ready to meet sponsor duties. Professional preparation is the difference between approval and refusal.

What are the Level 1 User requirements?

Since 31 December 2024, Level 1 Users, the person or people who manage the Sponsor Management System, must be a British citizen, Irish citizen, hold Indefinite Leave to Remain, or be an EU/EEA national with EU Settled or Pre-Settled Status under the EUSS. Any additional Level 1 User beyond the first must be a paid employee or office holder of the sponsoring organisation. External advisers and immigration representatives cannot act as Level 1 Users at the application stage.

What ongoing obligations apply after the licence is granted?

Holding a sponsor licence is a continuous obligation, not a one-off event. You must maintain Appendix D records for every sponsored worker, report changes via SMS within 10 working days, conduct right-to-work checks, and pay sponsored workers at or above their CoS salary in each individual pay period (from April 2026). The ISC cannot be recovered from workers (prohibited since December 2024). See our Sponsorship Duties and UKVI Compliant HR Software pages for full guidance.

Is there a recurring annual licence fee?

No. There is no annual or ongoing licence fee. The application fee is a one-time payment. Since 6 April 2024, the four-year renewal cycle and renewal fees have been abolished for most Worker and Temporary Worker licences (see our Sponsor Licence Renewal page). The only recurring fees related to sponsorship are the Certificate of Sponsorship fees (£525 per Worker CoS, £55 per Temporary Worker CoS) and the Immigration Skills Charge where applicable.

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