If you want to hire workers from outside the UK — or employ someone already in the UK who needs to switch to a sponsored visa route — you almost certainly need a sponsor licence. Without one, you cannot issue Certificates of Sponsorship, and without a Certificate of Sponsorship, overseas workers cannot apply for a Skilled Worker Visa or most other work visa categories. This guide explains what a sponsor licence is, who qualifies, what the application involves, and what it costs in 2026.
What is a sponsor licence?
A sponsor licence is formal authorisation from UK Visas and Immigration (UKVI) that permits your organisation to sponsor overseas workers under the UK’s points-based immigration system. Once granted, the licence appears on the public Register of Licensed Sponsors and allows you to assign Certificates of Sponsorship to eligible workers.
There are two main types of licence. A Worker licence covers long-term skilled employment routes — principally the Skilled Worker Visa, the Senior or Specialist Worker route, and others. A Temporary Worker licence covers short-term categories such as seasonal workers, charity workers, and creative workers. Most employers hiring professional staff from overseas apply for a Worker licence. You can apply for both at the same time.
Who can apply?
Any UK-based organisation that is a genuine, lawfully operating business can apply. This includes limited companies, LLPs, sole traders, partnerships, charities, public bodies, and educational institutions. The organisation does not need to have been trading for a specific minimum period — but businesses that have been operating for fewer than 18 months must provide evidence of a current corporate bank account with a UK bank regulated by the FCA and PRA.
The Home Office assesses both eligibility and suitability. Eligibility covers whether your organisation is a genuine business with a lawful UK presence and genuine vacancies to fill. Suitability covers the conduct and history of the organisation, its directors, and its key personnel — including any prior immigration offences, criminal convictions, or previous sponsor licence refusals or revocations. If the Home Office has significant doubts about either, the application will be refused.
Only 56% of sponsor licence applications were approved in the year to June 2025. The Home Office takes a forensic approach — examining documents, checking online and third-party records, and assessing HR systems and compliance processes. A refused application results in losing the entire application fee and facing a cooling-off period of up to 12 months before a new application can be made. Thorough preparation before submitting is essential.
Key personnel — who must be named on the licence
Before applying, you must designate three key personnel roles. These individuals are named on the licence and are responsible for managing your sponsorship obligations:
- Authorising Officer: The most senior person with overall responsibility for the licence and compliance with sponsorship duties. Must be a paid employee, director, or partner of the organisation. Accountable for compliance even if they do not use the Sponsor Management System day to day.
- Key Contact: The main point of contact with the Home Office. Can be the same person as the Authorising Officer.
- Level 1 User: The person who manages the Sponsor Management System (SMS) — the online portal through which you assign Certificates of Sponsorship and manage your licence on a day-to-day basis.
All key personnel must be based in the UK, have no unspent criminal convictions for relevant offences, and must not have been involved in a previous sponsor licence that was revoked. The Level 1 User must hold settled status or British citizenship.
Documents required
The Home Office requires at least four documents from the categories specified in Appendix A of the sponsor guidance. The exact documents depend on your organisation type and sector. The core documents most employers need include evidence of genuine business activity — such as most recent audited accounts, contracts for goods or services, or bank statements showing recent trading activity — a valid employer’s liability insurance certificate covering at least £5 million, evidence of your business premises, and your PAYE registration.
Uploading high-quality, consistent, clearly labelled documents from the outset significantly improves both the outcome and the processing time. Inconsistencies between documents, or gaps in trading evidence, are common reasons applications are refused or delayed.
The application process
The application is submitted online through the Sponsor Management System. You create an SMS account, complete the application form, upload your supporting documents, and pay the application fee. The Home Office then reviews the application, verifies your business information, and may conduct a compliance visit — in person or via video — before making a decision.
Standard processing time is around 8 weeks. A priority service is available at an additional cost of £750, which aims to deliver a decision within 10 working days. Priority processing is not guaranteed if a compliance visit is required, as the visit itself takes time to arrange and complete.
If your application is approved, you receive an A-rated sponsor licence, access to the SMS, and an initial allocation of Certificates of Sponsorship. Your licence is now granted indefinitely — there is no fixed renewal period for most licences, provided you continue to meet your compliance obligations. The exception is the Expansion Worker and Scale-up Worker routes, where licences are time-limited to four years.
Fees in 2026
From 8 April 2026, the application fees are:
- Small or charitable sponsor — Worker licence: £611
- Medium or large sponsor — Worker licence: £1,682
- Temporary Worker licence: £611 regardless of size
To qualify as a small sponsor, your organisation must satisfy at least two of the following: annual turnover of no more than £15 million, total assets of no more than £7.5 million, or a workforce of 50 employees or fewer. Registered charities always qualify as small sponsors.
The application fee is non-refundable if the application is refused. If you withdraw before a caseworker begins processing, a refund may be available — but once processing has started, the fee is treated as spent regardless of the outcome.
Per-worker costs: what you pay for each sponsored employee
The licence fee is only the start. Every time you sponsor an individual worker, you pay additional fees:
Certificate of Sponsorship (CoS): £525 per worker. This is the digital document assigned to the worker, which they use to apply for their visa. It is paid when you assign the CoS through the SMS.
Immigration Skills Charge (ISC): A mandatory levy payable by the employer when assigning a CoS for Skilled Worker visas. The ISC increased significantly in December 2025. The rate depends on sponsor size and the duration of the visa. For a medium or large sponsor sponsoring a worker for three years, the ISC is £3,960. For a small or charitable sponsor, the equivalent figure is £1,440. The ISC cannot be recovered from the sponsored worker.
Employers cannot recover sponsorship costs from workers. Since January 2025, it is a revocable offence — meaning the Home Office can revoke your licence — if you attempt to recover the licence fee, CoS fee, or Immigration Skills Charge from the sponsored worker. These costs must be borne entirely by the employer.
Ongoing compliance obligations
Holding a sponsor licence is not a one-off task — it creates continuous obligations. As a licensed sponsor you must:
- Track the immigration status and right to work of all sponsored workers
- Report certain changes in a sponsored worker’s circumstances to the Home Office within specified timeframes — such as a worker not turning up to start work, absence without authorisation, or a worker leaving employment
- Keep specified records for each sponsored worker
- Cooperate with Home Office compliance visits and audits
- Ensure all sponsored roles continue to meet the salary and skill requirements for the relevant visa route
Failure to meet these obligations can result in your licence being downgraded to a B-rating — which prevents you from assigning new Certificates of Sponsorship until you complete a remedial action plan — or revoked entirely. Revocation ends your ability to sponsor workers and can affect the immigration status of workers currently sponsored by you. See our guide to immigration compliance and audits for more detail.
Internal links to related content: For information on the visa your sponsored workers apply for, see our UK Skilled Worker Visa 2026 guide.
Frequently asked questions
How much does a UK sponsor licence cost in 2026?
From 8 April 2026, the Worker licence application fee is £611 for small or charitable sponsors and £1,682 for medium or large sponsors. A priority service costs an additional £750. Beyond the licence fee, each sponsored worker requires a Certificate of Sponsorship at £525 and an Immigration Skills Charge — which for a three-year Skilled Worker visa ranges from £1,440 for small sponsors to £3,960 for large sponsors.
How long does a sponsor licence application take?
Standard processing is around 8 weeks. A priority service is available for £750, targeting a decision within 10 working days. Priority processing is not guaranteed if the Home Office needs to conduct a compliance visit.
What happens if my sponsor licence application is refused?
You lose the application fee and face a cooling-off period of up to 12 months before you can reapply. This is why thorough preparation before submitting is so important — only 56% of applications were approved in the year to June 2025.
How long does a sponsor licence last?
Sponsor licences are now granted indefinitely for most routes — the previous four-year renewal requirement was abolished in April 2024. The licence remains valid for as long as you meet your compliance obligations. The Home Office can downgrade or revoke it at any time if compliance duties are not met.
Can I pass sponsorship costs on to the worker?
No. Since January 2025 it is a revocable offence to recover the licence fee, Certificate of Sponsorship fee, or Immigration Skills Charge from a sponsored worker. These costs must be borne entirely by the employer.
JPS Immigration advises employers on sponsor licence applications, compliance audits, and all aspects of work visa sponsorship. Call +44 (0) 333 577 0034 or visit jpsimmigration.com/assessment for a free initial assessment.
