If a UK firm wants to employ non-UK residents (including EU nationals who entered the UK from 1st January 2021), the employer must hold a valid sponsor licence from the UK Home Office.
There are two main types of sponsor licences: Worker and Temporary Worker. The Worker sponsor licence covers long-term skilled employment, including the Skilled Worker, Minister of Religion, and International Sportsperson routes. The Temporary Worker licence covers fixed-term placements such as Creative Worker, Charity Worker, Seasonal Worker, and Government Authorised Exchange programmes.
Important Update: The old “Tier 2” and “Tier 5” terminology has been replaced. The current system uses “Worker” and “Temporary Worker” licences under the UK’s points-based immigration system, introduced in December 2020.
Sponsor Licence Requirements
To apply for a UK sponsor licence, you must submit a minimum of 4 supporting documents along with your application form. Accepted documents include:
- Companies House Registration Number
- Signed Annual Accounts (mandatory if the business is over 18 months old)
- Minimum 1-month business bank statement (from an FCA and PRA regulated bank)
- Employer liability insurance certificate (minimum cover of £5 million)
- Copy of Lease, Freehold or Tenancy agreement
- Copy of regulatory approval (e.g. ACCA, SRA, Health & Safety star rating for food businesses)
- VAT Certificate (if registered)
- PAYE or Account Office Reference Letter from HMRC
The company must also have a Pension scheme in place. If your sponsor licence application is refused, there is a 6-month cooling-off period before you can reapply. In some cases, you may correct document errors and resubmit, or lodge a Judicial Review if needed.
How Long Does a UK Sponsor Licence Application Take?
Standard processing takes 8 to 12 weeks from the date of submission. Processing may be longer if the application is complex or documentation is incomplete. The Home Office may also conduct an on-site visit to your premises as part of their due diligence.
For a faster decision, you can pay an optional Priority Service fee of £500, which aims to provide a decision within 10 working days. This does not guarantee priority if a compliance visit is required.
How Much Does the UK Sponsor Licence Cost? (Updated April 2025)
Sponsor licence application fees increased by approximately 7% from 9 April 2025:
| Organisation Size | Application Fee |
|---|---|
| Small / Charitable Organisation | £574 |
| Medium / Large Organisation | £1,579 |
A small organisation is now defined (from 2025) as meeting at least two of the following: up to 50 employees, annual turnover of £15 million or less, and total assets of £7.5 million or less.
From 6 April 2024, sponsor licences no longer need to be renewed every four years. Licences are now automatically valid for 10 years, significantly reducing long-term costs for sponsors.
Certificate of Sponsorship (CoS) Fees (Updated April 2025)
| Route | CoS Fee |
|---|---|
| Skilled Worker / Senior or Specialist Worker | £525 (increased from £239) |
| Temporary Worker | £55 |
| International Sportsperson (over 12 months) | £525 |
| International Sportsperson (12 months or less) | £55 |
Immigration Skills Charge (ISC)
Most Skilled Worker sponsors must also pay the Immigration Skills Charge:
| Organisation Size | Annual ISC Per Worker |
|---|---|
| Small / Charitable | £364 per year |
| Medium / Large | £1,000 per year |
Critical 2024–2025 Compliance Update: Fee Recovery Ban
From 31 December 2024, employers are prohibited from passing the following costs on to sponsored workers:
- Sponsor licence fee (including route additions and associated admin costs)
- Certificate of Sponsorship fee (for CoS assigned on or after 31 December 2024)
- Immigration Skills Charge
From 9 April 2025, this ban was extended to all sponsored work routes (not just Skilled Worker).
The Home Office will normally revoke a sponsor licence if an employer attempts to recover any of these prohibited fees from workers — including through clawback clauses in employment contracts.
Workers may still be asked to cover their own visa application fee, Immigration Health Surcharge (£1,035/year), and optional priority visa service fees.
What Are the UK Sponsorship Licence Requirements and Process?
To sponsor a foreign worker, the employer must:
- Apply for a sponsor licence from the UK Home Office
- Meet all eligibility requirements and provide supporting documentation
- Advertise the role following Resident Labour Market Test guidelines (where applicable)
- Once licensed, assign a Certificate of Sponsorship (CoS) to the prospective employee
- The worker uses the CoS to apply for their Skilled Worker Visa
Licenced sponsors must manage their licence through the Sponsorship Management System (SMS) and follow all ongoing sponsor duties, including reporting changes, maintaining HR records, and cooperating with Home Office audits.
Certificate of Sponsorship (CoS)
A Certificate of Sponsorship is an electronic record assigned by the licenced sponsor to the foreign worker. There are two types:
- Defined CoS – for workers applying from outside the UK
- Undefined CoS – for in-country applications and extensions
Both types are managed through the Sponsorship Management System (SMS), accessible once a licence is granted.
Authority Links
- Apply for a Sponsor Licence – GOV.UK
- Sponsor Licence Duties – GOV.UK
- Register of Licensed Sponsors – GOV.UK
Sponsor Licence FAQs (Updated)
What is a sponsor licence in the UK?
A sponsor licence is official Home Office approval that allows a UK organisation to hire skilled workers from outside the UK. It is mandatory for any employer wishing to recruit non-UK nationals under the points-based immigration system.
How long does a UK sponsor licence last?
From 6 April 2024, sponsor licences are valid for 10 years and no longer require renewal. Previously, they lasted 4 years.
Why do sponsor licence holders need to stay compliant?
Failure to comply with sponsor duties can result in fines of up to £20,000 per illegal worker, a downgrade to a B-rating, licence suspension, or full revocation.
Can I recover sponsorship costs from my workers?
As of 31 December 2024 (Skilled Worker route) and 9 April 2025 (all other routes), employers cannot recover the sponsor licence fee, CoS fee, or Immigration Skills Charge from workers. Attempting to do so is grounds for licence revocation.
What are the main sponsor duties?
Licenced sponsors must: keep up-to-date records of all sponsored workers; report changes in employment or immigration status to the Home Office; comply with illegal working prevention laws; and cooperate fully with Home Office compliance checks and audits.
How much does a sponsor licence cost in 2025?
From April 2025: £574 for small organisations and £1,579 for medium/large organisations. Additional per-worker costs include the Certificate of Sponsorship (£525 for Skilled Workers) and the Immigration Skills Charge (£364–£1,000 per year depending on size).
What is the minimum salary for a Skilled Worker?
The minimum salary threshold for Skilled Worker visas rose to £38,700 (or the occupation’s going rate, whichever is higher). A further increase to £41,700 took effect from 22 July 2025.
How do you become a licenced sponsor in the UK?
Submit an online application to the Home Office with the required documents and fee. You must demonstrate that your organisation is a genuine business, has a real need for overseas workers, and has adequate HR and compliance processes in place.
Navigating the UK sponsorship licence process can be complex — but you don’t have to do it alone.
Our expert team at VisaOffice has helped hundreds of UK businesses successfully obtain and maintain
their sponsor licences. From document preparation to full compliance support, we’re with you every step of the way.