Sponsor licence questions are often the very first thing employers raise when they begin exploring the process of hiring skilled workers from overseas. For many new businesses, the terminology itself feels like a maze, and it can be overwhelming to navigate all the requirements at once. That’s why having a clear, structured set of frequently asked questions makes a huge difference.
This article compiles the most common questions new employers ask about sponsor licences, covering eligibility, costs, application steps, compliance, and renewals. Instead of bombarding you with dense legal jargon, the answers are designed to be straightforward, while pointing you in the direction of more detailed GOV.UK resources when needed. The aim is not just to tick off compliance requirements, but to give employers the confidence that they’re managing the process correctly.
Think of it as a roadmap: simple, easy-to-follow explanations that guide you from the first step of eligibility through to the finer details of renewing your licence once it’s in place. Whether you’re a small business trying to bring in one skilled employee or a larger organisation planning multiple hires, having clarity on the most common sponsor licence queries helps you stay organised, reduce stress, and avoid costly mistakes.
What Is a Sponsor Licence?
A sponsor licence allows UK employers to legally sponsor overseas nationals under the Worker and Temporary Worker immigration routes. With this licence, you can assign Certificates of Sponsorship (CoS), enabling foreign workers to obtain visas. For the Worker routes, this includes Skilled Worker, Global Business Mobility – Senior or Specialist Worker, T2 Minister of Religion and International Sportsperson. Temporary Worker routes include Creative Workers, Charity Workers, Seasonal Workers and several Global Business Mobility pathways.
UK Sponsor Licence Common Questions
Here are the FAQs new employers often have:
1. Am I eligible to apply for a sponsor licence?
You need to meet certain eligibility criteria, including:
- Be a legitimate, UK-based organisation or legal entity.
- Have a UK presence (office or place of business).
- Demonstrate that you have a good track record—no serious immigration law breaches, not knowingly employing illegal workers.
- Be able to pay relevant fees.
2. What does applying cost?
Costs depend largely on the size of your organisation (small/charitable vs medium/large). Some key fees you should be aware of:
| Fee Type | Small / Charitable Sponsors | Medium / Large Sponsors |
| Sponsor licence application fee | £536 | £1,476 |
| Certificate of Sponsorship (CoS) per worker (Worker route) | — | £525 |
| Temporary Worker CoS | £55 | £55 |
| Immigration Skills Charge (for Skilled Worker / Senior or Specialist Worker visas, etc.) | Reduced rates for small/charitable, higher for large employers; first 12 months more; subsequent 6-monthly periods chargeable. | |
| Premium / Priority Processing | Additional fees apply, e.g. priority decision service. |
3. What steps are involved in applying?
A quick outline of the application path:
- Gather required documents (proof of business registration, accounts, evidence of premises, and details of roles you intend to sponsor).
- Complete the online sponsor licence application via GOV.UK.
- Pay the licence fee.
- Undergo any Home Office checks (such as criminal record checks for key personnel; ensuring HR systems are adequate; checking the premises).
- Receive a decision. If approved, you’ll obtain access to the Sponsorship Management System (SMS) to assign CoS and manage sponsored workers.
4. What are my compliance obligations as a sponsor?
Holding a sponsor licence comes with ongoing duties. Breaching them can lead to sanctions, suspension or revocation. Key compliance duties include:
- Regularly keeping worker records: contact, employment status, immigration status.
- Reporting changes: if a worker stops working, changes job, or leaves; if key personnel or premises change.
- Ensuring the sponsored role meets the job, salary, and skill-level requirements.
- Using the SMS properly: assigning certificates, tracking licences, and keeping up with updates.
- Allowing UKVI inspections, cooperating with audits, and maintaining compliance with immigration law.
5. What about renewals or licence expiry?
Some of the rules on renewals have changed recently.
- A sponsor licence generally has an expiry date. You used to need to apply to renew before it expired. However, as of recent updates, if your licence expires on or after 6 April 2024, you do not need to take separate renewal action: the Home Office will update the expiry date automatically.
- Despite this change, compliance obligations continue in full. Not meeting them can still lead to loss of licence.
6. How long does processing take? Can I speed it up?
- Standard processing times vary. GOV.UK gives estimates when you apply; it depends on case complexity.
- There is a priority service/priority decision option, at extra cost, which can get faster decisions in some cases.
- Premium customer service is also available for sponsors who meet certain standards; this provides enhanced support, faster responses, or an account manager. It comes at a significant cost.
7. What happens if I breach my sponsor duties?
New employers often worry: what are the risks? Key potential consequences include:
- Being put on a sponsor action plan, which is a kind of probationary oversight.
- Fines or other enforcement action.
- In the worst-case, loss or revocation of the sponsor licence. Once revoked, you’ll lose the ability to assign CoS and sponsor workers.
Other Common Questions
- Can I hold both Worker & Temporary Worker licences at the same time? Yes. Depending on your needs, you may apply for both “Worker” and “Temporary Worker” licences.
- What is the Immigration Skills Charge? It’s a charge employers pay when they sponsor a worker under certain routes. The amount depends on business size and how long the worker is sponsored.
- Which documentation is essential to include with the application? You’ll need proof of legal entity/business registration, proof of premises (often rent or lease agreements), proof of ability to pay, organisational policies, and perhaps past immigration compliance. Appendix A of the sponsor guidance gives the full list.
Where to Find More Details?
For deeper reading and the latest versions of rules, new employers should consult:
- Workers and Temporary Workers: Guidance for Sponsors – Part 1, Part 2 and Part 3 on GOV.UK.
- Supporting Documents for Sponsor Licence Applications, Appendix A.
- The UK visa-sponsorship for employers’ pages.
Take Away!
Becoming a sponsor licence holder is more than just filling out an application; it’s a responsibility that shapes how your business recruits and manages international staff. Employers who take the time to understand UK sponsor licence common questions, from eligibility and costs to compliance and renewals, are far better placed to succeed. Preparing documentation in advance, setting a clear budget for fees such as the licence itself, Certificates of Sponsorship, and the Immigration Skills Charge, and knowing your ongoing duties helps make the process smoother and reduces the risk of refusals or compliance issues. Treat it as a structured commitment, not a one-off task, and you’ll be ahead of the curve.
Rules and expectations do change, and staying informed is key. The most up-to-date guidance always sits on GOV.UK, with the latest updates after 22 July 2025 being particularly relevant. By building strong HR systems, keeping organised records, and staying on top of official announcements, you’ll create a sustainable approach to compliance rather than scrambling to meet requirements. And if you want accessible insights, practical tips, and employer-focused explanations, be sure to follow Sponsor Licence Mag—your go-to source for staying confident and compliant as a sponsor licence holder.
