Across the UK, sponsorship has become a central feature of recruitment planning for businesses ranging from small enterprises to global corporations. In 2025, the need for skilled international workers continues to shape hiring strategies, with sponsor licences acting as a gateway for employers to access talent from around the world. Clarifications introduced this year have placed stronger emphasis on compliance, accountability, and precise record-keeping, underscoring the fact that sponsorship is not just a formality but a responsibility. For many organisations, understanding what a sponsor licence really involves has become essential to securing long-term workforce stability in a competitive hiring market.
1. Myth: “Only large companies can apply for a sponsor licence”
One of the most pervasive myths is that only well-established, large organisations are eligible for a sponsor licence. That’s simply not true.
Reality check
- Small and medium enterprises (SMEs), sole traders, and startups can apply, as long as they meet the Home Office’s baseline requirements.
- In 2024, the Home Office removed the routine licence renewal requirement (for many licence types), making the ongoing burden lighter for smaller firms. Licences expiring on or after 6 April 2024 were automatically extended by ten years — reducing administrative overhead.
- The key is demonstrating that you are a genuine employer, have appropriate HR / record-keeping processes, and can meet your duties as a licensed sponsor. Size alone is not disqualifying.
Many smaller firms mistakenly doubt their own compliance capabilities. But it’s internal systems, documentation, and integrity that matter most, not sheer turnover or headcount.
2. Myth: “Having a sponsor licence means every visa will be granted”
Another misleading belief is that once a business holds a sponsor licence, it can simply request visa certificates and expect them to be approved.
Reality check
- A licence authorises you to sponsor, not a guarantee of visa success. Each Certificate of Sponsorship (CoS) and visa application must still meet specific immigration rules and requirements.
- Officials check details such as the role’s skill level, salary, genuineness of job descriptions, whether the candidate genuinely needs sponsorship, and compliance with immigration law.
- Between July 2024 and June 2025, the Home Office revoked 1,948 sponsor licences — more than double the previous year — largely for non-compliance, misuse, or failure to maintain correct systems.
- Thus, holding a licence is only the first hurdle. A careless CoS or weak supporting data can lead to refusals, audits, or even revocation.
3. Myth: “Sponsor licences must be renewed every four years”
In prior years, licence holders were required to renew every four years (with a fee and scrutiny). But that rule has changed.
Reality check
- As of 2024, licences that were due to expire on or after 6 April 2024 were automatically extended by ten years, and the renewal requirement was largely abolished.
- This does not mean the licence is permanent or free from oversight. Home Office compliance checks, audits, and inspections continue to be active and intensified.
- The focus has shifted away from cyclical renewal to continuous compliance. Employers now face unannounced scrutiny at any time.
- That means even if your licence is “automatically extended,” you still must uphold all sponsor duties without lapse.
4. Myth: “Applicants must already be in the UK to be sponsored”
Some HR teams believe that individuals must already be present in the UK to qualify for sponsorship.
Reality check
- Many visa routes allow overseas candidates to apply for entry from abroad, using the assigned Certificate of Sponsorship.
- However, specific route eligibility and procedural details vary — always check the relevant Home Office guidance.
- Sponsors must ensure compliance with Right to Work checks, visa timelines, and immigration rules for overseas assignments, but it’s entirely permissible in many cases.
This myth likely persists because of older practices or misunderstandings from previous versions of the rules.
5. Myth: “A sponsor licence lets you sponsor any role, regardless of skill level”
A dangerous oversimplification is that a sponsor licence gives employers carte blanche to sponsor any kind of job they like.
Reality check
- From 22 July 2025, for most Skilled Worker applications, roles must generally be at RQF Level 6 (graduate level) or above — unless the job is on the Immigration Salary List or Temporary Shortage List, or other transitional provisions apply.
- Roles previously viable under RQF 3–5 levels are now far more restricted. Many mid-skill roles are disqualified unless explicitly listed.
- The new rules tighten who qualifies, preventing misuse of sponsorship to bring in workers for roles that should be filled locally.
- Always check both the skills threshold and applicable salary thresholds per role — one or both may fail compliance if the role is too junior or the compensation too low.
Thus, a licence does not equal blanket authority; each position must pass a route-specific filter.
6. Myth: “You can charge the worker for licence or CoS fees”
Some employers believe it’s acceptable to charge the sponsored worker for licence or certificate costs. This is no longer tolerated.
Reality check
- From December 2024, the Home Office explicitly prohibits sponsors from passing on sponsor licence or CoS fees (or related administrative costs) to the worker.
- This aligns with earlier bans on passing the Immigration Skills Charge to workers.
- If a sponsor attempts to recover these costs from the employee, it may lead to licence suspension or revocation under the compliance regime.
- That said, other costs (e.g. visa application charges, Immigration Health Surcharge) may still be asked of the worker, but licence / CoS charges cannot.
This is a key change in 2025 that employers must internalise and communicate clearly.
7. Myth: “Once licensed, you never face enforcement action”
Some believe that a licence offers lifetime protection — once granted, nothing can touch it.
Reality check
- The Home Office now actively revokes licences for non-compliance. In the past year, they revoked numerous licences, doubling the previous count.
- Common reasons: missing or inaccurate right-to-work checks, failure to keep duty records, late Sponsor Management System (SMS) reporting, discrepancies in salary, or role drift (job duties not matching original CoS).
- Especially after the removal of renewal burdens, enforcement has become the main tool for compliance. Licences can be downgraded, suspended, or revoked at short notice.
- Employers must remain audit-ready and operate robust HR governance daily — not just at application time.
8. Myth: “Compliance is optional once the licence is approved”
Some take the licence as “permission granted,” then relax internal processes — a dangerous assumption.
Reality check
- Compliance is mandatory at all times. Sponsor duties include reporting changes, retaining records, checking right to work, and notifying UKVI of staff movements, terminations, or other material changes.
- Because renewal is less frequent, the Home Office now expects sponsors to be perpetually ready for audits, site visits, or digital checks.
- Non-compliance can trigger enforcement even years after your licence was issued.
- In 2025, the Home Office is shifting resources away from renewal checks toward retrospective compliance enforcement — meaning violations are more likely to be uncovered.
So, compliance must be baked into daily HR practices, not left for occasional reviews.
9. Myth: “Sponsor licence rules don’t change often”
Because immigration law is complex, there’s a misconception that rules are static. In fact, 2025 has already seen substantial changes.
Reality check
- In April 2025, the Home Office increased the cost of a Certificate of Sponsorship and raised visa/immigration fees as well.
- Earlier, updates to the Skilled Worker guidance took effect, aligning the rules with the Statement of Changes.
- The 22 July 2025 changes enforce higher skill and salary thresholds for many sponsoring roles.
- The sponsor licence renewal policy change in April 2024 further altered the compliance landscape.
- Proposals from the 2025 Immigration White Paper anticipate tightening of settlement paths, reductions in net migration, and further shifts in visa policy.
In short, sponsor rules are dynamic. Employers who adopt a “set and forget” attitude risk falling behind.
How to Avoid These Pitfalls?
To steer clear of myths and ensure your sponsorship scheme is robust:
- Start with compliance infrastructure: invest in HR systems, audit trails, role descriptions, and SMS familiarity.
- Stay current: regularly review GOV.UK guidance, Statement of Changes, and route-specific updates.
- Map roles properly: check whether a role meets RQF Level 6 (or is on the Temporary Shortage List) before offering CoS.
- Absorb sponsorship costs: never charge employees for licence or CoS fees.
- Be audit-ready always: retain documents such as right-to-work checks, contract versions, salary records, and movement logs.
- Monitor changes: updates in 2025 mean even previously compliant roles need reassessment.
- Seek specialist advice: don’t rely solely on general HR knowledge — immigration nuance matters.
Final Words!
Sponsor Licence Myths Debunked is ultimately a reminder that clarity and confidence come from separating assumption from reality. Employers that approach sponsorship with openness and strategy will find themselves far better placed to compete for the talent they need. For those who want to stay ahead of shifting rules and evolving best practice, following the Sponsor Licence Hub is the easiest way to keep informed, stay prepared, and make sponsorship work as a true advantage.
