A UK sponsor licence lets a UK employer hire workers from outside the UK Resident Labour Market who need permission to work — most commonly under the Skilled Worker route. The application takes 8-16 weeks, costs £574 (small) or £1,579 (medium/large), and the licence runs for 4 years before renewal.

This guide covers what''s involved from application through ongoing compliance. Sponsor licence applications have become significantly more scrutinised since 2023 — preparation matters.

Without a sponsor licence, you cannot hire most non-UK / non-Irish nationals who need permission to work (with limited exceptions for graduates with the Graduate visa, dependents of other visa holders, and a small set of routes that don''t require sponsorship).

With a licence, you can:

Assign Certificates of Sponsorship (CoS) for specific roles.
Hire workers from outside the UK who then apply for a Skilled Worker visa using your CoS.
Sponsor existing UK workers switching from other visas to Skilled Worker.

Choosing the right licence type

Two main types, often held together:

Worker licence

Covers the long-term work routes — primarily Skilled Worker, Senior or Specialist Worker (Intra-Company Transfer), and Minister of Religion / Sportsperson where applicable.

Temporary Worker licence

Covers shorter routes — Government Authorised Exchange, Charity Worker, Religious Worker, Creative Worker, International Sportsperson, Seasonal Worker.

Most UK employers need a Worker licence. Some need both (e.g. a charity that also runs commercial activity).

Costs (2026 estimates)

Fee	Small / charitable	Medium / large
Sponsor licence application	£574	£1,579
Certificate of Sponsorship	£239 per CoS	£239 per CoS
Immigration Skills Charge (per year per sponsored worker)	£364	£1,000
Priority service (optional, 10-day decision)	£500 extra	£500 extra
Pre-licence priority service	£25,000 (capped daily)	£25,000 (capped daily)

"Small" means meeting two of three thresholds: under £10.2m turnover, under £5.1m balance sheet, under 50 employees.

A 5-year Skilled Worker visa for one worker (employer cost): £574 + £239 + (£1,000 × 5) + £600 visa application fee + £5,175 NHS surcharge = roughly £11,500 (small employer about £8,000). Plus internal HR and legal time.

Application process — step by step

Step 1: Confirm eligibility

You must:

Be a genuine UK organisation operating lawfully.
Be able to demonstrate financial viability.
Have HR systems capable of meeting sponsor compliance duties.
Not have unspent criminal convictions for relevant offences.
Not have had a previous licence revoked within the cooling-off period.

Step 2: Nominate Key Personnel

Four roles (one person can hold multiple):

Authorising Officer: the most senior person responsible for the licence. Must be a director or equivalent. Cannot be an immigration adviser or someone with a prohibited offence.
Key Contact: UKVI''s main point of contact. Usually the Authorising Officer or HR lead.
Level 1 User: day-to-day SMS access, assigns CoS, manages workers. Usually HR / People Operations.
Level 2 User (optional): restricted SMS access, can be added later.

Key Personnel must be paid employees or office holders in the UK (with limited exceptions for very specific roles).

Step 3: Prepare the supporting evidence

Typical evidence required:

Proof of organisation status — Companies House extract, charity registration, partnership agreement.
Proof of trading — recent bank statements, VAT registration, accountancy or audit reports.
Proof of HR systems — written policies and procedures showing you can: monitor attendance, retain records, report changes to UKVI, perform right-to-work checks. UKVI specifies the evidence types in Appendix A: supporting documents.
Hierarchy chart showing where Key Personnel sit.
Job descriptions for the roles you plan to sponsor (highly recommended though not always required).

Submit the wrong evidence type and UKVI either refuses or requests further evidence with significant delay.

Step 4: Submit the application online

Apply through the Sponsor Management System. Pay the fee. Submit supporting documents within 5 working days of the application.

Step 5: UKVI assessment

Includes:

Document review by a caseworker.
Possible pre-licence compliance visit — UKVI inspectors attend the workplace, examine systems, interview the Authorising Officer.
Genuine vacancy assessment for roles you plan to sponsor.

Decision typically 8-16 weeks (10 days with priority service, but priority slots are limited and often booked out).

Step 6: Decision

Approved: you receive a Sponsor Licence Number (SLN), can immediately assign CoS.
Refused: with reasons. Most refusals carry a cooling-off period (typically 12 months) before re-application.

Ongoing compliance duties

Once you hold a licence, you have continuous obligations:

1. Right-to-work checks

For every new sponsored worker, perform a compliant right-to-work check before they start. Retain the evidence. See our right-to-work check guide.

2. Monitor and report

Use SMS to report changes within set deadlines (typically 10 working days):

Worker fails to turn up.
Worker is absent without authorisation for 10+ working days.
Worker''s role, salary, working hours, work location, or employment status changes.
Worker''s contract is terminated.
Significant changes to the sponsor (sale, change of name, change of ownership).

3. Maintain records

For each sponsored worker, retain:

CV / qualifications.
Right-to-work documents.
Attendance and absence records.
Payslips and bank statements showing salary actually paid.
Contract of employment.
Job description matching the CoS.

Retain for the duration of sponsorship plus at least 1 year (some recommend longer).

4. Annual review

Annual review of each sponsored worker — is the role still aligned with the CoS, is the salary still at or above going rate, is the worker still in role.

5. Renew the licence

4 years from grant. Renewal application typically opens 3 months before expiry. Missing the renewal means the licence lapses and existing workers'' visas are at risk.

What UKVI checks on audit

Pre-licence audit (during application) and post-licence audit (any time) look at:

HR records on every sponsored worker.
SMS records (CoS assignment, reporting log).
Payslips matching CoS salary.
Attendance / absence records.
Right-to-work check evidence.
Interview with Authorising Officer to test their understanding of the role and the system.
Genuine vacancy assessment for active sponsorships.

Audits range from minor advisory findings to immediate licence revocation. Common findings include: gaps in documentation, missed reports on SMS, salary discrepancies, and an Authorising Officer who can''t articulate the system.

What to do before applying

Ensure trading history (6-12+ months) and credibility evidence is solid.
Document HR policies for the points the application requires.
Identify Key Personnel and brief them on the role.
Consider engaging an immigration lawyer for the application — particularly important if you''re a new business, sponsor an unusual role, or have any complicating factors.
Have your evidence pack ready BEFORE applying — once you''ve applied, the 5-day evidence deadline is tight.

UK sponsor licence guide: application to compliance