Sponsor Licence Guide is split into the following sections:
- Coronavirus and New Points System Sponsor Licence Update
- Sponsor Licence Introduction
- Skilled Worker or Intra-Company Transfer or both
- Sponsor Licence Business Requirements
Since the new post-Brexit points system was introduced on 1 December 2020 far more people at lower skill levels from RQF Level 3 (about equivalent to A Levels) can come under the Skilled Worker visa system. The new Skilled Worker visa replaced the previous Tier 2 visa scheme. If the employer already knows who they wish to employ, it is important to make sure that the proposed UK visa applicant gains enough points. In some cases the Skilled Worker visa applicant will need to take an English language test approved by UKVI to gain enough points. There is no English language requirement for the intra-company transfer visa category.
One of the changes under the new points system is that there are now no restrictions on shareholdings for Skilled Worker visa applicants, and so business owners can now more easily come under the Skilled Worker visa category. Previously, Skilled Workers were limited to a ten percent shareholding unless they were paid at least £159,600 per year or applied under the Intra-Company Transfer visa route.
Intra-Company Transfer visa applicants cannot usually apply for indefinite leave to remain at the end of five years in the UK. Intra-Company Transfer visa holders can since 1 December 2020 switch to the Skilled Worker visa category and be able to apply for indefinite leave to remain towards the end of five years in this category.
Due to the current situation documents can now be emailed to the Home Office for a Sponsor Licence application. There is no need to send original or certified copies of documents. We do not know how long this concession will last for. Also in many cases Skilled Worker visa applicants that previously had to leave the country and apply from abroad can now due to current travel restrictions, make applications from within the UK.
For visa applicants in the UK who have applied for a Skilled Worker visa before their visa expired and are waiting for a decision you can start work immediately for the employer, if the Certificate of Sponsorship was assigned before 1 January 2021. Health and Care visa applicants can start work for a new employer even if the CoS was assigned in 2021. This is a temporary measure due to the current COVID-19 situation and possible delays in processing visa applications.
A UK based organisation that wishes to employ overseas workers in the UK on a Skilled worker visa must have a valid sponsor licence, but many sponsor licence applications are rejected every year due to errors – such as failing to provide the correct documentation and information required, or failing a site visit from Home Office officials – meaning lost working hours and repeat applications. Employing someone on a visa is expensive, with various Government fees having to be paid.
In many cases if the application is refused you will not be able to apply for a Sponsor Licence again for the same company for six months if not longer. If the application is rejected because not all the necessary documents have not been provided you should be able to immediately apply for another Licence. The alternatives to a UK work visa with a UK employer sponsor are somewhat limited, and in reality in most cases are not feasible.
There are two types of Sponsor Licences. The Skilled Worker visa sponsor licence and Intra-Company Transfer sponsor licence. The employer can apply for both at the same time or apply for them at different times. The advantage of the Intra-Company Transfer sponsor licence compared to the Skilled Worker version, is that for companies with an oversea office wishing to transfer the employee to the UK it is frequently quicker. However, unlike the Skilled Worker visa category, the Intra-Company Transfer visa does not usually lead to indefinite leave to remain in the UK.
Since the new UK visa points system and the new Skilled Worker visa, which replaced the Tier 2 visa scheme, it is no longer necessary to do the Resident Labour Market Test. It was never necessary under the Intra-Company Transfer visa scheme. On 6 October 2019 ahead of Brexit the number of occupations in the Shortage Occupation List was greatly expanded. it is now easier for Engineers, IT staff, chefs, and more people in healthcare occupations to gain entry to the UK.
Workpermit.com's team of visa experts can show you how to obtain a Sponsor Licence by meeting all the conditions of your Sponsor application first time.
There is no requirement that the business in the UK needs to be at a particular size to apply for a sponsor licence, or that it should have been trading for any particular period of time. The business should be operational, and there should be someone resident in the UK and available, to deal with any queries from UK Visa and Immigration at the Home Office.
In practice the business would probably have say one or two or more people working in the business already. In many cases home based businesses have successfully applied for a Sponsor Licence. There should be a genuine need for the visa employee. The employee sponsored as a visa employee cannot be a Level 1 User for the Sponsor Licence with the ability to assign Certificates of Sponsorship for visa employees. Sponsor Management Service users for the Sponsor Licence also cannot sponsor close relatives including their husband, wife, partner, brother, sister, father, mother, etc.
Probably for very small businesses employing only one or two staff UK Visas and Immigration at the Home Office there is a bigger risk that they may wish to visit you before granting a Sponsor Licence.
In order to sponsor applicants, an employer will need to be on the register of licenced sponsors with UK Visas and Immigration. The Registration process can be quite difficult. The employer will need to submit an online application and provide a number of documents via email, in order to apply for a Sponsor Licence, and must accept a considerable number of responsibilities as a Sponsor. In addition, the employer should send a detailed covering letter probably several pages long to UK Visa with the documents to the Home Office answering various questions. UK Visa does not make it easy to find out which questions they want answered!
Due to the coronavirus situation, you can send copies of documents via email within five working days of submitting the online application. In many if not most cases employers make mistakes when submitting documents to UK Visa and Immigration. The documentation requirements as stated in published UKVI guidelines are confusing and difficult to understand. Please see below details of typical documents required for a Sponsor Licence application.
In most cases you will need to have at least four of the following (as before accounts can be provided via a link to the Companies House site) to be sent via email to the Home Office:
1) Lease or rental agreement for office premises can be provided (if relevant). All signatures should appear in this document.
2) Business bank statements. Perhaps over three months. As an alternative, you can provide a letter from a UK bank setting out the dealings it has had with you, including the nature and duration of those dealings.
3) VAT Certificate. Currently, it is acceptable to login using your business HMRC account details, download the VAT certificate, and then send it via email to the Home Office.
4) HMRC document (could be a web page) confirming that the business is registered for PAYE and National Insurance Contributions. The document should include both the PAYE Reference Number & Accounts Office Reference Number. It should be possible to obtain this by logging into the HMRC account for your business.
5) Latest Annual accounts. It is usually acceptable just to have a link to the accounts on the Companies House site.
6) Employers liability insurance certificate (cover of at least £5 million).
You need a minimum of four documents from the list of documents in the online Sponsor Licence form. It may be possible to provide alternative documents in some cases.
In addition, you should provide the following documents:
1) Long covering letter from the employer or representative providing additional information for UK visas at the Home Office.
2) You must provide an up to date hierarchy chart detailing any owner, director and board members. If your business has 50 employees or fewer, then all employees need to be listed including the names and titles of all staff. If you have details of the position that you wish to be filled by the visa applicant this should also be in the hierarchy chart.
Other documents that may be relevant include curriculum vitae of person who you wish to hire, job description, job adverts (less relevant now that the resident labour market test no longer exists), pages from the business website and other sites, qualifications of the applicant and documentation relating to the occupation to be filled by the applicant.
The sponsor will need to assign the applicant a Certificate of Sponsorship (CoS) before they can apply for leave to enter the UK, or remain in the UK, under a visa. The Certificate of Sponsorship is confirmation by the employer that they wish to employ a visa migrant and that the employee will be paid at the salary as stated in the CoS. The employer will meet their obligations under the visa system. It is easier if the employer wishes to employ someone currently based in the UK who is able to switch to a visa from within the UK. In most cases visa applicants who can apply from within the UK for a visa need an undefined CoS. If the visa applicants needs to apply for a visa from outside the UK, or if the applicant wishes to switch from a Tier 4 dependent visa to a visa, then the employer will need to apply for a Defined Certificate of Sponsorship. UK visa applicants also need to make sure that they gain enough points under the UK work visa points system. Please note that there are very specific English language requirements to come under the Skilled Worker visa scheme.
The Sponsor has a number of record keeping and reporting duties for the applicants that it sponsors.
1. Record Keeping Duties:
Copy of the identification page of the applicant's passport.
If the applicant had to apply for entry clearance to work for the employer, evidence of date of entry to the UK.
UK immigration status document if not in the passport
Copy of Migrants Biometric Residence Card
Migrant's contact details
Copy of the Migrant's National Insurance Number
2. Reporting Duties:
UK Visas and Immigration must be informed of the following:
If a sponsored migrant does not turn up for his or her first day of work
If a sponsored migrant is absent from work for more than 10 working days, without the sponsor's reasonably granted permission
If a sponsored migrant's period of employment has ended as a result of the migrant resigning or being dismissed
If any registration that the sponsored migrant needs to work in the UK (such as with a governing body) is ended
If the sponsor stops sponsoring the migrant for any other reason (eg if the migrant moves into another immigration route that does not require a sponsor)
If there are any significant changes in the migrant's circumstances (eg change of job or salary excluding annual pay rise)
If the Sponsor has any information which suggests that the migrant is breaching the conditions of his or her leave
If the Sponsor has any information which suggests that the migrant may be engaging in terrorism or other criminal activity (The Sponsor must also pass any such information to the Police).
Workpermit.com's team of UK Sponsor Licence and visa experts can help with Sponsor Licence applications in the following ways:
A consultation to determine if a sponsor licence application is the best choice for your business
Completing and checking your sponsor licence application online form.
Managing and submitting all the appropriate supporting documents for your Sponsor application
Preparing a lengthy and detailed covering letter dealing with the additional information required
Guidance on your employment and HR practices to make sure they comply with UK Visas and Immigration's Sponsor conditions
Advice on passing UK Visas and Immigration tests and site visits– both before and after your Sponsor application
Workpermit.com's team of specialists has over thirty years of experience in international visa services, and have helped thousands of people to study and work in the UK. We work in conjunction with OISC registered advisers who can submit your UK sponsor licence application and visa application to UK Visas and Immigration at the Home Office.
For more information and advice on UK immigration law and UK visa applications please contact us on 0344 991 9222 or at firstname.lastname@example.org
Frequently Asked Questions:
Should you apply for a Sponsor Licence?
If you are an employer and wish to employ overseas skilled workers then it is likely you will need a sponsor licence. You need to have a sponsor licence to employ Skilled Worker visa and Intra-Company migrants. Now that the Brexit transitional period has ended you will now need a sponsor licence to employ newly arriving EU migrants. Irish nationals are in the Common Travel Area and so can continue to work freely in the UK.
How long will it take to obtain a Sponsor Licence?
This will vary enormously. However, in most cases the sponsor licence is granted within three or four weeks. It seems in practice very small businesses with say one or two staff face a bigger risk of being visited by the Home Office before a sponsor licence is granted, and so processing times in these cases may be longer. There is a priority service for a Government fee of £500 that will provide a response within ten working days. There is a limited availability of only ten applications a day for the priority service, and so there will be times when demand for the service will exceed the number of places available.
What are the basic requirements for a Sponsor Licence application?
Usually a business that is already trading in the UK should be able to provide the necessary documents. You need to have at least one person (perhaps on a part-time basis) already resident in the UK that can be trusted completely who will take on roles for the Sponsor Management System such as Level 1 User, Authorising Officer, and Key Contact. Typical documents that are provided include proof of PAYE registration, employers liability insurance document, bank letter or statements and rent agreement.
Should you apply for a Skilled Worker Sponsor Licence or Intra-Company Transfer Sponsor Licence?
If you wish to have the option of employing the visa applicant permanently on a long term basis it would probably be best to apply for a Skilled Worker sponsor licence. Intra-Company Transfer visa holders usually need to switch to a Skilled Worker visa to eventually be eligible for indefinite leave to remain. Skilled Worker visa holders can in many cases apply for indefinite leave to remain at the end of five years in the UK. You do have the option of applying for both types of sponsor licence at the same time.
Can a business owner come under the Sponsor Licence and Skilled Worker visa scheme?
The good news is that since the Skilled Worker visa scheme replaced the Tier 2 visa scheme on 1 December 2020 there is no longer any restriction on shareholdings. Previously, under the Tier 2 visa scheme, you were restricted to a ten percent shareholding unless the salary was at least £159,600 per annum. Perhaps in some circumstances, a business owner may choose to come under the Skilled Worker visa scheme instead of say the Innovator visa, Start-Up visa or Sole Representative visa. You should at least have a trading business in the UK and perhaps someone resident in the UK to take on Sponsor Management role responsibilities.
Do you need an office to obtain a Sponsor Licence?
This is not strictly necessary. If you do not have an office, it may be an idea to set aside some space at home for the business. You could also find a cheap virtual office. The Government anyway, since the COVID-19 pandemic, have been encouraging people to work from home. It is important that the business has at least started trading, even if it is at a very minimal level.
Do you need to employ someone in the business before applying for a Sponsor Licence?
In practice you will need someone in the UK who has responsibility for the Sponsor Management System for the sponsor licence. The person could be an UK or Irish citizen, or temporary or permanent resident and must be able to legally take on a sponsor management role. The person should have some sort of position in the UK business such as say a director or employee. The person does not necessarily have to be on the payroll and does not have to work full-time for the UK business.
Can you sponsor relatives once you have a Sponsor Licence?
If you have a sponsor management role for the sponsor licence you cannot assign a Certificate of Sponsorship (CoS) to a partner or a close relative. Those that are counted as being relatives is quite wide ranging, and include parents, brothers, sisters, cousins, in-laws. A business owner or somebody else in the UK business could potentially employ relatives, as long as the person assigning the Certificate of Sponsorship in the Sponsor Management System is someone else. If a CoS is being assigned to a family member of someone in the organisation, then a sponsor note should be added confirming this on the Sponsor Management System.
How many people can you sponsor using the same Sponsor Licence?
You can theoretically employ an unlimited number of people during the four year validity period of the sponsor licence. Under the Skilled Worker visa scheme, you need to meet the Skilled Worker visa points requirement, obtain a Certificate of Sponsorship for each Skilled Worker visa applicant and pay the relevant Government fees. The main requirements for an Intra-Company Transfer visa are a bit different to the Skilled Worker visa, with a salary requirement of £41,500 per annum in most cases and a smaller number of skilled occupations that qualify. It will most likely remain the case that the Skilled Worker visa category will remain much more popular than the Intra-Company Transfer visa. You should also make sure that you comply with your obligations as a sponsor licence holder. If you do not do so, you could lose your sponsor licence.
What requirements does the Skilled Worker have to meet?
The Skilled Worker visa applicant to be sponsored by the employer needs to gain at least 70 points under the Skilled Worker points system. The requirements under the Intra-Company Transfer scheme are different and in many cases current overseas employees in a skilled role with a salary of £41,500 per annum or more will qualify. Typical examples of a Skilled Worker meeting the requirements are as follows:
- UK sponsor offers a job.
- Job on the Skilled Worker occupation list
- Has a degree taught in English, or passed an English language test verified by UKVI or is from an English speaking country.
- Salary for the job is at the going rate or £25,600, whichever is higher.
Salary is at the new entrant rate which is seventy percent of the going rate or £20,480, whichever is higher. In most cases this is for students applying in the UK and those under 26 years of age.
Someone on the Shortage Occupation List being paid £25,600 per annum, or at least eighty percent of the going rate, whichever is higher.
There are also many other situations where the UK work visa applicant will meet the points requirement.