Sponsor Licence Refused?

Section A: Sponsor licence application decisions

Applying for a sponsor licence can be a complex and challenging process, where any errors within this process can result in an application being refused or rejected.

If your sponsor licence application is refused or rejected by UKVI, this can have a hugely detrimental impact on your business operations and workforce planning. It is also likely to see your application fee lost.

Your sponsor licence application can either be approved, rejected or refused by UKVI.

When applying for a sponsor licence, there are various requirements that must be met under the rules, including validity, suitability and eligibility requirements. The validity requirements refer to the procedural aspects of your application, including submitting the correct documentation in support and paying the correct application fee. In contrast, the suitability and eligibility requirements refer to more substantive aspects of the application.

In the context of suitability and eligibility, UKVI will consider whether you have adequate human resource and recruitment systems in place to meet your sponsor duties, as well as whether you or anyone who will be responsible for managing the sponsorship process have any criminal convictions or immigration offences. UKVI will also consider whether you can meet the route-specific requirements for the category of workers you are looking to sponsor, for example, if applying to sponsor Skilled Workers, whether you can offer genuine employment meeting the relevant skill and salary requirements.

1. Sponsor licence refused

Sponsor licences are refused where there are more substantial or fundamental issues with the application. Refusals are more problematic for the applicant as the licence application fee will generally not be refunded and the organisation may be subject to a ‘cooling off’ period of 6 to 12 months before a new application can be made.

Your options after receiving a refused sponsor licence application will be determined by the Home Office’s stated reasons for the refusal, as specified in the notification.

If you fail to satisfy the UKVI caseworker deciding your application that you are both suitable and eligible to be approved to sponsor certain migrant workers, your application will be refused. For example, UKVI will automatically refuse your application if anyone involved in the day-to-day running of your business or key personnel nominated to manage the sponsorship process have an unspent conviction for a serious criminal or immigration offence. Equally, your application will be refused if you are unable to show that you have genuine job roles on offer meeting the minimum skill-level and salary requirements for the route in question. In contrast, if you fail to meet all of the procedural requirements for making a sponsor licence application, your application will be rejected as invalid.

2. Sponsor licence application rejected

Having a sponsor licence application rejected is entirely different to a substantive decision being made that you are either unsuitable and/or do not meet the relevant eligibility requirements to sponsor workers on the specific route for which you have sought a licence.

A rejection is simply that your application is void for procedural irregularities. Still, it is important to understand the reasons for this, in this way ensuring that you can rectify any error when re-applying or by avoiding these types of mistakes in the first place.

The Home Office would usually refund the licence application fee if mandatory validation items are missing or incorrect, resulting in a rejection.

Section B: Common grounds for sponsor licence refusals

Frequently cited reasons for licence refusals include:

1. Failure to submit the correct documentation

Unless you are a public body recognised by the UK government, such as a local authority or a company listed on the London Stock Exchange Main Market, you will need to provide a minimum of four supporting documents from Appendix A.

To confirm you are eligible for a sponsor licence, you must provide the documents listed in Appendix A of the sponsor guidance and any additional documents that UKVI may request. UKVI asks for these documents to ensure that your business is genuine and has a lawful trading presence in the UK. The only exception is for those applying under the UK Expansion Worker (GBM) route where, as an overseas business looking to expand, you must not have an existing active trading presence in the UK but must have a UK ‘footprint’.

Some of the evidence required under Appendix A will be in the form of a document, or combination of documents, while some will simply require an online check that UKVI can do without you having to send documentation to them. Equally, for certain types of applicants listed in Table 1 of Appendix A, for example, organisations applying on the Scale-up route, you may not need to send any documentation at all. However, most applications must be supported by a minimum of 4 documents drawn from Tables 2 to 4 of Appendix A including, for example, proof that you are genuine and operating lawfully in the UK, or that you have a UK ‘footprint’ and credible plans to expand to the UK.

You may also need to provide additional information, for example, if you are applying to sponsor Skilled Workers, you must provide other information about your organisation, together with why you are applying and the type of job roles you wish to fill in the UK.

Once you have submitted your online application, you must email all pages of the submission sheet, signed and dated by your Authorising Officer, together with the documents listed in Appendix A and on that sheet. If you are unable to provide the submission sheet and supporting evidence digitally, you should contact UKVI. In all cases, UKVI reserves the right to request original documents or certified copies. If you choose to or are asked by UKVI to send certified copies by post, they must meet the various strict requirements for certification. If a certifier’s details cannot be verified, or the copy does not meet the relevant requirements and cannot be verified by UKVI online instead, the document will be rejected. In turn, this may also mean that the application itself is rejected.

If any mandatory documents as required for your sponsor licence application are missing or incorrect, or you fail to submit the minimum required number of documents, your application will automatically be deemed invalid by UKVI and rejected on this basis.

2. Late filing of supporting documents

Your application will need to be accompanied by a number of supporting documents, including detailed documentation to demonstrate that you are a genuine company or organisation operating lawfully in the UK. These must be submitted within five working days of your initial application. Failure to meet this deadline can result in an unsuccessful application.

Where the Home Office has requested further documents and these are not provided within the stipulated timeframe, the application will be refused.

3. Incorrect supporting documents

The rules relating to the grant of sponsor licence applications can be complex, not least in making sure that you comply with the documentary requirements under Appendix A. Failure to provide the correct documentation -within the five-day deadline from form submission – is one of the most common pitfalls when applying for a sponsor licence.

Please note, in the event that you are unable to provide the necessary documentation in support of your application, or to do so in time, you risk your sponsor licence application being significantly delayed or even denied.

4. Failing the genuineness test

If your application was refused because you have been deemed not to have met the genuineness test, the situation is slightly more complex.

If the Home Office believe you were acting in good faith but were simply unable to meet the genuineness test requirements, you will need to build and evidence a robust business case with supplementary information to satisfy the Home Office as to why you need the particular foreign worker for the specific role. No cooling-off period applies in this instance, and a new application can be made straight away.

If, however, the Home Office allege the organisation has acted in bad faith, for example submitting a document they don’t believe is genuine, or you deliberately tried to defraud by presenting a role as being at the required skill level when in reality the role is at a more junior level, they can bar the organisation from submitting a new application for between 6 months and 5 years (‘cooling-off period’).

If you believe the Home Office is factually incorrect with their allegations, you may consider submitting an application to challenge the decision with reasons and evidence as to why they were factually incorrect.

5. Falsified supporting documents

Where fraudulent or falsified documents have been submitted, the Home Office can refuse your application and, as a punitive measure, your organisation may be subject to a cooling-off period before you can reapply.

6. Unsuitable key personnel

The nominated key personnel responsible for carrying out your sponsorship duties must meet suitability criteria and will be subject to background checks as part of the licence application process. If any of your key personnel or those with ownership or directorship found by UKVI to have a history of immigration violations, or unspent criminal convictions for a relevant offence such as fraud or money laundering, this can give grounds for a licence refusal.

For example, one requirement is that you nominate at least one Level 1 User who is both an employee/director/partner and a settled worker (subject to limited exceptions, e.g., certain routes including UK Expansion Worker). Failure to meet this leads to refusal.

7. Failed compliance visit

Having conducted a site visit prior to the grant of any licence, if UKVI are not satisfied that your HR systems and recruitment practices are adequate such that you are able to comply with your duties, or that key personnel are not sufficiently trustworthy or capable of carrying out your sponsorship duties, the application can be refused.

8. Caseworker error

If you can identify a factual error in the processing of your application, you can request for the error to be corrected, for example, if they have overlooked a piece of submitted documentation. In such cases, you will need to notify the Home Office of the error within 14 calendar days from the date of the refusal.

9. Previous immigration breaches

If the applicant has previously held a sponsor licence which was subsequently revoked, the Home Office may refuse the new application. Take advice on how to approach a new licence application following enforcement action, as this is likely to demand extensive preparation and consideration of compliance and licence management practices within the organisation. In addition, applicants that have previously been fined under the prevention of illegal working regime can expect to be subject to a longer cooling off period.

Section C: Sponsor licence refused? Next steps

If your sponsor licence application is refused by the Home Office, the next steps will depend on the reason for refusal. Importantly, there is no right of appeal or Administrative Review, but the following may be open to you, depending on the circumstances.

1. Error Correction Request (If Applicable)

One option is challenging the licence application refusal by way of an Error Correction Request, or reconsideration, request. An Error Correction request can only be made where the decision is a result of caseworker factual error or where relevant supporting documents that had been correctly submitted have been overlooked or not been considered. The applicant has only 14 calendar days from the date of the decision to make an Error Correction request. Applicants will usually receive a response up to 28 working days after submission.

Note that this is not this is not a full reconsideration and no new evidence is accepted.

2. Make a new application

If there is no right to reconsideration, in most cases you will need to address the issues raised in the refusal letter before submitting a new application.

Some refusals result in a cooling-off period, meaning the organisation cannot submit a new application for up to 12 months. If the refusal was due to a serious compliance breach, this period could be extended to 5 years. If no cooling-off period applies, a new application can be submitted immediately after addressing the reasons for refusal.

3. Judicial Review

If a sponsor licence application refusal was arguably unlawful, irrational or procedurally improper, you may be able to apply for a judicial review of the decision.

Judicial review is a legal process where a judge examines whether a public body, such as the Home Office, acted lawfully in making a decision. This process does not assess the merits of the decision itself but rather whether the correct legal procedures were followed.

Even if there are grounds for judicial review, it may not always be the best course of action, as the threshold for success is high. You would need to show that the refusal was one that no reasonable decision-maker could have reached or that there was a fundamental procedural error in the way the decision was made.

Strict time limits also apply meaning you will need to act quickly; judicial review applications have to be submitted within 3 months of the refusal decision.

This is a highly complex area, and you are advised to take specialist guidance on whether a judicial review could be appropriate and open to you.

4. Consider alternatives

Depending on the circumstances, if you are unable to secure a sponsorship licence, or if the timescales involved will impact your operations, take professional advice to understand if alternative options or routes are open to you, such as visas that do not require employer sponsorship.

Section D: Reapplying following a sponsor licence refusal

Although there is no right of appeal, and judicial review of decisions can be challenging, you may be permitted to reapply straight away if the refusal was on the grounds of failure to provide documents or information requested by a deadline for reasons beyond your control or because the online application was submitted by a representative.

You will, however, need to check if a cooling-off period applies before you can submit a new licence application to UKVI. The length of the cooling-off period can vary typically between six months to up to 12 months (although this can be up to 5 years) from the date of the refusal letter, depending on the reasons for the initial refusal.

In the event that your application was refused because you received a civil penalty for employing illegal workers, you will have to wait a period of twelve months after the date the penalty became payable before reapplying.

In some more serious cases, you can only apply for a new licence after five years have passed since the date the penalty was issued.

1. How to make a successful sponsor licence application

If you opt to reapply for a sponsor licence, ensure your new application addresses the specific grounds for the initial refusal.

To be eligible for either a sponsor licence you will first need to show that your business is both genuine and operating lawfully within the UK. In this respect, you will be required to provide verifiable documentary evidence from Appendix A of the guidance for sponsors. Additional documents may be helpful and valuable in evidencing your eligibility, such as organograms.

Further, when submitting your sponsor licence application, you will be required to nominate key personnel to undertake the duties and obligations as required under the licence. As such, these individuals, as well as those involved in the day-to-day running of your business, must be honest, dependable and reliable. Rules also apply as to who can take on the key personnel roles; level 1 users must, for example, be an employee, partner or director of the organisation.

Finally, you must be able to show that your business has both adequate human resource systems and recruitment practices in place to meet the necessary sponsorship duties on an ongoing and consistent basis. This will include keeping suitable records of your employees, carrying out right to work checks and reporting any changes in migrant worker circumstances.

Please note, if you are applying under the skilled worker visa category, you will also need to demonstrate to UKVI that you can offer genuine employment that meets the required skill level and appropriate rates of pay.

If you are reapplying for a licence after having already been refused, you should prepare to receive a compliance visit from the Home Office on submission of your new application. Officials will be looking for confirmation that you have the necessary processes, systems and policies in place to support ongoing licence compliance and for assurance that the initial grounds for refusal have been adequately addressed.

Section E: Sponsor licence application rejected

Rejections generally result from applications that are deemed invalid. This is usually due to relatively minor issues with the application that can be rectified by the applicant.

The fee for a rejected application would usually be refunded, allowing the applicant to make a revised application.

There are various different reasons that can result in having a sponsor licence application rejected as invalid, including a failure to pay the correct application fee, or a failure to send the submission sheet to UKVI within the time prescribed or submit the correct supporting documentation. It could also include a failure to ensure that the Level 1 User appointed in your sponsor licence application is an employee, partner or director in your organisation.

1. Failure to pay the correct application fee

The cost of applying for a sponsor licence can vary, depending on the type of licence sought, where there are two types of licence: a ‘Worker’ and ‘Temporary Worker’ licence, although you can apply for both. You can also apply to add one or the other to an existing licence.

The ‘Worker’ licence is for employers looking to sponsor migrant workers in long-term job roles in the UK, such as the Skilled Worker route, or the Senior or Specialist Worker route under the Global Business Mobility (GBM) umbrella. The ‘Temporary Worker’ licence is to sponsor workers in more short-term roles, including the remaining four GBM routes which, for the purposes of sponsor licensing fees, are classed as ‘Temporary Worker’ routes.

The cost of applying for a sponsor licence on one of the ‘Temporary Worker’ routes is £574, while the cost of applying for a licence on a ‘Worker’ route is either £574 for small or charitable sponsors and £1,579 for medium or large sponsors. The cost to apply for both types of licence at the same time will also depend on the size and charitable status of your business, so £574 or £1,579 respectively. There will be no fee for a small or charitable sponsor to add a ‘Worker’ licence to an existing ‘Temporary Worker’ licence, with a £1005 or a medium or large sponsor to do the same. However, there will be no fee for a sponsor of any size to add a ‘Temporary Worker’ licence to an existing ‘Worker’ licence.

The responsibility to pay the appropriate licence fees rest with the employer.

2. Failure to send the submission sheet

On completion of your online application and payment of the appropriate fee, you will be required to print out and complete a submission sheet. This must include details of your organisation, a list of the mandatory and primary documents you are providing, plus details of the fee paid. All pages of the submission sheet must be signed and dated by your Authorising Officer, including a declaration from you that you agree to meet all of the duties associated with being a licensed sponsor. You will then send this printout, together with your other documentation, to UKVI’s Sponsor Licensing Unit within 5 workings days.

You have to email all pages of the signed submission sheet and mandatory documents within 5 working days. If a mandatory item is missing or incorrect, the application is invalid and rejected (fee refunded).

If non-mandatory documents are missing, UKVI emails you and gives 5 working days to provide them; failure leads to refusal, with no refund.

3. Failure to appoint an appropriate Level 1 User

The online sponsor licence application form requires you to give certain responsibilities to members of your staff, some or all of whom will have access to the Sponsor Management System (SMS), provided you are approved for a sponsor licence. The SMS is the online UKVI portal used to administer your day-to-day duties and sponsorship activities, and to discharge your obligations as an employer sponsoring migrant workers.

Referred to as your key personnel, the individuals that you will need to appoint as part of your licence application include an Authorising Officer, a Key Contact and a Level 1 User, although you can appoint additional Level 1 and Level 2 Users having been approved for a licence. When it comes to the Authorising Officer and Key Contact, although these can be one in the same person, they must be a paid member of staff or engaged by you as an office-holder. In contrast a Level 1 or Level 2 User can be employed by a third party organisation to whom you have contracted some or all of your human resources functions. However, UKVI will reject your application if you do not have at least one Level 1 User who is an employee, partner or director in your organisation.

4. Invalid sponsor licence application

On receipt of your submission sheet and supporting documentation, this will be filed by UKVI ready to be matched up with your electronic application. It is at this early stage that your sponsor licence application will be initially assessed to determine if this is valid, before being made available to a designated UKVI caseworker for a substantive decision.

At the validation stage, a number of checks will be conducted, including checking the correct application fee has been paid, checking the submission sheet has been signed by the Authorising Officer and filed within the prescribed timeframe, and ensuring that all supporting documentation has been submitted. If the submission sheet contains an original signature and lists the provided documents, the caseworker will then go on to check that the submitted documents are appropriate to the type of sponsor and the sector in which they operate with reference to Appendix A of the sponsor guidance.

If mistakes have been made and are identified during the validation stage, your application will not be assessed on its merits but rejected outright for being invalid.

Having a sponsor licence application rejected for being invalid can cause significant problems for a business, where any delay in being approved to sponsor migrant workers will impact the worker’s ability to apply for a visa to be able to start their new job role.

The good news is that a rejection decision is not the same as a refusal decision, where a rejection simply means that your application was not procedurally compliant. This is not an indication that you are ineligible for a sponsor licence and nor will you need to wait for any cooling-off period to pass, as you may need to do following a refusal decision. Importantly, if you fail to meet all the eligibility and suitability criteria, UKVI will refuse your application and you may not be eligible to re-apply for at least 6 months. In contrast, if your application is rejected, you will simply need to identify the issue that led to the rejection decision and re-apply, ensuring that the same mistake is not repeated.

In some cases, depending on the nature of any procedural error, UKVI may give you the opportunity to put this right, for example, where there are any missing documents specified in Appendix A, other than mandatory documents. However, any failure to provide the information or documentation requested within 5 working days — or to contact UKVI by email within the deadline date to notify them that you have forwarded the additional paperwork by post — your application may be ‘refused’, rather than merely ‘rejected’.

It is also worth bearing in mind that even if an application is rejected outright, and returned without further consideration, the application fee will usually be refunded. If your application is refused, the application fee will be non-refundable. Still, it is preferable to ensure that your application is procedurally compliant from the outset, even if your fee is refundable and you have the option to immediately re-apply, where seeking expert advice from an immigration specialist is always strongly advised prior to submission.

Section F: Summary

A sponsor licence refusal or rejection can be highly disruptive for employers, with outcomes ranging from procedural setbacks to long-term restrictions on future applications. The Home Office applies strict rules on validity, eligibility and suitability, meaning even minor errors can invalidate an application. A refusal usually results in the loss of the fee and may trigger a cooling-off period, while a rejection allows resubmission once errors are corrected. Employers must therefore ensure robust HR systems, accurate documentation and compliant key personnel appointments from the outset. Careful preparation, awareness of potential cooling-off consequences and timely expert advice are critical to protecting recruitment plans and business continuity.

Section G: Need assistance?

In the event that your sponsor licence application is refused or rejected by UKVI, this can have a hugely detrimental impact on your business if you are recruiting foreign nationals. The application process is demanding and costly for employers, particularly where they have already found a suitable candidate to hire under the skilled worker visa. A delayed or refused application can mean losing out on your candidate and loss of your investment in the recruitment process to date.

Given what is at stake, it will be important to understand your options if you have received a refusal or rejection from the Home Office.

DavidsonMorris’ specialist business immigration lawyers work with UK employers on all aspects of the UK sponsor licence, from the initial application, dealing with refusals, ongoing management of the licence once issued and with the renewal application after four years. We can also support with Home Office compliance penalties such as suspensions and revocations. With our compliance audit service you can help ensure your organisation stays ‘match ready’ in the event of a Home Office compliance visit.

Even if your sponsor licence application is approved, you may still be at risk of having your licence revoked, not least if you fail to comply with your sponsorship duties or you otherwise pose a threat to immigration control.

You will initially be granted an A-rated sponsor licence, following which you can start assigning CoS to migrants who you wish to work for you. You will also be given access to the Sponsor Management System (SMS). This is an online portal where you can manage your licence and report certain migrant activities, for example, if an individual fails to report to work.

However, if you are found to be in breach of your duties, UKVI may decide to downgrade your licence to a B-rating. This will require you to pay for a sponsorship action plan to reinstate your original A-rating. That said, in serious cases, UKVI may decide to suspend or revoke your licence altogether.

If you have a question or need help with a sponsor licence application, contact us.

Section H: Sponsor licence refused FAQs

Why was my sponsor licence application refused?

A sponsor licence application can be refused for several reasons, including failing to meet the eligibility requirements, not providing the correct supporting documents, concerns over compliance history or issues with key personnel named in the application. The Home Office may also refuse an application if they believe the business cannot meet its sponsorship duties.

Can I challenge a sponsor licence refusal?

There is no right of appeal against a sponsor licence refusal. However, you may be able to request a reconsideration if the refusal was due to a factual error or missing information that was submitted but overlooked by the Home Office. If the refusal was due to non-compliance, you will need to correct the issues before reapplying.

How long do I have to wait before reapplying?

If your application was refused due to non-compliance, you may be subject to a cooling-off period before you can submit a new application. The length of this period depends on the reason for refusal and whether any breaches of immigration law were identified.

What documents are needed to reapply for a sponsor licence?

The required documents depend on the type of business and the sponsorship route. Common documents include proof of trading, financial records, employer liability insurance and evidence of HR systems to monitor sponsored workers. If your initial refusal was due to missing documents, ensure all required paperwork is included in the new application.

Can I apply for a sponsor licence after a previous revocation?

If your sponsor licence was revoked, you may face a longer cooling-off period, typically up to five years in serious cases. You must demonstrate that the reasons for revocation have been fully addressed before reapplying. We can advise if are unsure about your options and next steps.

Can I continue employing skilled workers if my licence is refused?

If you do not hold a valid sponsor licence, you cannot legally employ new overseas workers under the Skilled Worker or other sponsored routes. Existing sponsored workers may also be affected if their visa renewal depends on your sponsorship.

Will a previous refusal affect future applications?

A previous refusal does not automatically prevent you from applying again, but repeated failures may raise concerns with the Home Office. Ensuring full compliance and addressing previous issues before reapplying is essential to avoid further refusals.

Section I: Glossary

Section J: Additional Resources and Links