Section A: What is a Sponsor Licence A Rating?
For routes other than UK Expansion Worker, a sponsor licence will be rated either ‘A’ or ‘B’.
An A rating is the Home Office’s confirmation that a sponsor is fully compliant and trusted to assign Certificates of Sponsorship (CoS) without extra restrictions. Most licences are issued with an A rating at grant, except on the UK Expansion Worker route which is assessed differently. If standards slip, the licence can be downgraded to a B rating, which limits sponsorship and requires a paid action plan to fix failings before the rating can be restored. Maintaining an A rating depends on strong HR systems, accurate SMS use, timely reporting and clean audit outcomes.
1. What does ‘A rating’ mean for a sponsor licence?
An A rating will be awarded when you are granted a licence, provided you have adequate systems in place to meet your sponsor duties and are trusted to act in a way appropriate to those licensed by UKVI. You will not be granted a licence if you are not able to achieve an A rating. Further, after your licence has been approved, UKVI may downgrade you to a B rating if you fail to discharge your sponsor duties or UKVI has other concerns about you.
Your licence rating will appear on the published online register of licensed sponsors which lists ‘Worker’ and ‘Temporary Worker’ sponsors, with information about the category of workers they are licensed to sponsor and their sponsorship rating.
As an A rated sponsor, you will be able to assign CoS to new migrant workers on the route(s) for which you are licensed to sponsor. This will enable each recruit to apply for a suitable work visa. Under an A rating sponsor licence, you will also be able to assign CoS to existing migrant workers looking to stay longer in the UK and continue working for you.
You must normally be an A rated sponsor to be eligible to assign CoS, with only limited exceptions to this rule. This could be where you have a Provisional rating on the UK Expansion Worker route and the person to whom the CoS is assigned is also your AO. It could also be where you have a B rating sponsor licence and the worker (provided this is not a Scale-up Worker) is applying for permission to stay on the same route as in their last grant of leave, in circumstances where you assigned the CoS which led to their previous grant of leave and you are continuing to sponsor the worker in question.
There is no longer a requirement to apply to renew a sponsor licence every 4 years. However, maintaining an A rating throughout the licence period remains fundamental. UKVI retains the power to suspend, downgrade or revoke a licence at any time if it determines that the sponsor is failing to comply with its duties. Employers must therefore maintain robust HR and compliance systems for the full licence term to ensure that the A rating, and with it the ability to recruit and retain overseas workers, is preserved.
A rating status is more than an administrative label. It reflects UKVI’s assessment that your organisation is fully trusted and compliant. For employers, this means access to the overseas talent pool and the ability to issue CoS without interruption. Conversely, losing the A rating can bring immediate restrictions on new recruitment and exposes the business to reputational and operational risks.
Rating | When applied | Sponsor rights | Restrictions |
---|---|---|---|
A | Granted on approval of a licence where UKVI is satisfied the organisation has adequate systems and can be trusted to meet sponsor duties. | Assign Certificates of Sponsorship (CoS) to new recruits on approved routes and to existing sponsored workers for extensions or changes as permitted. Appears as A rated on the public register. | Ongoing compliance required. Subject to audits and information requests at any time. Risk of downgrade, suspension or revocation if duties are not met. |
B | Applied after UKVI finds non-compliance or concerns that fall short of immediate suspension or revocation. | Usually may continue sponsoring existing workers, including assigning CoS to extend permission on the same route where permitted (Scale-up excluded). Cannot assign CoS to new hires until rating is restored. Must pay for and complete a Home Office action plan within the set timeframe. | Cannot assign CoS to new hires until rating is restored. Must pay for and complete a Home Office action plan within the set timeframe. Limited exceptions apply, and Scale-up Worker is excluded from the extension exception. |
Provisional | UK Expansion Worker route only, where the Authorising Officer (AO) is overseas and will assign a CoS to themselves to obtain entry clearance. | Allocation of one CoS in the AO’s name to enable the AO to apply for a visa. Rating can be upgraded to A after the AO is granted a visa and updates details on SMS. | No wider recruitment permitted until upgraded. If the AO does not update SMS after visa grant, the licence remains limited and cannot be used to sponsor additional workers. |
For sponsors on the UK Expansion Worker route, where the Authorising Officer (AO) is an employee of the overseas business and will be assigning their own Certificate of Sponsorship (CoS) to apply for entry clearance to the UK, you will initially be given a Provisional rating and allocated just one CoS to be assigned in the AO’s name. Your AO can upgrade to an A rating, and request additional CoS using the Sponsorship Management System (SMS), once they have been granted a visa and updated their details via the SMS. If the AO does not update their details following the grant of their UK visa, the licence will remain limited under a Provisional rating and cannot be used for broader recruitment purposes.
2. What is a B rating for a sponsor licence?
Being a UK sponsor comes with significant responsibility, including various duties that must be discharged to comply with the rules and keep your A rating sponsor licence intact. This is because if you are found to be in breach of the rules, enforcement action can be taken against you by UKVI for non-compliance, including downgrading your licence to a B rating.
Throughout the validity period of your licence, which is now granted for 10 years, UKVI will rate you as either A or B, according to its ongoing assessment of your ability to comply with your sponsor duties and to act in an appropriate way as a licence holder. An assessment could be made as part of an onsite or digital compliance check, taken on the basis of a reasonable suspicion that you have breached your sponsor duties or are otherwise no longer suitable to hold a licence. An assessment may also be triggered by checks with other government agencies, including HMRC, or any other information that may come to light, for example, when considering applications from sponsored workers or through allegations from members of the public.
If you have failed to discharge your sponsor duties or are found not to be acting in a way conducive to those licensed by UKVI, you may be downgraded to a B rating. As a B rated sponsor, you will need to comply with (and pay a fee for) a time-limited action plan, drafted by the Home Office with the steps you need to take to regain an A rating. If you do not meet the steps set out in your action plan, and do so within the specified time limit, your licence may be revoked.
During the period you hold a B rating, your ability to sponsor is restricted. You will generally not be able to assign CoS to new workers, with very limited exceptions. This means that while you can usually continue to employ your existing sponsored workers, you cannot expand your overseas recruitment until your A rating is reinstated. For employers who rely on international talent pipelines, this can cause significant disruption to workforce planning and recruitment strategies.
If you are licensed on multiple routes, you will be given a rating for each type of licence. That rating will apply to all routes in which you are licensed that are covered by that type of licence, where you cannot have different ratings for individual routes. For example, if you are licensed under Skilled Worker and Senior or Specialist Worker, both of which are ‘Worker’ routes, and UKVI downgrade you due to failings in respect of only one of those routes, your licence rating will show on the register as ‘Worker (B rating)’. Equally, if you are licensed under Creative Worker and Charity Worker, both of which are ‘Temporary Worker’ routes, and UKVI downgrade you due to failings in respect of only one of those routes, your licence rating will show on the register as ‘Temporary Worker (B rating)’.
If you are downgraded to a B rating sponsor licence, you can continue to assign CoS to existing workers, enabling you to keep your current migrant workforce intact. However, if your sponsor licence rating is not upgraded within the time permitted, you may lose your licence altogether, and with it the ability to retain any sponsored workers on your payroll.
It is also important to note that not all non-compliance results in a downgrade first. Where UKVI finds evidence of serious breaches, such as illegal working, a civil penalty for employing workers without permission, or a serious criminal offence, it may move directly to suspension or revocation without offering the opportunity to improve through a B rating and action plan.
3. How to check a sponsor licence rating
Employers and workers can confirm the rating of a sponsor licence by checking the official Register of Licensed Sponsors published by UKVI. The register is updated regularly and lists all organisations currently authorised to sponsor overseas workers. Each entry shows whether the sponsor is rated A or B and identifies the visa categories for which they are approved.
The register is available as a downloadable spreadsheet from the government website. To find a particular organisation, you can search by business name or filter by licence type. The listing will indicate whether the licence is for ‘Worker’ or ‘Temporary Worker’ routes and display the current rating. Where a sponsor has been downgraded, this will be shown alongside the licence type. If a licence has been suspended or revoked, the organisation will no longer appear on the register.
For workers considering a job offer, checking the register ensures that the employer is currently authorised to sponsor the role. For businesses, it is a way to verify their own public listing and ensure that the information shown reflects their current rating and sponsorship permissions.
DavidsonMorris Strategic Insight
A licence downgrade from an A to B rating is deliberately disruptive. It is meant to act as a shock, showing employers how quickly their ability to recruit internationally can be taken away.
Do not take your A rating for granted. The rating system is designed to penalise any fall below sponsor guidance standards, and the consequences extend beyond the £1,579 action plan fee. Financial losses, recruitment delays and operational disruption all follow. The Home Office has wide powers to inspect and investigate, and even minor breaches or record-keeping errors can trigger enforcement, with a downgrade often the first sanction.
Section B: Sponsor Licence Rating Downgrades
There are various reasons why a sponsor licence may be downgraded. However, in broad terms, if UKVI believes that you no longer have the necessary processes or people in place to comply with your sponsor duties, typically following a post-licence compliance visit or other compliance checks, your A rating sponsor licence may be downgraded to a B rating.
If UKVI conducts a compliance check on you after your licence has been granted, they will judge you against a number of criteria to decide whether to allow you to keep your licence or what other enforcement action to take, including downgrading your licence rating.
For each of the following criterion, they will give you a score of either ‘met’ or ‘not met’:
- Human resources systems: whether you have adequate systems in place that allow you to know when a sponsored worker has not turned up for work or to identify when their current permission is coming to an end
- Convictions and civil penalties: whether or not you have any unspent criminal convictions for a relevant offence or have been issued with a relevant civil penalty, where UKVI will be looking for any recent convictions following the grant of your sponsor licence. A civil penalty for illegal working can, in practice, result in revocation rather than downgrade
- Migrant compliance: whether you are employing any workers, sponsored or not, who are in breach of the conditions of their immigration permission, for example, a Student who is working more hours than they are allowed to under their conditions of stay
- Employment: whether you can offer employment which meets the criteria for the relevant immigration route, such as genuine vacancy, salary and skill-level. UKVI will also cross-check payroll records against HMRC data to ensure sponsored workers are being paid at or above the required threshold
A downgrade decision can also be made where UKVI has asked for information held by your organisation, but you have failed to comply with that request, or you have otherwise failed to co-operate with UKVI as required under your duties as a sponsor licence holder.
Generally speaking, a decision to downgrade and put in place a sponsorship action plan will only be made to address fairly minor breaches of duty or non-compliance. For more serious breaches, such as the commission of a serious criminal offence, a civil penalty for illegal working, or a serious violation of the immigration rules, this can result in licence suspension or immediate revocation.
1. How to reinstate from B to A rating
If a decision is made by UKVI to downgrade your A rating sponsor licence to a B rating, you will be required to pay for and follow an action plan to restore your rating. UKVI will write to you to explain what action is proposed, and the reasons for this, giving you 20 working days from the date of that letter to respond in writing, together with any evidence. UKVI will consider any written representations, but you will not be offered an oral hearing.
If a decision is made by UKVI to proceed with your sponsor licence downgrade, you will be sent a request for payment of £1,579 to cover the cost of the action plan. You cannot be forced to pay the fee, nor to comply with the action plan, but if the fee is not paid within 10 working days, your sponsor licence will be revoked. If you choose to accept the action plan, the fee must be paid using the ‘Action plan details’ function in your SMS account.
Having paid the action plan fee, you will be given a period of 3 months to comply with the action plan and make the necessary improvements to ensure that your licence rating is reinstated. This could include, for example, improving control over staff who assign CoS, improving communication between different branches so it is clear when a sponsored worker has not turned up for work, or making improvements to your record-keeping.
At the end of the 3-month period, UKVI will conduct a further compliance check to establish whether you have met all of the measures as set out under the action plan. At this stage, provided you have made the necessary recommended improvements and UKVI has no further concerns, you will once again have an A rating sponsor licence.
It is essential that you comply with the action plan to avoid your licence being revoked. It is also worth bearing in mind that if UKVI identify other areas of concern, you may be asked to comply with a second action plan, for which you must pay an additional fee. Where compliance concerns persist, multiple action plans or repeated failings are usually regarded as evidence of systemic weaknesses and can result in revocation of your licence rather than further opportunities to improve.
The Home Office has discretion to extend the action plan period in certain cases, but sponsors should not rely on this. Employers are expected to take immediate remedial steps and provide evidence that their systems and processes meet the requirements. Failing to do so within the timeframe will almost always mean the permanent loss of the sponsor licence.
2. How to avoid a sponsor licence downgrade
There are various duties associated with sponsoring migrant workers, where it is essential that those within your organisation responsible for managing the sponsorship process understand what is required of them to avoid an A rating sponsor licence downgrade. These duties include reporting any changes in a migrant worker’s circumstances, such as where they have failed to start the role for which they are being sponsored or are absent from work without your permission. You must also report any changes to the key personnel tasked with monitoring the migrant workforce, as well as changes to the organisation itself. In addition to the sponsor’s reporting duties, there are right to work checks that must be correctly conducted and record-keeping duties that must be complied with at all times.
Duty | What UKVI requires | Common failings | Risk if breached |
---|---|---|---|
Reporting | Report changes in migrant circumstances (non-attendance, unauthorised absence, change of role) and organisational changes within required timeframes. | Late or missed reports, unclear reporting lines, failure to notify changes in key personnel. | Downgrade to B rating, action plan imposed, possible revocation for repeated or serious omissions. |
Record-keeping | Maintain records required under Appendix D, including contact details, right to work checks and employment contracts, and keep them audit-ready. | Incomplete files, missing documents, storing records in inconsistent formats or across multiple systems. | Compliance failings noted at audit, downgrade, or revocation if records are judged unreliable. |
Right to Work Checks | Conduct checks correctly before employment and repeat follow-up checks where required. | Incorrect document verification, no re-checks, over-reliance on copies or expired documents. | Risk of civil penalty up to £60,000 per worker, licence downgrade or revocation. |
Salary Compliance | Pay sponsored workers at or above the salary threshold for their visa route, in line with contracted hours and job description. | Underpayments, unlawful deductions, discrepancies between SMS data and HMRC payroll. | Downgrade or immediate revocation where systemic underpayment is found. |
Cooperation | Provide information requested by UKVI promptly and allow full access during site visits or digital audits. | Delays in submitting evidence, inconsistent responses, obstructing UKVI officers. | Licence suspension or revocation for non-cooperation. |
Providing sponsorship training for key personnel can be an effective way of ensuring that your AO, Key Contact and SMS-users know exactly what is required of them. You should also secure expert advice from an immigration specialist in the event of any uncertainty, and especially if you have been notified of a UKVI compliance visit or compliance concerns. You can then take steps to ensure that your HR systems and recruitment practices are in order to help minimise the prospect of being penalised for inadequate processes.
Salary compliance is a frequent focus of UKVI audits. Cross-checks with HMRC mean that any underpayments or payroll inconsistencies will quickly be identified. Sponsors must ensure that salaries meet or exceed the thresholds for the relevant immigration route and that any permitted deductions are applied correctly. Failure to meet the salary requirement is one of the most common reasons for downgrades or revocations.
UKVI is also increasingly carrying out digital compliance audits, sometimes with shorter deadlines for submitting evidence. Employers must therefore maintain audit-ready records at all times, ensuring that documents required under Appendix D are complete, accurate and readily accessible. Any disorganisation or gaps in record-keeping can be treated as non-compliance.
As a sponsor licence holder, you can only be downgraded twice during the validity period of your licence, which is now granted for 10 years. A third downgrade will result in licence revocation. Even before reaching that threshold, repeated compliance failures will be viewed as systemic and can accelerate revocation. You would be able to reapply for a licence, but you would need to wait at least 12 months before being eligible to do so. There would also be no guarantee that your application would be approved, where UKVI would again need to be satisfied that you have adequate systems in place to meet your sponsor duties and are trusted to act in a way appropriate to those licensed by UKVI to sponsor migrant workers.
DavidsonMorris Strategic Insight
A downgrade to a B rating means a recruitment freeze on new overseas hires, often at a time when employers are most dependent on sponsored talent to fill roles.
The Home Office charges £1,579 for the action plan, but the greater cost is the disruption to hiring. Losing candidates, delaying projects and damaging business continuity all carry heavier consequences. There is also reputational risk. Your downgraded rating is displayed publicly on the sponsor register, signalling to competitors, clients and prospective employees that UKVI has compliance concerns about your organisation.
Section C: Summary
An A rating sponsor licence is the foundation of an employer’s ability to recruit and retain overseas workers. UKVI awards an A rating only where it is satisfied that the organisation has robust systems in place and can be trusted to comply with its sponsorship duties. The rating is not a one-time approval. It is subject to ongoing assessment throughout the 10-year validity of the licence.
Where UKVI identifies shortcomings, either through a compliance visit, digital audit, or intelligence from third parties, it can downgrade the licence to a B rating. A downgrade does not end a sponsor’s ability to employ existing workers but it effectively blocks access to new overseas recruitment. Employers must then comply with a Home Office action plan, at cost and within strict timescales, to have the A rating reinstated. Failure to meet the action plan requirements or repeated downgrades will usually result in licence revocation.
Some breaches, such as illegal working, salary underpayments or serious criminal offences, can lead directly to suspension or revocation without the opportunity of a B rating. In such cases, the employer loses the licence completely, leaving them unable to sponsor new or existing workers. For many organisations, this means an immediate impact on business continuity, workforce stability and reputation.
Maintaining an A rating is therefore central to long-term workforce planning. Sponsors must commit to continuous compliance, accurate record-keeping, effective HR processes, and proactive oversight of their sponsorship duties to safeguard their licence and the employees who rely on it.
Section D: Need Assistance?
DavidsonMorris are sponsor licence specialists. If your sponsor licence has been downgraded or you have received a Home Office compliance notice, take immediate action to protect your ability to sponsor workers. Our experts provide specialist advice on sponsor licence ratings, action plans and UKVI compliance. We help employers address immediate risks and put in place systems that meet Home Office requirements.
Speak to our team today for guidance on safeguarding your licence and maintaining your A rating.
Section E: A rating sponsor licence FAQs
What is an A-rating sponsor licence?
An A-rating sponsor licence is the status granted by UK Visas and Immigration (UKVI) to employers who meet all sponsorship compliance requirements. It confirms that an organisation is fully trusted to sponsor workers under the routes for which it is licensed. An A rating is required in almost all cases before Certificates of Sponsorship (CoS) can be assigned to new recruits.
Why is an A-rating important for employers?
Holding an A rating allows employers to assign CoS to new overseas recruits and to extend sponsorship of existing staff. It also ensures the business remains listed on the UKVI Register of Licensed Sponsors, which is often checked by candidates, advisers and competitors. Without an A rating, the ability to expand a workforce with sponsored talent is severely restricted.
How can an employer maintain an A-rating?
Employers must comply with all sponsor duties, including keeping accurate and accessible records, reporting changes promptly, carrying out correct right to work checks, paying sponsored workers at or above the required salary level, and responding to UKVI requests. Regular internal audits and training for key personnel help ensure standards are met consistently over the full 10-year licence period.
What happens if an employer fails to meet compliance requirements?
If UKVI identifies non-compliance, the licence may be downgraded to a B rating. While downgraded, the employer cannot sponsor new workers and must pay for and follow a Home Office action plan. If the plan is not completed successfully, or if breaches are serious, the licence can be revoked, leading to the loss of all sponsored workers.
Can an employer lose their A-rating without warning?
UKVI can conduct announced or unannounced compliance visits, request documents with tight deadlines, and check payroll against HMRC data. If serious breaches are found, the licence can be suspended or revoked immediately without a downgrade stage. Sponsors must therefore be audit-ready at all times.
What should an employer do if their licence is downgraded?
The employer must accept and pay for the action plan, priced at £1,579, and then complete the specified steps within three months. At the end of the plan, UKVI will reassess compliance. If the improvements are accepted, the licence will return to A rating. If not, the licence may be revoked.
Can an employer appeal against a downgrade?
There is no statutory right of appeal against a downgrade. An employer may make written representations within 20 working days of notification, but UKVI is not obliged to change its decision. Judicial review is the only form of legal challenge, but it is costly and limited in scope.
How many times can a sponsor be downgraded?
A sponsor can only be downgraded twice during the 10-year validity of the licence. A third downgrade results in revocation. In practice, repeated non-compliance may lead to revocation earlier if UKVI concludes that the organisation has systemic failings.
How much does a Home Office action plan cost?
The Home Office charges £1,579 for an action plan. Each plan must be paid for separately, meaning that if UKVI identifies new areas of concern, the sponsor may be required to pay again for a second plan. Multiple plans in a short period are a strong indicator to UKVI of serious compliance weaknesses.
Section F: Glossary
Term | Definition |
---|---|
A-Rating Sponsor Licence | The highest rating given by UK Visas and Immigration (UKVI) to employers who fully comply with sponsorship duties and immigration rules. |
B-Rating Sponsor Licence | A downgraded licence status assigned to employers who fail to meet compliance requirements. Employers with a B rating must complete an action plan before they can regain an A rating. |
Sponsor Licence | A permit issued by UKVI allowing UK businesses to sponsor skilled foreign workers under certain visa routes. Licences are granted for 10 years, subject to compliance. |
UK Visas and Immigration (UKVI) | The government agency responsible for visa applications, sponsorship compliance and enforcement of UK immigration laws. |
Certificates of Sponsorship (CoS) | A digital document assigned by a licensed employer to a skilled worker, allowing them to apply for a visa to work in the UK. |
Sponsor Management System (SMS) | An online system used by licensed sponsors to manage their sponsorship duties, report worker changes and assign Certificates of Sponsorship. |
Compliance Visit | An inspection conducted by UKVI to check whether a sponsor is meeting its obligations. Non-compliance may lead to a downgrade, suspension or revocation of the licence. |
Licence Downgrade | When UKVI reduces a sponsor’s licence from A rating to B rating due to failure to meet sponsorship duties. |
Action Plan | A set of compliance measures that a B-rated sponsor must follow to regain an A rating, issued by UKVI following a downgrade. |
Licence Suspension | A temporary restriction placed on a sponsor licence while UKVI investigates potential breaches. Employers cannot issue new CoS during suspension. |
Licence Revocation | Permanent removal of a sponsor licence by UKVI, preventing an employer from hiring foreign workers. |
Right to Work Check | A legal requirement for UK employers to verify that all employees have valid permission to work in the UK. |
Civil Penalty | A fine imposed on employers who fail to conduct proper right to work checks, which can be up to £60,000 per illegal worker. |
Licence Renewal | Sponsor licences are now issued for 10 years with no renewal requirement, although UKVI can revoke a licence at any time for non-compliance. |
Register of Licensed Sponsors | A publicly available list of UK employers approved by UKVI to sponsor skilled foreign workers. |
Statutory Excuse | A legal defence for employers who have conducted correct right to work checks but later find that an employee does not have valid immigration status. |
Action Plan Fee | A charge of £1,579 payable to UKVI when a sponsor licence is downgraded to B rating. The fee covers the cost of issuing and managing the action plan. |
Appendix D | The section of UKVI sponsor guidance setting out mandatory record-keeping requirements for licensed sponsors, including retention periods and document types. |
Downgrade Limit | A sponsor licence can only be downgraded twice during its 10-year validity. A third downgrade results in licence revocation. |
Digital Audit | A compliance check where UKVI requests documents electronically with strict deadlines. Increasingly used to verify payroll, reporting and HR records without a site visit. |
Section G: Additional Resources and Links
Title | Description | URL |
---|---|---|
UK Government: Register of Licensed Sponsors | Official Home Office list of organisations licensed to sponsor overseas workers, showing licence rating and sponsorship categories. | https://www.gov.uk/government/publications/register-of-licensed-sponsors-workers |
UK Government: Sponsor Guidance for Employers | Comprehensive guidance for sponsors covering duties, compliance checks, downgrades, suspensions and revocations. | https://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators |
UK Government: Skilled Worker Visa | Visa guidance for overseas workers applying under the Skilled Worker route using a Certificate of Sponsorship. | https://www.gov.uk/skilled-worker-visa |
UK Government: Immigration Rules | The complete UK Immigration Rules, including requirements for sponsors and workers under different visa categories. | https://www.gov.uk/guidance/immigration-rules |
UK Government: Right to Work Checks | Home Office guidance for employers on how to check that employees have valid permission to work in the UK. | https://www.gov.uk/legal-right-work-uk |
DavidsonMorris: Sponsor Licence Downgraded | Guidance on sponsor licence downgrades, Home Office action plans and regaining an A rating. | https://www.davidsonmorris.com/sponsor-licence-downgraded/ |
DavidsonMorris: Sponsor Licence Revocation | Specialist advice on licence revocation, its consequences and steps employers should take if their licence is removed. | https://www.davidsonmorris.com/sponsor-licence-revocation/ |