Sponsor Licence Renewal: 2025 Rules

Section A: Sponsor Licence Renewal Rules 2025

The UK’s approach to sponsor licence renewal underwent a major change on 6 April 2024. Prior to that date, all sponsor licences were issued with a four-year validity period, and sponsors were required to apply for a renewal before the licence expired in order to continue sponsoring overseas workers. The sponsor also had to pay a renewal fee and undergo checks by the Home Office to ensure ongoing compliance with sponsor duties.

While sponsor licence renewal is no longer required, sponsors remain subject to routine and unannounced Home Office compliance audits and visits, and enforcement actions. Data indicates a rise in suspensions and revocations since April 2024 as UKVI shifts capacity from renewal checks towards compliance enforcement.

1. Sponsor Licence Renewal Automatically Extending

In April 2024, the Home Office removed the requirement for sponsors to renew their licence every four years. Sponsor licences that were due to expire on or after 6 April 2024 were automatically extended for ten years from the original grant date. No action was required by the sponsor, and no renewal fee was payable for the extension.

The announcement, published on the SMS in January 2024, stated:

“FOR THE ATTENTION OF ALL SPONSORS WITH A LICENCE EXPIRY DATE ON OR AFTER 6TH APRIL 2024: From 6th April 2024, we will remove the requirement to renew your sponsor licence. If your licence is due to expire on or after this date you will no longer need to apply to renew your licence or pay a renewal fee. To prepare for this, we have extended licence expiry dates on all licences due to expire on or after 6th April 2024 by 10 years. You do not need to take any action. If you have already received a notification to renew your licence, please ignore it”.

The SMS menu option to renew a sponsor licence following the rules change on 6 April 2024 was also removed.

The change applied to existing sponsors with valid licences as well as to new sponsor licences granted on or after 6 April 2024.

Sponsor licences have since been issued with a ten-year validity period.

It is important to note that this is not an indefinite licence; the Home Office has not yet published guidance on what will happen at the end of the ten-year period, but sponsors could expect to undertake some form of renewal or reassessment at that point.

The changes in April 2024 focused on the renewal process only; the legal responsibilities of sponsors remain unchanged.

2. Exceptions to the Ten-Year Validity

The removal of routine sponsor licence renewal for most sponsors has led to some confusion about who still needs to take action.

Whether a sponsor must renew their licence depends on the type of licence they hold.

For Temporary Worker and Worker sponsor licences that were due to expire on or after 6 April 2024, the Home Office has automatically extended their validity by ten years. In these cases, no renewal application is required, and no fee is payable.

However, sponsors operating under the UK Expansion Worker and Scale‑up routes are subject to different rules and are only valid for a maximum of 4 years. Sponsor licences under these routes cannot be renewed or re‑granted.

Sponsors in these categories should refer to the specific guidance applicable to their route to understand their obligations fully.

3. How to Check Your Sponsor Licence Expiry Date

To check the expiry date of your sponsor licence, you should log into the Sponsorship Management System (SMS). Navigate to the ‘Licence Summary’ section, where you’ll find the current expiry date of your licence. It’s advisable to regularly review this information to stay informed about your licence status.

Section B: Can Sponsor Licences Be Brought to an End?

It is important to understand that a sponsor licence is not permanent or indefinite. The Home Office retains the right to amend, suspend or revoke a licence at any time if a sponsor fails to meet ongoing compliance duties. While the licence may be valid for ten years on paper, sponsors are still expected to maintain high standards of record-keeping, reporting and cooperation throughout this period.

The Home Office may revoke a sponsor licence if the sponsoring organisation fails to meet its obligations. Common reasons for revocation include:

• Failing to comply with sponsor duties, such as not reporting significant changes or not keeping proper records.
• Employing workers in roles that do not meet the skill or salary requirements.
• Providing false information or documentation.

When a licence is revoked, all Certificates of Sponsorship (CoS) issued by the sponsor become invalid, and the visas of sponsored workers may be curtailed. Affected workers typically have 60 days to find a new sponsor or leave the UK, unless their visa expires sooner.

A sponsor may also choose to surrender their licence voluntarily, perhaps due to changes in business operations or a decision to cease sponsoring overseas workers. To do this, the sponsor must inform the Home Office through the Sponsorship Management System (SMS). Once surrendered, the licence is cancelled, and any existing CoS are invalidated. Sponsored workers are then subject to the same conditions as in revocation, needing to find a new sponsor or leave the UK within the specified timeframe.

When a sponsor licence ends, whether through revocation or surrender, sponsored workers are directly affected. Their CoS become invalid, and their visas may be curtailed. They typically have 60 days to find a new sponsor and apply for a new visa, or switch to a different visa category, if eligible, or leave the UK.

Section C: Sponsor Licence Compliance Duties

While the removal of routine licence renewals has reduced administrative burdens and costs, sponsors remain subject to strict compliance requirements. The Home Office may still conduct checks and request records.

Failure to meet these obligations may result in serious enforcement action, including suspension or revocation of the licence. Sponsors must remain fully aware of their obligations and ensure that compliance is embedded in day-to-day processes.

1. Record-Keeping Requirements

Sponsors are required to maintain up-to-date and accurate records for every sponsored worker. These records must be available for inspection at any time. Examples include copies of the worker’s passport and visa, contact details, proof of right to work, and evidence of salary payments and job duties. Sponsors must also retain records of how each vacancy was filled, including any recruitment processes, if required.

The Home Office may request to review records during an audit or investigation. Failure to produce them on request can lead to enforcement action, even if no other breaches are alleged.

2. Reporting Duties

Certain changes must be reported to the Home Office via the Sponsorship Management System (SMS) within strict deadlines. This includes changes in a sponsored worker’s circumstances, such as:

• A change of job title or core duties
• A change in work location
• A reduction in salary
• Absence from work without permission for more than 10 consecutive working days
• Termination of employment before the end of the sponsored role

In addition, sponsors must report any changes in the organisation, such as a change in ownership, address, structure, or named personnel on the sponsor licence (e.g. Authorising Officer, Key Contact, or Level 1 User). Failing to report such changes in time can result in sanctions.

3. Right to Work Checks

Sponsors must carry out right to work checks in line with current government guidance before employing any worker, including sponsored staff. This includes checking and recording valid documentation and repeating checks for those with time-limited immigration status. Neglecting this duty can lead to civil penalties and affect the sponsor’s licence status.

4. Co-operation with Home Office Compliance Visits

The Home Office conducts compliance visits, sometimes without prior notice, to ensure sponsors are fulfilling their duties. These visits may involve interviews with staff and workers, document checks, and a review of systems and processes. Sponsors must fully co-operate and provide accurate information during any inspection.

Organisations should ensure that relevant staff understand what to expect during a compliance visit and are trained to respond appropriately.

5. Preventing Abuse of the Sponsorship System

Sponsors are required to ensure that sponsored roles are genuine and meet the salary and skill thresholds for the visa route. The Home Office may investigate if it suspects a role has been created solely to facilitate a visa or if the duties differ significantly from those described on the Certificate of Sponsorship. Roles that do not meet the required standards may result in curtailment of the worker’s visa and action against the sponsor.

Sponsors must also avoid assigning Certificates of Sponsorship where there is no genuine need or where the role has not been properly advertised (if applicable). Misuse of the CoS system is a serious breach that often results in licence revocation.

6. Maintaining Up-to-Date Contact and Licence Information

All sponsor licence details have to be kept up to date, including the names and contact information of the Authorising Officer, Key Contact, and Level 1 Users. Failure to update these records can result in missed communications or technical issues in managing the licence, which in turn can lead to non-compliance.

Section D: Common Misunderstandings About the New Rules

The introduction of the ten-year sponsor licence validity period from 6 April 2024 has streamlined the administrative process for many UK sponsors. However, several misconceptions have arisen regarding the implications of these changes. Clarifying these misunderstandings is essential to ensure sponsors remain compliant with their obligations.

Misconception 1: Licence Renewal Is No Longer Necessary

While the routine requirement to renew sponsor licences every four years has been removed, sponsors must understand that this does not equate to indefinite validity. The ten-year validity period means that, in most cases, a sponsor licence will remain active for a decade unless it is surrendered or revoked due to non-compliance. Sponsors should be aware that the Home Office retains the authority to revoke licences if compliance obligations are not met.

Misconception 2: All Sponsor Licences Are Valid for Ten Years

The ten-year validity period applies to most sponsor licences, however, there are exceptions. Sponsor licences under the UK Expansion Worker and Scale-up routes have different validity periods and renewal requirements. These licences are time‑limited to 4 years and cannot be renewed or re‑applied for on those routes. Sponsors operating under these routes should refer to the specific guidance applicable to their category to understand their obligations fully.

Misconception 3: No Further Action Is Required During the Ten-Year Period

Despite the extended validity period, sponsors must continue to fulfil all compliance obligations. This includes maintaining accurate records, reporting relevant changes through the Sponsorship Management System (SMS), and cooperating with any Home Office audits or inspections. Failure to meet these obligations can result in enforcement action, including suspension or revocation of the sponsor licence.

Misconception 4: Licence Expiry Dates in SMS Are Outdated

Some sponsors may notice that their SMS still displays the original expiry dates. If this is the case, sponsors should rely on official correspondence confirming the ten‑year extension or contact the Home Office for clarification.

Misconception 5: Automatic Extension Applies to All Licences

The automatic ten-year extension applies to licences that were due to expire on or after 6 April 2024. Licences that expired before this date were subject to the previous four-year renewal cycle. Sponsors with licences that expired before 6 April 2024 would have needed to apply for renewal under the old system.

Understanding these nuances is crucial for sponsors to maintain compliance and avoid unintended breaches of their obligations. Regularly reviewing official guidance and ensuring that all sponsor duties are fulfilled will help organisations remain in good standing with the Home Office.

Section E: Need Assistance?

There has been no confirmation yet about what the process will involve at the end of the ten-year period. The government has not ruled out the possibility of a reassessment, reapplication or another form of administrative review at that stage. Sponsors should therefore remain alert to policy updates and be prepared for future guidance once the earliest ten-year licences approach expiry. In the meantime, the focus remains on compliance, not renewal paperwork.

DavidsonMorris’ team of specialist UK immigration lawyers provide clients with a complete employer sponsorship licence application and management service. We understand the importance of the licence to business operations and the commercial imperative to avoid issues with the Home Office.

For specialist guidance, contact us.

Section F: Sponsor Licence Renewal FAQs

Has the sponsor licence renewal process changed?

As of 6 April 2024, most sponsor licences are now valid for 10 years instead of four. Licences due to expire on or after this date have been automatically extended without the need for a renewal application or fee.

What happens at the end of the 10-year period?

The Home Office has not yet published guidance on the renewal process after the 10-year period. Sponsors should stay alert to future updates and ensure they remain compliant in the meantime.

Does the 10-year rule apply to all types of sponsor licences?

Some routes, such as the Scale-up and UK Expansion Worker routes, have different validity periods and renewal processes. Check the specific guidance for your licence type.

Can the Home Office still revoke my licence during the 10-year period?

The 10-year validity does not remove the Home Office’s power to suspend or revoke a licence if a sponsor breaches their duties or fails to comply with immigration rules.

Why does the expiry date in my SMS account still show the old date?

In some cases, expiry dates may not have been updated automatically in the SMS. If you are unsure whether your licence was extended, contact the Home Office for confirmation or check for recent correspondence confirming the extension.

Is there anything I need to do to keep my sponsor licence active?

You must continue to fulfil all sponsor duties, including record-keeping, reporting changes, and complying with Home Office inspections. A failure to comply may result in enforcement action, regardless of the renewal rules.

Section G: Glossary

Section H: Additional Resources