Since the announcement of the Skilled Worker route, we have been assisting clients in obtaining a Skilled Worker sponsor license (formerly Tier 2 General).
At Lincoln Lewis we are committed to not only assist you in your application for a sponsor license but also achieve longstanding compliance with all Home Office requirements.
We provide support that offers peace of mind, assurance, and a better outcome. Our service extends to all aspects of sponsorship.
Sponsor Licence (formerly Tier 2 sponsor license) guidance
The Home Office published guidance for sponsor license applications. This reflects changes made to UK immigration rules in December 2020, particularly, the replacement for the Tier 2 (General) visa route for sponsored employment with the Skilled Worker visa route. From 1 January 2021, companies must have a valid sponsor license in order to employ all skilled workers who do not have the right to work in the UK, including EEA and Swiss nationals and their family members, if they have not been granted settled or pre-settled status under the EU Settlement Scheme.
What is a sponsor license?
A sponsor (formerly known as Tier 2 sponsor license) allows UK-based companies to employ skilled workers who are based overseas or within the UK (applicants can “switch” into the Skilled Worker visa from most other visa types, e.g., Tier 4 Student and Tier 2 visas).
Once the license is approved, it will be valid for a period of four years with the option for renewal.
What are the eligibility requirements for a sponsor license?
To be eligible to apply for a sponsor license, your organisation must have a UK presence and be operating or trading lawfully in the UK. If you have multiple UK branches you may apply for one license to cover all your linked UK entities.
If you are required to be registered with or inspected or monitored by a statutory body to operate lawfully, you will need to submit proof that you are registered with the appropriate body.
The Home Office must be satisfied that you are able to offer genuine employment in a skilled occupation and that you will pay the correct rate of salary, as specified by the Home Office.
How much does a sponsor license application cost?
The fee for sponsor license depends on the size of type of organisation.
Organisations classified as “small” sponsors are required to pay a sponsor fee of £536.00
Organisations classified as “medium” and “large” are required to pay a sponsor license fee of £1476.00.
An organisation would normally qualify as a small sponsor if two of the following apply:
- You have 50 employees or fewer
- Your annual turnover is £10.2 million or less
- Your total assets are worth £5.1 million or less.
How can my organisation apply for a sponsor licence?
To apply for a sponsor, license a company is required to submit an application form online along with a minimum of four specified supporting documents as evidence of its trading presence in the UK, in addition to a covering letter to provide background information about the company.
The Home Office may require additional documents such as evidence of the company’s HR processed to assess whether the compliance requirements and sponsorship duties will be met. During an assessment of the license application, the Home Office may also conduct a compliance visit at the company premises.
What documents will I need to apply for a sponsor licence?
You will usually need to submit a minimum of four specified mandatory documents with the Skilled Worker (formerly Tier 2 General) license application. The required document list is extensive and will depend on whether you are representing a public body, start-up, franchise, or SME. Documents may include:
- Latest business bank statement
- Employers’ liability insurance of at least £5 million from an authorised insurer
- Certificate of VAT registration
- Evidence of registration as an employer with HMRC – i.e., PAYE and Accounts Office Reference Number.
- Latest audited or unaudited accounts (audited accounts are mandatory if your company is legally required to file audited accounts).
- Proof of ownership or rent agreement or lease of business premises.
- If you are required to be registered with and/or inspected/monitored by a regulatory body to operate lawfully in the UK, evidence of your registration.
What are certificates of sponsorship?
A Certificate of sponsorship (CoS) is an electronic document generated on the Sponsor Management System (SMS) after a license is granted.
To sponsor a migrant worker, the company must first request a Certificate of sponsorship from the Home Office through the SMS. Once this is granted, the company will need to assign it to the migrant worker they intend to sponsor to generate a unique reference number for the candidate to submit during their visa application.
Under new sponsor license rules, the Home Office has rebranded its previous two types of CoS depending on the immigration status of the migrant worker:
Defined CoS
These certificates required for those who are based outside the UK and making an entry clearance application as a Skilled Worker.
Once you have identified a person you want to sponsor, you can apply for this on the SMS, and the Home Office usually aims to decide within one working day unless additional information is required. This is judged on a case-by-case basis.
In the past, sponsors were required to submit their request for a restricted CoS (now defined CoS) by the 5th of each month to receive a decision by the 11th of the same month.
Please note that those who are in the UK as visitors will not be able to apply for a Skilled Worker visa within the UK and will need to return to their country of residence for submission. Therefore, they will require a defined CoS.
Undefined CoS
The annual allocation of undefined Cos runs from 6 April to 5 April each year. A sponsor can request multiple undefined CoS before the deadline on 5 April if they foresee a need to extend the leave of an existing employee or have identified someone, they wish to sponsor who requires an undefined CoS (for example, someone “switching” visa category). If a sponsor can justify the need for the request, then the CoS will be granted from 6 April.
If you missed the deadline for renewal or require additional undefined CoS during the year, you may request an increase of allocation on the SMS. Again, you will be required to prove you genuinely need the CoS requested. The processing time for an increase of allocation is 18 weeks, however, priority service is available at an additional cost of £200.00
What can I do if my application for a Skilled Worker sponsor license is refused?
A six-month cooling off period will be triggered from the date of refusal, meaning that another license application cannot be submitted until the end of that period. A cooling off period won’t apply, if there was an error in the Home Office’s assessment of the application.
How can I get a sponsor license?
To obtain a sponsor license, UK employers need to follow the below steps: –
- Choose the type of license you need.
- Check your business is eligible, i.e., can you provide the specified documents to show your company is genuine and actively trading?
- Decide who will manage sponsorship within your business. The person is also known as the Authorising Officer. Upon grant of the license, the Authorising Officer will be responsible for overseeing the SMS and ensuring the sponsorship duties are complied with. You will also need to appoint a level 1 user. This is the person with access to the SMS (sponsor management system) and does not necessarily need to be the Authorising Officer.
- Apply online and pay the fee.
How long will my sponsor license be valid?
It will be valid for four years with the option for renewal at the end of the fourth year.
What is the processing time for a sponsor license application?
The standard processing time for applications is 8 weeks. During the processing time, the Home Office may conduct a compliance visit at your office to ensure you are complying with your sponsorship duties.