Everything UK employers need to know about obtaining a sponsor licence, assigning Certificates of Sponsorship, and meeting your ongoing compliance duties.
From 8 April 2026, sponsors must meet salary thresholds in every individual pay period. Annual salary averaging is no longer acceptable. Review all sponsored workers' pay structures immediately.
To sponsor overseas workers on the Skilled Worker route, your organisation must hold a valid Skilled Worker sponsor licence issued by the Home Office. Without this, you cannot legally hire someone on a Skilled Worker visa.
To be eligible for a licence, your organisation must:
| Role | Responsibilities | Notes |
|---|---|---|
| Authorising Officer (AO) | Overall responsibility for the licence. Signs the licence application. | Must be a senior member of staff or a director. Cannot be the same person as Level 1 User. |
| Key Contact | Main point of contact with the Home Office | Can be the same person as the AO |
| Level 1 User | Day-to-day management of the Sponsor Management System (SMS) | Can assign CoS, update records, report changes. At least one must be a settled worker. |
| Level 2 User (optional) | Limited SMS access — typically line managers | Optional — can be overseas nationals |
Apply online via the Home Office's Sponsor Management System (SMS). You will need to provide supporting documents including evidence of your business activities, HR systems and key personnel. As of 2026, the application fee is £536 for small/charitable sponsors and £1,476 for medium/large sponsors. Licences are typically granted within 8 weeks (or 2 weeks with priority).
Once licensed, you assign a Certificate of Sponsorship (CoS) to each worker you wish to sponsor. A CoS is a digital record — it has a unique reference number but is not a physical certificate.
| Type | Used for | Validity |
|---|---|---|
| Defined CoS | Applicants applying from outside the UK, or switching from most UK visa routes | Must be used within 3 months of assignment |
| Undefined CoS | Applicants already in the UK on a Skilled Worker visa (extension or same-employer switch) | Assigned from your annual allocation |
Errors on a CoS can lead to visa refusals. Double-check all details — especially SOC code, salary and start date — before assigning.
Meeting salary requirements is one of your most critical compliance duties. From 8 April 2026, the rules became more stringent:
| Threshold | Requirement |
|---|---|
| Standard going rate | Must meet or exceed the going rate for the worker's SOC code |
| Standard minimum | £41,700/yr — must be met in every pay period from April 2026 |
| Discount route minimum | £33,400/yr — only if worker qualifies for a tradeable route |
| Absolute salary floor | £25,000/yr — no exceptions |
You must pay the ISC when assigning a CoS. It is charged per year per worker:
| Organisation type | ISC per year per worker |
|---|---|
| Medium / Large employers | £1,320 (increased December 2025) |
| Small employers & charities | £660 |
For a worker sponsored for 5 years, a large employer pays £6,600 in ISC alone.
Holding a sponsor licence comes with significant ongoing obligations. Failure to comply can result in your licence being suspended, downgraded or revoked.
The Home Office can conduct unannounced compliance visits at any time. You must be able to produce all required documentation on demand. Ensure your records are always up to date and accessible.
| Cost | Amount (2026) | Paid by |
|---|---|---|
| Sponsor licence application (medium/large) | £1,476 | Employer |
| Sponsor licence application (small) | £536 | Employer |
| Certificate of Sponsorship fee | £239 | Employer |
| Immigration Skills Charge (medium/large, per year) | £1,320 | Employer (cannot pass to worker) |
| Immigration Skills Charge (small/charitable, per year) | £660 | Employer |
| Visa application fee (worker, from outside UK, up to 3 years) | £719 | Employer or worker |
| Immigration Health Surcharge (per year) | £1,035 | Employer or worker |
Always verify current fees on GOV.UK. Note: employers cannot pass the ISC or CoS fee to workers.