What Is a UK Sponsor Licence?
A sponsor licence is a formal Home Office permission authorising a UK organisation to recruit and employ workers from outside the UK who require a visa. Without one, your business cannot legally issue Certificates of Sponsorship — the document that enables an overseas worker to apply for a UK work visa. Since the end of free movement in December 2020, EU, EEA, and Swiss nationals arriving after 1 January 2021 also require a work visa in most circumstances unless they hold settled or pre-settled status under the EU Settlement Scheme.
What Types of Sponsor Licence Are Available?
- Worker Licence — Covers long-term routes including Skilled Worker, Health and Care Worker, Senior or Specialist Worker, and other worker routes. The most commonly sought licence type.
- Temporary Worker Licence — Covers shorter-term categories including Creative Worker, International Sportsperson, Seasonal Worker, and Government Authorised Exchange.
How Much Does a Sponsor Licence Cost?
Worker licence fees are £574 for small or charitable organisations and £1,579 for medium or large organisations. A Temporary Worker licence costs £574 regardless of size. The Home Office retains the fee on refusal. Additional costs include the Certificate of Sponsorship fee (currently £525 per CoS) and the Immigration Skills Charge — £1,320 per year for large sponsors and £480 per year for small or charitable sponsors — payable for each sponsored worker under most worker routes.
How Long Does a Sponsor Licence Last?
Since April 2024, sponsor licences are granted indefinitely — there is no longer a fixed renewal period. However, the Home Office can suspend, downgrade, or revoke a licence at any time if non-compliance is found. This makes ongoing compliance as important as the initial application.
Most Common Reasons for Refusal
Only around 56% of applications were approved in the year to June 2025. Common reasons for refusal include failure to demonstrate genuine trading, inadequate HR systems, Key Personnel failing suitability checks, roles that appear artificial or inflated, insufficient evidence of a genuine need to recruit overseas workers, and inaccurate or incomplete documentation.
What Happens If My Application Is Refused?
The application fee is not refunded. A six-month cooling-off period applies before reapplying, during which no overseas workers can be sponsored. Professional legal advice before submission is strongly advisable to avoid this outcome.