Sponsor Licence for UK organisations

Sponsor Licence Requirements

Application for a UK sponsorship licence requires certain documents you need to provide to succeed. In addition to the sponsorship licence application form, you’ll also need to submit a minimum of 4 supporting documents from the list below:

1. PAYE or Account Office reference letter from HMRC (PAYE reference number is mandatory)
2. SIGNED Annual Accounts (it’s mandatory if the business is over 18 months old)
3. Minimum 1-month business bank statement, the bank needs to be registered and regulated by the FCA and PRA.
4. Employer liability insurance certificate (minimum employee cover £5 million)
5. Copy of Lease, freehold or Tenancy agreement
6. Copy of regulatory approval, i.e. Health & Safety star rating for food businesses, ACCA, SRA, etc.
7. VAT Certificate (if registered)

If a UK firm wants to employ non-UK resident (including EU nationals entering the UK from 1st January 2021), the employer must have a valid sponsor licence from the UK Home Office. The process of employer sponsorship licence application can be complex, and WorkPermitCloud can assist with this.

There are two types of sponsor licences available: Tier 2 and Tier 5. The Tier 2 sponsor licence is for UK employers who want to sponsor non-UK nationals to work in skilled jobs in the UK. This includes jobs that require a specific skill set, professional qualifications, or relevant experience. The Tier 5 sponsor licence is for UK employers who want to sponsor non-UK nationals for temporary work in the UK. This includes jobs in creative and sporting fields, charity work, religious work, and government-authorised exchange programs.

To apply for a Tier 2 or Tier 5 sponsor licence, the employer must follow the sponsor licence guidance and meet certain eligibility criteria, such as having a physical presence in the UK, being a genuine business, and having appropriate HR systems in place. They must also provide the necessary supporting documentation.

How long does a UK Sponsor Licence Application take?

To apply for a sponsor licence, it usually takes 8 weeks to get a decision from Home Office. Processing time may be longer if your application is complex or you have not provided the required information. The Home Office may need to conduct an on-site visit to your business premises as part of their due diligence and this can add a few more weeks to the process.

If the skilled worker sponsor licence application is refused, there is a six-month cooling-off period before you can reapply. In some cases, you may be able to appeal the decision. You’ll need to address the reasons your application was denied in your reapplication. WorkPermitCloud can provide assistance in this matter.

How much does the UK Sponsor Licence Application Cost?

The cost of a sponsor licence application varies depending on the size of the organisation.

For small organisations, the Sponsor Licence application fee is £536, which needs to be paid to the Home Office

For Medium to large organisations, the Sponsor Licence application fee is £1,476, which also needs to be paid to the Home Office.

A small organisation is defined as 1-50 staff, less than 10.2 million annual turnovers, and total assets worth £5.1 million or less.

Additionally, an annual sponsor licence fee must be paid to maintain the licence, but that will only depend on the number of skilled workers the company employs.

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