A sponsor licence is one of the easiest things to win and one of the easiest to lose. Once you hold it, the Home Office expects you to police your own compliance — and in 2026 it is checking, hard. If the licence is revoked, your sponsored workers' visas are cut short and you can't hire from overseas for a cooling-off period. Here's exactly what's expected of you and how to stay on the right side of it.
- 3,100 sponsor licences were revoked in 2025 — the highest since records began in 2012 — with 1,500+ stripped in the final quarter alone. Enforcement is the highest it's ever been.
- Right-to-work checks are now online via eVisa share codes — physical BRPs ended on 31 December 2024.
- You must report key changes through the Sponsorship Management System (SMS) within 10 working days.
- Illegal-working civil penalties are up to £45,000 per worker for a first breach, rising to £60,000 for repeats.
Your core ongoing duties
Holding a licence makes you a partner in immigration control. Four duties sit at the centre of it:
- Record-keeping — keep accurate, retrievable records for every sponsored worker (right-to-work evidence, contact details, attendance, contracts).
- Right-to-work checks — completed correctly before employment starts, and repeated before time-limited permission expires.
- Reporting — notify the Home Office of specified changes via the SMS within the deadline.
- Monitoring — make sure sponsored workers only do the role and hours their visa permits, and that you still have a genuine vacancy.
Right to work in the eVisa era
This trips up even careful employers. Physical Biometric Residence Permits expired on 31 December 2024; checks are now done online using the worker's eVisa share code and date of birth, producing a digital check that gives you a statutory excuse against a civil penalty. Doing the check properly, before day one, and keeping the evidence is non-negotiable — a missed or botched check is the single most expensive mistake an employer can make.
The 10-working-day SMS rule
Most reportable events must be logged in the Sponsorship Management System within 10 working days. That includes a sponsored worker not turning up, prolonged unauthorised absence, resignation or early termination, a change of role or salary, and changes to the organisation itself (address, ownership, structure). Late or missed reports are exactly the kind of thing that turns a routine review into a downgrade.
The compliance visit — often unannounced
UKVI can — and does — turn up without notice. A compliance officer will typically inspect your records, interview HR and sometimes the sponsored workers, and test whether your stated processes actually happen day to day. The outcome can be a clean bill of health, an action plan, a downgrade to a B-rating (with a costly action plan to earn your A-rating back), suspension, or outright revocation. As with every regulator: the businesses that pass are the ones who can produce the right document in minutes, not hunt for it.
What getting it wrong actually costs
The numbers are stark. 3,100 licences were revoked in 2025, the highest on record, and over 1,500 in the final quarter alone. Separately, employing someone without the right to work carries a civil penalty of up to £45,000 per worker for a first breach and £60,000 for repeat breaches — before the reputational damage and the loss of your ability to sponsor. Prevention is a rounding error next to that.
A simple plan to stay compliant
Start by pressure-testing yourself: our free 2-minute sponsor licence self-check shows where your duties are exposed, on the spot. Then put the basics on rails — a named compliance lead, an SMS reporting calendar, eVisa right-to-work checks built into onboarding, and a tidy file per worker. Our own-forever document suites give you the policies and trackers, and a mock compliance audit rehearses you for the real visit.
Frequently asked questions
How long do I have to report a change to UKVI?
Most reportable events must be logged in the SMS within 10 working days (some worker-level changes have their own deadlines). Build a simple reporting calendar so nothing slips.
Do I still check a physical card for right to work?
No. BRPs ended on 31 December 2024. Use the online right-to-work service with the worker's eVisa share code and date of birth, and keep the digital confirmation.
Can UKVI really visit without warning?
Yes — unannounced visits are common. Treat "inspection-ready all year" as the standard: records current, processes real, evidence retrievable in minutes.
What happens if my licence is revoked?
Your sponsored workers' permission is normally curtailed and you face a cooling-off period before you can apply again. With 3,100 revocations in 2025, this is a live risk — not a theoretical one.