UK Sponsor Licence Application and C.O.S Assignment Guide
Hiring a skilled worker from within or outside the UK requires your business to complete a UK Sponsor Licence Application. This detailed guide walks you through the full process—from applying for the licence to assigning a Certificate of Sponsorship (CoS). You’ll also understand key employer responsibilities and associated costs. Whether your candidate is already in the UK or applying from abroad, this step-by-step approach helps you manage each stage confidently and lawfully.
Who Needs a Sponsor Licence?
Your business must go through the UK Sponsor Licence Application process if you intend to hire:
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Skilled workers from outside the UK
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International students or graduates already inside the UK switching to a Skilled Worker visa
If your prospective hire does not already hold work permission, applying for a sponsor licence is legally required. Failing to do so can lead to compliance breaches and penalties under immigration law.
Steps to Complete a UK Sponsor Licence Application
1. Check Your Eligibility
Before starting your UK Sponsor Licence Application, confirm that your business:
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Is legally established and actively operating in the UK
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Has appropriate HR systems to monitor sponsored workers
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Has no history of breaching immigration rules
Skipping this check can result in automatic rejection. It’s crucial to assess your readiness before submitting the application.
2. Choose the Right Licence Type
As part of your UK Sponsor Licence Application, choose the appropriate licence category based on your business needs:
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Worker Licence – For long-term employment like Skilled Workers or Specialist roles
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Temporary Worker Licence – For short-term or seasonal roles
Selecting the correct licence type ensures your application is valid, reducing the risk of delays or additional costs.
3. Verify the Job Role and Salary
Another vital step in the UK Sponsor Licence Application process involves verifying that your job role complies with Home Office criteria:
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The job is listed on the eligible occupations list
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The salary meets or exceeds the minimum threshold
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The job corresponds to the correct SOC (Standard Occupational Classification) code
Neglecting this step may result in your licence being refused or delayed.
4. Submit the Application and Upload Documents
To complete your UK Sponsor Licence Application, you must:
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Fill in the online application form
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Upload required documents such as:
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Companies House registration
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Employer liability insurance
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PAYE and VAT records
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Ensure all documents are consistent and complete to avoid unnecessary processing delays.
5. Pay the Application Fee
The application fee depends on your company’s size:
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Small/Charitable Sponsor: £536
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Medium/Large Sponsor: £1,476
Once paid, your UK Sponsor Licence Application enters the assessment phase. UKVI might request additional documentation, so be prepared to respond quickly.
Salary Thresholds and New Entrant Rules
Employers submitting a UK Sponsor Licence Application must understand salary thresholds, especially when hiring under the Skilled Worker visa route.
General vs Occupation-Specific Salaries
As of April 2024:
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The general minimum salary is £38,700 per year
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Some roles have lower occupation-specific going rates (e.g., Book-keepers: £30,960)
Applicants must be paid the higher of the two rates.
New Entrant Exceptions
New entrants can be paid less if they meet criteria such as:
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Being under 26
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Switching from a Student or Graduate visa
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Entering a graduate training programme
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Working toward a qualification
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Holding a role on the Immigration Salary List (ISL)
The salary discount applies for up to four years across visa types.
Example:
If you’re hiring a Book-keeper (going rate: £30,960), 70% equals £21,672. For new entrants, £30,960 is acceptable.
When completing your UK Sponsor Licence Application, indicate new entrant status clearly in the CoS and ensure the role qualifies.
After Licence Approval – Accessing the SMS System
Upon approval of your UK Sponsor Licence Application, your business gains access to the Sponsor Management System (SMS). You can:
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Assign Certificates of Sponsorship
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Manage sponsored worker details
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Report changes and compliance updates
Using SMS efficiently is essential for maintaining your sponsor status.
Applying for and Assigning a Certificate of Sponsorship (CoS)
Types of CoS:
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Defined CoS: For applicants applying from outside the UK
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Undefined CoS: For workers already inside the UK
While Defined CoS are requested individually, Undefined CoS are allocated annually. You can request more if needed.
Assigning a CoS
After your UK Sponsor Licence Application is approved:
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Log into SMS
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Input job details (title, SOC code, salary, hours)
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Pay the CoS fee – £239 per worker
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Pay the Immigration Skills Charge:
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£364/year (small sponsors)
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£1,000/year (large sponsors)
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Then assign the CoS and provide the reference number to your employee, enabling their visa application.
Skilled Worker Visa Application (Employee Stage)
The sponsored worker uses their CoS reference number to apply for the Skilled Worker visa.
Visa Fees (April 2024):
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Up to 3 years: £719 (outside UK) / £827 (inside UK)
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More than 3 years: £1,420 (outside UK) / £1,500 (inside UK)
Immigration Health Surcharge (IHS):
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£1,035 per year
This is a mandatory cost payable upfront during the visa application.
Optional Services:
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Priority (5-day): £500
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Super Priority (1-day): £1,000
These services speed up decisions and are optional based on your timeline and budget.
Conclusion
Completing a UK Sponsor Licence Application is a detailed process involving multiple stages, documents, and legal obligations. However, when you follow the right steps, your business can successfully sponsor skilled workers and access global talent legally.
Whether your new hire is inside the UK or applying from overseas, this guide equips you with all the knowledge you need to handle the application process confidently and efficiently. In the end, your business gains access to skilled professionals while remaining fully compliant with immigration law.
Tags:
UK Sponsor Licence Application, Skilled Worker Visa, Certificate of Sponsorship, Sponsor Management System, CoS Assignment, New Entrant Salary, Immigration Sponsor, UKVI guidance
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