Navigating the Latest Sponsor Guidance Changes

3rd January 2025

Understanding the Key Changes to Sponsor Guidance

As of 31st December 2024, the Home Office has introduced changes to the guidance for sponsors. These updates aim to ensure compliance and streamline the sponsorship process. In this blog, we will explore the key changes and what they mean for you as a sponsor.

 
Mandatory Sponsor Fees and Recouping of Fees

One of the most notable updates is the financial responsibilities of sponsors. Home Office guidance now explicitly states that sponsors are required to cover the following fees:

  1. Sponsor Licence Application Fee and any associated administrative costs
  2. Certificate of Sponsorship (CoS) Fee
  3. Immigration Skills Charge

 

Any attempts to recoup these fees from sponsored employees after 31st December 2024, in any way, will normally lead to revocation of the sponsor licence.

 
Personal Sponsorship: What’s No Longer Allowed

The Home Office has tightened the criteria for sponsoring workers to prevent the misuse of sponsorship licences. 

Sponsors must operate as a UK business or service provider. You will not be granted a sponsor licence if you are looking to sponsor workers in a personal capacity as an individual or household. 

Businesses cannot sponsor workers for the personal benefit of an employee or their close relatives, especially if the job is unrelated to the business operations.

Consequences of Non-Compliance: Sponsors who have previously issued Certificates of Sponsorship (CoS) under these capacities cannot issue further CoS for similar reasons. Doing so may lead to the revocation of the sponsor licence.

Updated Rules for Key Personnel

There have been changes to the guidance regarding key personnel including:

Director Eligibility: Individuals who are prohibited from being company directors cannot hold any Key Personnel roles on a sponsor licence unless explicitly permitted by a court.

Level 1 User Requirement: There must always be at least one Level 1 user who is:

  • an employee, director or partner within the business
  • a settled worker (i.e., someone with indefinite leave to remain or settled status)
Employment Agencies: New Rules to Avoid Licence Revocation

The latest guidance now confirms that sponsors will have their licences revoked if found acting as an employment agency with the intention of supplying sponsored workers to third parties.

Sponsors must review current practices, update internal policies and ensure compliance is met to retain their licences and support sponsored workers effectively.

Sign up to stay up to date, with news and advice