Everything Need to Know About UK Sponsor Licence Renewal
Table of contents
– Sponsor Licence Renewal – Overview
– How much is the Sponsor Licence Renewal Fee?
– What is the process of Sponsor Licence Renewal?
– When to apply to renew the Sponsor Licence?
– How can The SmartMove2UK be of help for your UK Sponsor Licence Renewal?
Sponsor Licence Renewal – Overview
- Sponsor Licences are awarded for a 4-year period.
- Sponsors must apply for a Sponsor Licence renewal every four years to be eligible to hire non-UK resident professionals.
- UK-based employers who do not have a valid Sponsor Licence will be unable to hire new skilled workers from either EU or non-EEA countries or extend work permits for current sponsored employees, under the UK immigration system.
- The organisation must submit an application through the Sponsorship Management System and pay the applicable Sponsor Licence renewal fee to renew the Sponsor Licence.
How much is the Sponsor Licence Renewal Fee?
Sponsor License renewal fees vary depending on the size of the company, and discounted rates apply to charities and small organisations. It is important to pay an accurate fee. Otherwise, the renewal application will be rejected.
In The Companies Act 2006, to qualify as a small business (SME), the organization must meet at least two of the following criteria:
- Annual sales should not exceed £10.2 million.
- Total assets should not exceed £5.1 million.
- The average number of employees should not exceed 50.
If these conditions do not apply, then the organization will have to pay a medium or large Sponsor Licence Fee.
| Type of Licence | Fees in British Pounds (prices updated as of June 2022) |
|---|---|
| Worker Sponsor Licence (large sponsors) | £1,476 |
| Worker Sponsor Licence (small sponsors) | £536 |
| Student Sponsor Licence | £536 |
| Temporary Worker Sponsor Licence | £536 |
| Worker and Temporary Worker Sponsor Licence (large sponsor) | £1,476 |
| Worker and Student Sponsor Licence (large sponsor) | £1,476 |
| Worker, Temporary Worker and Student Sponsor Licence (large sponsor) | £1,476 |
| Temporary Worker and Student Sponsor Licence | £536 |
| Worker Sponsor Licence (large sponsor), where sponsor currently holds a Temporary Worker and/or Student Sponsor Licence | £940 |
What is the process of Sponsor Licence Renewal?
The Home Office will execute the application in two stages: validation checks and the review stage. When the renewal has been submitted through SMS and the appropriate money has been paid.
The caseworker will check the status of the existing Sponsor Licence, such as whether it is A-rated or subject to an action plan, and ensure that there are no difficulties with the renewal application that would result in a denial, such as failure to provide supplementary documentation on time.
The review step is concerned with the checks that will be done to verify continuous eligibility for the licence, including checks against nominated key persons and the organisation itself, to ensure that it continues to operate legally in the UK and is appropriate to be a licenced sponsor.
Generally, this includes checking Companies House records to confirm business continuity in the UK and checking the organization’s SMS containing information about the organisation, its sponsor employees, and the sponsor certificate issued.
If the Home Office needs more detailed information, it may request additional information or documentation from the organisation. Companies usually respond within 5 days. In some cases, sponsors may only be eligible for “Streamlined Licence Renewal”. This applies if the sponsor has renewed the license twice in the past and the renewal is allowed without compliance or issues.
Due to the streamlined process, the following will not be checked as part of the renewal:
- Company & insolvency checks,
- Certificate of sponsorship allocations,
- Licence structure,
- Site inspection history,
- Outstanding change requests,
- Risk profiles,
- Accreditation and registration details, unless the sponsor is operating in the Education or Human Health and Social Work Activities sectors,
- ‘Other trading checks’,
- Compliance visit referral,
- Record a review outcome in case actions in Metastorm,or
- Issue a decision letter.
When to apply to renew the Sponsor Licence?
- The Sponsor Licence renewal application should always be made before the present licence expires.
- Sponsors can apply to renew their licence 3 months before their existing licence is due to expire.
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