UK Sponsor Licence Renewal in 2026 - Rules, Exception and Compliance duties 

A sponsor licence allows a UK-based employer to employ migrant workers. Only once an employer applies for and obtains a sponsor licence can they employ/sponsor an overseas worker to work for them. After having a sponsoring licence, the sponsor must continue to meet the sponsorship duties in order to retain their licence and, therefore, their ability to retain existing workers and employ new foreign workers. 

Prior to 6 April 2024, a sponsor licence used to be valid for 4 years, and the sponsors were required to renew their licence every 4 years. However, this requirement to renew a sponsor licence every 4 years was removed on 6 April 2024, and sponsor licences that were due to expire on or after 6 April 2024 have been automatically extended by 10 years. Sponsors were not required to take any action or pay any renewal fee for the extension.

In most cases, a sponsor licence will remain valid until the licence holder either surrenders it or UKVI revokes it due to non-compliance, except if one is licensed on the UK Scale-up or UK Expansion Worker routes, for which one can only be licensed for a maximum of 4 years. Those licensed on the UK Scale-up or UK Expansion Worker routes will not be able to apply for another licence to sponsor these types of workers.

Sponsor Licence Renewal Rules 2026

The UK changed its approach for renewal of the sponsor licence on 6 April 2024. Before this date, all sponsor licences used to be granted with a 4-year validity period, and sponsors needed to renew their licence before the expiry of their licence to be able to continue sponsoring migrant workers. For the renewal of their sponsor licence, they were also required to pay a renewal fee and undergo the Home Office’s check to ensure their ongoing compliance with their sponsorship duties.

While the sponsor licence renewal requirement is no longer in place, sponsors remain subject to announced or unannounced compliance audits and visits by the Home Office officials and their enforcement actions.

The changes that took place in April 2024 focused on the licence renewal process only; the legal responsibilities of sponsors remain unchanged.

Exceptions to the 10 -Year Validity 

After the need to sponsor licence renewal has been removed, most sponsors have been confused about who still needs to take action.

Whether a sponsor must renew their sponsor licence depends on the type of licence they hold.

The validity of Worker and Temporary Worker sponsor licences of those that were due to expire on or after 6 April 2024 has automatically been extended by ten years. Such sponsors do not need to make a renewal application and pay any fee.

However, UK Scale-up Worker and Expansion Worker sponsor licences are subject to different rules. These 2 licences are only valid for a maximum of 4 years and cannot be renewed or re-granted.

Rules for Worker and Temporary Worker sponsor, UK Scale-up Worker and Expansion Worker licences are as follows. 

Sponsor licences on Skilled Worker, Health and Care Worker, and other Worker and Temporary Worker routes (such as Senior or Specialist Worker, Creative Worker, Seasonal Worker) are valid for 10 years with no renewal required before expiry.

These licences that were due to expire on or after 6 April 2024 were automatically extended.

On the other hand, sponsor licences on UK Scale-up Worker and Expansion Worker routes are only valid for a maximum of 4 years and cannot be renewed after expiry.

Checking Sponsor Licence Expiry Date

If a sponsor wants to check the expiry date of their sponsor licence, they should log into the SMS (Sponsorship Management System) and navigate to the ‘Licence Summary’ section, where they will find the current expiry date of their licence. The sponsor should regularly review this information to stay informed about their sponsor licence status.

Is the downgrade, suspension, or revocation of a Sponsor Licence still possible?

Sponsors need to understand that a Home Office-approved sponsor licence is not forever. The Home Office retains the right to downgrade, suspend, or revoke a licence at any time if a sponsor fails to fulfil their ongoing sponsorship compliance duties. While one’s licence may be valid for 10 years on paper, they are still expected to comply with record-keeping, reporting, and cooperation duties throughout this period.

The Home Office may also revoke a sponsor licence if it finds that the sponsoring organisation has failed to meet its obligations. Common reasons for a licence revocation include:

• Failure to comply with sponsorship duties, for example, not keeping proper records or reporting significant changes.

• Employing workers in occupations that do not meet the skill level or minimum salary threshold.

• Providing false documents or information.

If the Home Office revokes one’s sponsor licence, the organisation cannot appeal against the revocation decision, and they will not be allowed to apply for a sponsor licence again until 12 months or more have passed since the date the Home Office notified the sponsor of the revocation (or 24 months if the sponsor has had their licence revoked more than once).

The sponsor whose licence is revoked loses the legal right to sponsor migrant workers.

The sponsored workers in the UK, when their sponsor gets their licence revoked

• will have their CoS (Certificate of Sponsorship) cancelled

• will have their visa limited to 60 days (or however long they have left on the visa if it’s less than 60 days)

The worker will have to leave their job and leave the UK unless they apply for a new visa application within that time.

A sponsor also has the option to surrender their licence voluntarily, maybe due to changes in their business operations or if they have decided to stop sponsoring overseas workers. To do this, the sponsor must inform the Home Office through the SMS. Once a sponsor has surrendered their licence, their licence is cancelled, and any existing CoS (Certificate of Sponsorship) becomes invalid. Sponsored workers in such a scenario need to find a new sponsor or leave the UK within the specified timeframe. 

Sponsor Licence Compliance Duties

Some of the compliance duties a sponsor must comply with include the following, which means a sponsor must:

• Check that their overseas workers have the skills at the required level, qualifications, or professional accreditations to do the jobs they are being sponsored for, and keep copies of documents showing this

• Only assign CoS (Certificates of Sponsorship) to workers when the job is suitable for sponsorship 

• Inform UKVI if their sponsored workers are not complying with their visa conditions

• Notify UKVI of a change in work location 

• Comply with UK employment law for jobs being offered by them 

• Must pay the sponsored workers at least the visa route minimum

• Meet any specific requirements for workers aged under 18, scale-up workers, or offshore workers

Even though the routine licence renewals requirement has been removed, which has reduced administrative burdens and costs, sponsors remain subject to strict sponsorship compliance requirements. The Home Office may still conduct checks on sponsors and request their records.

One who fails to fulfil these responsibilities may be imposed a civil penalty, have their licence downgraded (from an A-rating to a B-rating), suspended, or withdrawn.

Important things to know about the new rules in 2026

Since the 10-year sponsor licence validity period has streamlined the administrative process for many UK sponsors, there have been several misconceptions regarding the implications of these changes. Even after these changes, sponsor licence holders must continue to comply with their obligations.

1. The sponsor licence is not valid forever

While sponsors are not required to renew their licences every 4 years, they must understand that this does not mean their licence is valid indefinitely. The 10-year validity period of a licence means that, in most cases, it will remain active for a decade unless the sponsor surrenders it or the Home Office revokes it due to non-compliance. Importantly, sponsors should be aware that the Home Office retains the power to revoke licences if sponsors fail to meet compliance obligations.

2. Most but not all sponsor licences are valid for 10 Years

While most Worker and Temporary Worker licences have a 10-year validity period, there are exceptions. Sponsor licences issued under the UK Expansion Worker route and Scale-up routes have a validity period of up to 4 years and cannot be renewed or re-applied on the same routes. Those operating with sponsor licences under these routes should refer to the specific guidance applicable to their category to fully understand their obligations.

3. Sponsors need to perform the required action during the 10-year validity period

An extended validity period does not mean sponsors have to do nothing during this period. They must continue to fulfil all of their sponsor compliance obligations, which include maintaining accurate records, reporting relevant changes through the Sponsorship SMS, and cooperating with any Home Office announced or unannounced audits or inspections. Those who fail to fulfil these obligations may face UKVI's enforcement action, including suspension or revocation of their sponsor licence.

4. Licence expiry dates in SMS (Sponsorship Management Systems) are not outdated

 If a sponsor notices that their SMS still displays the original expiry dates (which is quite possible), they should rely on official correspondence confirming the 10 -year licence extension or contact the Home Office for clarification.

5. Automatic extension does not apply to all licences 

Only licences that were due to expire on or after 6 April 2024 got extended for 10 years. Licences expiring before this date were still subject to the previous 4-year renewal cycle. Such sponsors would have needed to apply for their licence renewal under the old system.

Sponsors need to understand these nuances to remain compliant and avoid any unintended breaches of their obligations. They should regularly review official guidance and ensure that they fulfil all sponsor duties, as it will help them remain in good standing with the Home Office.

How can Visa and Migration help?

We can help you renew your sponsor licence if it is nearing its 10- year expiry date.

Sponsors are still unsure about what the process will involve at the end of the licence's 10-year validity period, as the government has not ruled out the possibility of a policy reassessment, reapplication for a licence, or another form of administrative review at the end of 10 years. Sponsors should therefore remain attentive to any policy updates and be prepared for future guidance. In the meantime, their focus should be on compliance, not renewal.

Our team of expert immigration lawyers can help you in maintaining your sponsor duties and responsibilities, including record-keeping, reporting changes, and complying with wider UK immigration law.  

We work closely with businesses to ensure that their HR systems are in place, key personnel are appointed, and record-keeping processes are robust. We can also help you to design and audit your right-to-work checks in the workplace and protect you and your organisation from any immigration compliance issues.

For expert advice and queries, you can call us at +44 (0)20 3411 1261 or write at info@visaandmigration.com