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Tier 2 (Skilled Worker) Sponsor Licence: How Long Does It Last? Sponsor Licence Renewal

About Skilled Worker Sponsor Licence

A Skilled Worker (formally known as Tier 2 scheme) Sponsor Licence is a licence that gives UK employers permission to hire migrant skilled workers from within and outside of the UK.

Due to the impact of Brexit and the Covid pandemic, many organisations suffer from staff shortage issues, especially NHS, logistics, agriculture and farming, hospitality industry, restaurants and care homes, some organisations even had to close their business because they could not find any suitable employees from the local level market.

However, if a company has a valid sponsor licence, their options are broader, they can access the global talent pool and recruit skilled workers from overseas. If you want to know how to apply for a Sponsor Licence, please read our previous blog here.

WorkPermitCloud Limited has received a lot of inquiries about Sponsor License applications, and we have accumulated rich experience in successful applications. Here we highlight some common questions regarding the Sponsor License: How long does a sponsor licence last? What to do if it expires?

How long does a Sponsor Licence last?

Once you got your sponsor licence granted from the Home Office, your sponsor licence will remain valid for 4 years from the date. You can find the start and expiration date on the licence summary on your Sponsorship Management System (SMS).

However, if you do not comply with your sponsor duties during the 4 years, your sponsor licence might be suspended, revoked or downgraded. If you want to know the duties of a Licenced Sponsor, please read our previous blog here.

If you want to continue to sponsor your migrant employees after the expiry date, you’ll need to renew your licence well in advance of the expiry date.

When to renew a Sponsor Licence?

You can apply for a renewal 90 days before the expiration date. You cannot renew your sponsor licence when the expiration date is due, when your sponsor licence is expired, you’ll have to apply for a Sponsor Licence again if you wish to continue to sponsor your migrant workers.

Even if your employee might have a longer period visa than your sponsor licence, you still have to renew your sponsor licence to legally employ your migrant workers.

Who should renew the Sponsor Licence?

The Sponsor Licence renewal application should be done by the Level 1 user, Level 1 user must be appointed by the Authorising Officer (AO) through the SMS, if the Level 1 user and AO is the same person, the AO can also submit the renewal application. Level 1 user is responsible for all day-to-day management of your licence using the SMS.

How to renew a Sponsor Licence?

The Sponsorship Licence Renewal process should be done through SMS. The Level 1 user must have the authority of the AO to submit the Sponsor Licence Renewal application, and the ‘Name’ and ‘Position within the organisation’ entered in the declaration form should be the level 1 user.

How much does it cost to renew a Sponsor Licence?

For a small organisation/charity (1-50 staff, less than 10.2 million annual turnovers, total assets are worth £5.1 million or less), the renewal fee is £536.

For a medium or large organisation (more than 50 staff, more than10.2 million annual turnovers, total assets are worth more than £5.1 million), the renewal fee is £1476.

What to pay attention to during the Sponsor Licence Renewal?

Around the time of Sponsor Licence renewal, you need to make sure you still have a robust HR system in place, i.e. WpcHr (https://workpermitcloud.co.uk/hrms), keep following your sponsor duties (record keeping and reporting), should also be prepared for a compliance visit, this is to ensure that you remain compliant and still qualify for a Sponsor Licence.

Some of the common reasons that the Sponsor licence Renewal might be refused are:

- failing to comply with sponsor duties

- failed to do record keeping of changes in the organisation or their employees

- failed to report changes in the organisation or their employees

- does not have a robust HR system in place

Need help with your Sponsor Licence Renewal?

If you have any questions about the Sponsor Licence renewal or want to discuss your specific situation with us, please feel free to contact us at info@workpermitcloud.co.uk

At WorkPermitCloud Limited, we have a dedicated team to assist you in your sponsorship licence renewal process. We offer professional immigration advice regulated by Office of the Immigration Services Commissioner (OISC).








Md Lutfur Rahman FCILEx

Immigration Advisor and Commissioner of Oath

Managing Director

Work Permit Cloud Limited

Let us help you with your Skilled Worker Sponsor Licence UK