UK Sponsor Management System (SMS): Guide for Employers

1. Introduction

The UK Sponsor Management System (SMS) is an essential online platform for employers holding a sponsor licence under the Skilled Worker and Temporary Worker routes. It facilitates day-to-day sponsorship duties, such as assigning Certificates of Sponsorship (CoS), managing licence details, and reporting migrant worker activities.

For UK businesses hiring overseas talent, SMS is the backbone of compliance with UK Visas and Immigration (UKVI) regulations. Failure to use it correctly can lead to serious consequences, including licence downgrades, suspension, or even revocation.

In our previous blogs, such as the Guide to Skilled Worker Sponsor Licence Updates 2025 and Understanding UKVI Compliance 2025, we highlighted the critical role of SMS in maintaining compliance. Now, we’re diving deeper with a dedicated guide to help you master the SMS, ensuring you meet your obligations and avoid costly penalties.

For the rules behind the system, including who must hold each Key Personnel role, the ban on sharing log in details and what happens if a role falls vacant, see our guidance on Sponsor Licence: SMS and Key Personnel.

2. What is the UK Sponsor Management System (SMS)?

The Sponsor Management System (SMS) is an online portal provided by UK Visas and Immigration (UKVI) for employers with a sponsor licence. It enables sponsors to:

● Manage licence details, including key personnel and organisation information.

● Assign Certificates of Sponsorship (CoS) to migrant workers.

● Report activities related to sponsored workers, such as non-attendance or changes in employment.

● Renew CoS allocations, ensuring uninterrupted sponsorship capabilities.

SMS is not just a tool—it’s a legal requirement for maintaining compliance with UK immigration rules. Failure to use it correctly can lead to severe consequences, making it essential for sponsors to understand its functions thoroughly.

3. Why is SMS Important for UK Sponsors?

SMS is the backbone of sponsor compliance, ensuring employers meet their obligations under UKVI regulations. Its importance cannot be overstated:

✔ Compliance: SMS helps sponsors adhere to UKVI rules by providing a structured platform for managing sponsorship duties.

✔ Consequences of misuse: Failing to use SMS correctly can result in:

○ Downgrading of your sponsor licence rating.

○ Suspension or revocation of your licence.

○ Civil penalties or even criminal prosecution for illegal working.

✔ Efficiency: SMS streamlines processes like CoS allocation and reporting, saving time and reducing errors.

By using SMS effectively, sponsors can safeguard their licence, maintain their A-rating, and avoid costly disruptions to their business.

4. Who Can Use the Sponsor Management System?

Access to SMS is restricted to authorised personnel within organisations holding a valid sponsor licence. The key roles include:

● Authorising Officer: Responsible for the overall management of the sponsor licence and ensuring compliance.

● Key Contact: Acts as the main point of contact between the sponsor and UKVI.

● Level 1 Users: Handle day-to-day SMS operations, such as assigning CoS and reporting worker activities.

● Level 2 Users: Have limited access, primarily for assigning CoS and reporting on specific cases.

The Authorising Officer and Key Contact do not have SMS access themselves unless they are also appointed as Level 1 Users.

From 9 September 2026 no new Level 2 Users can be appointed. Any existing Level 2 Users must be converted to Level 1 Users, if eligible, or deactivated by 8 March 2027, after which the Home Office deactivates any that remain.

Each role has distinct responsibilities, and it’s crucial to ensure that only trained and authorised individuals have access to the system. This minimises the risk of errors and ensures compliance with UKVI requirements.

We have a Authorising Officer Guide for UK Sponsor Licence Compliance blog for more details >>

5. How to Log On to SMS for the First Time?

To access the Sponsor Management System (SMS), your organisation must hold a valid sponsor licence, and you must be registered as a Level 1 User (or an existing Level 2 User).

When your sponsor licence application is approved, the Authorising Officer (AO) will receive a user ID via post. The Level 1 user will receive the corresponding password by email. It’s essential for the Authorising Officer to pass this information to the Level 1 user, who will use it to log into the Sponsor Management System (SMS) for the first time.

Upon logging in, the Level 1 user will be prompted to change the temporary password to one of their own choosing, following the UKVI's security requirements. Once the password has been updated, the user can begin managing their SMS account. Importantly, Level 1 users have full access to SMS functions, while any existing Level 2 Users have more limited access.

To ensure security and compliance, passwords must remain confidential, and only a Level 1 User (or an existing Level 2 User) should have access to SMS functionalities. If any issues arise during login or password change, UKVI provides troubleshooting resources to address potential login errors or system malfunctions.

Multi-factor authentication is mandatory for all SMS Users. Each log in needs a one-time passcode, sent by text to a Level 1 User with a valid mobile number and otherwise by email, and valid for 10 minutes. Level 1 Users also need a correct date of birth on the account. The Home Office contacts you with instructions when it is switched on for your account.

An account not used for 12 months is treated as inactive. The Home Office contacts you, and deactivates the account if no action is taken within 3 months. If that leaves you with no active Level 1 User, your licence is suspended, so log in at least once a month.

Troubleshooting Common Login Issues

● Forgotten Password? – Use the ‘Forgotten your password?’ option. A new temporary password will be sent to your registered email.

● Locked Account? – If you enter the wrong credentials three times, wait 30 minutes before trying again.

● Access Issues? – If your licence has been revoked you cannot log in; if it is suspended or dormant you can log in but cannot assign CoS or request allocations.

6. How to Manage and Replace Key Personnel in SMS?

Maintaining up-to-date key personnel details is essential for compliance with UKVI regulations. Key personnel are responsible for the effective management of the sponsor licence within SMS, and any changes in these roles must be reported to UKVI.

Adding or Removing SMS Users

SMS user changes are made through the ‘Manage Level 1 and 2 users’ menu in SMS. A Level 1 User can request additional Level 1 Users, which UKVI must approve, and can deactivate the account of anyone who has left or no longer needs access. It is generally advised to keep the number of users minimal for better oversight and accountability. Regularly reviewing key personnel roles helps to ensure the sponsor’s responsibilities are appropriately managed and ensures continuous compliance with sponsor duties.

Replacing the Authorising Officer or Key Contact

If your Authorising Officer or Key Contact changes, a Level 1 User must request the change through the ‘Request changes to licence details’ menu in SMS, using ‘Replace your Authorising Officer’ or ‘Replace your Key Contact’. Use the matching ‘Amend’ function where the same person’s details have changed. The signed submission sheet and any supporting documents must reach UKVI within 5 working days, and the new person must meet the eligibility criteria for the role.

Unlike most organisational changes, replacing your Authorising Officer is not covered by the 20 working day reporting period. You must have an eligible Authorising Officer at all times, so request the change as soon as it takes effect.

Note: A Level 1 user must action these changes. If no active Level 1 user exists, a Sponsor Change of Circumstances form must be submitted.

7. How to Manage Your Sponsor Licence Details in SMS?

Regular monitoring and updating of your sponsor licence details are critical for maintaining compliance and managing your sponsorship responsibilities. Licence details, such as the business name, address, and other key contact information, need to be kept accurate at all times at the ‘Licence Summary’ in SMS. This ensures that communication from UKVI and other legal entities reaches the correct personnel and that the sponsor remains in good standing.

Changes to these details can be reported through SMS by submitting the appropriate forms. Amendments can include organisational changes, such as relocation, office closures, or rebranding. Most of these changes must be reported within 20 working days of your becoming aware of them, so report them promptly to avoid discrepancies that may affect the validity of your sponsor licence.

Automatic vs. Manual Updates in SMS

In certain cases, some updates may be processed automatically, but for most changes, UKVI will review the request and require supporting documentation. Maintaining accurate and up-to-date licence details helps mitigate potential compliance risks, ensuring that the sponsor can continue assigning Certificates of Sponsorship (CoS) and fulfilling all sponsor duties.

8. How to Manage Your Sponsor Licence Services in SMS?

A Worker or Temporary Worker sponsor licence does not expire. It remains valid unless the Home Office revokes it or you surrender it, so there is no renewal application and no renewal fee. The only exceptions are Scale-up and UK Expansion Worker licences, which you can hold for a maximum of four years. For those two routes, your SMS account shows the expiry date.

The premium customer service scheme is closed. A-rated sponsors can pay for faster consideration of some change requests through the priority change of circumstances service.

We have a Guide to Skilled Worker Sponsor Licence Updates 2025 blog for more details >>

9. How to Create and Assign Certificates of Sponsorship (CoS) in SMS?

A Certificate of Sponsorship (CoS) is a crucial requirement for Skilled Worker and Temporary Worker routes, enabling migrant workers to apply for visas. It is issued and managed through the Sponsor Management System (SMS). The CoS is not a physical document but a virtual record that must be assigned to the worker before their visa application.

Once a sponsor is logged into SMS, they can create and assign a CoS by inputting the migrant worker’s details at ‘Workers’ section in SMS, including their job role, salary, and contract length. The system requires confirmation that all the information provided aligns with UKVI’s sponsorship policies.

There are two types of CoS:

● Undefined CoS are used for Skilled Workers applying from inside the UK, and for workers on other routes wherever they apply from.

● Defined CoS are used for Skilled Worker applicants applying from outside the UK.

Our Certificate of Sponsorship (CoS) guidance explains both types.

When assigning a CoS, sponsors should ensure that all details are accurate, and once confirmed, the CoS is assigned to the migrant. Payment for the CoS is processed during this step, completing the sponsorship process for that worker.

10. How to Renew Allocations and Apply for Additional CoS in SMS?

As part of maintaining a sponsor licence, annual CoS allocations must be renewed, or additional CoS may need to be requested to ensure that the sponsor can continue to hire migrant workers.

Renewing annual CoS allocations is based on the number of CoS issued in the preceding year. Some sponsors receive their annual allocation automatically, equal to the number of CoS they assigned in the previous CoS year. This applies if your licence is A-rated, your current allocation is active and your route is eligible (Seasonal Worker, Secondment Worker, Service Supplier and UK Expansion Worker are not). Otherwise, request renewal at ‘Licence Summary, Applications and Services’ in SMS, up to three months before the allocation expires.

Requesting Additional CoS During the Allocation Year

If more CoS are required before the annual renewal period, sponsors can request additional CoS at ‘Request CoS Allocation Increase’ in SMS. A business case explaining why the additional CoS are needed must be provided to UKVI for review. The request will be assessed and, if approved, additional CoS will be allocated for the sponsor’s use.

Having accurate CoS allocations ensures the sponsor’s ability to manage their workforce and comply with immigration laws effectively.

11. How to Report Activities Relating to Sponsored Workers in SMS?

Sponsors are obligated to report changes to a migrant worker’s status in the UK within 10 working days. These changes could include non-attendance, role modifications, or early termination of employment. The Sponsor Management System (SMS) allows sponsors to record and report these updates directly to UKVI through ‘Sponsorship Duties’ in SMS. For the full list of what must be reported and the deadline for each, see our guidance on Sponsor Licence: Compliance and Duties.

To report a worker’s activity, the sponsor must enter the relevant details, such as the nature of the activity (e.g., worker’s absence from work or job change). The information entered must be accurate, as any discrepancies could lead to compliance issues. Depending on the severity of the issue, UKVI may follow up with additional checks.

Failure to report activities in a timely and accurate manner can lead to significant consequences, including penalties or even loss of sponsor licence. By maintaining up-to-date records in SMS, sponsors can avoid these risks and stay in compliance with their sponsor duties.

12. How to Report Terminating a Sponsored Worker’s Employment in SMS?

When a sponsored worker’s employment ends, either voluntarily or through dismissal, the sponsor is required to report this termination within 10 working days through ‘Sponsorship Duties’ in SMS. This ensures the worker's visa status is updated accordingly, and UKVI is aware of any changes in the worker’s circumstances.

The termination report should include the last working day, the reason for termination, and the worker’s last known address, phone number and personal email address. If the worker’s visa is affected by this termination, UKVI may cancel their permission, which means the worker must leave the UK or make a new application before it ends.

Failure to report a worker’s termination within the required timeframe can result in serious compliance consequences, such as a downgrade, suspension or revocation of the sponsor licence, or damage to the sponsor’s reputation. Timely and accurate reporting helps mitigate these risks and ensures the sponsor’s continued compliance with UKVI regulations.

13. Best Practices for Using the SMS Efficiently

To avoid compliance risks and streamline sponsorship duties, sponsors should follow these best practices:

✔ Keep SMS Data Up to Date

● Regularly review licence details to ensure accuracy.

● Ensure key personnel changes are promptly updated.

✔ Maintain Compliance with UKVI Regulations

● Follow reporting deadlines to avoid penalties.

● Monitor sponsored worker activities and document updates.

✔ Avoid Common Mistakes

● Never share SMS login details to prevent unauthorised access.

● Ensure CoS assignments match the worker’s actual job role.

Using SMS effectively ensures smooth operations, compliance, and the ability to continue hiring migrant workers under UKVI regulations.

14. How Can Work Permit Cloud Help?

At WorkPermitCloud Ltd, we specialise in business immigration and HR solutions, helping employers and Skilled Workers navigate complex UKVI regulations. Our services include:

● Compliant HR Software: Ensuring your HR systems meet UKVI sponsor duties.

● Right to Work Checks: Verifying job applicants' eligibility quickly and efficiently.

● SMS Assistance and Compliance Audits: We provide expert advice regarding SMS management and conduct compliance audits to ensure adherence to UKVI regulations.

Legal Consultation: Book a free appointment with our experts for tailored advice.

Let us simplify your sponsorship journey and keep your business compliant.

15. Conclusion

The UK Sponsor Management System (SMS) is a vital tool for employers managing migrant workers, ensuring compliance with UKVI regulations. From assigning CoS to reporting worker activities and renewing CoS allocations, proper use of SMS is crucial to maintaining an active and compliant sponsor licence. By staying informed and leveraging expert support, businesses can streamline sponsorship duties and avoid penalties.

For tailored assistance with SMS management, compliance audits, and HR solutions, Work Permit Cloud is here to help. Stay compliant, stay ahead.