Failure to report company updates is costing employers their sponsor licence
Published: 12/08/2025
We are seeing an increase in organisations having their licences suspended and revoked for what could be perceived as relatively minor reporting infringements. However, UKVI are sticking closely to the sponsor guidance
Holding a UK sponsor licence comes with a high level of responsibility. Sponsorship is a privilege, not a right and part of that privilege is the duty to keep the Home Office up to date on key changes within your organisation.
If these changes are not reported promptly and accurately through the Sponsorship Management System (SMS), you could risk serious consequences, including licence suspension or revocation.
Why Timely Reporting Matters
UKVI expects sponsors to be proactive in reporting events that could affect their licence and failing to report can result in penalties.
Information about your organisation is not only checked during planned audits. UKVI shares data with HMRC, DWP and Companies House
UKVI can spot discrepancies and any mismatch between your SMS records and publicly available data can trigger an unexpected compliance visit.
Commonly Missed Reporting Duties
Some of the most frequent issues we encounter include:
· Change of ownership: If a majority shareholding changes hands, the new owners may need to apply for a fresh licence.
· Changes to key personnel: Level 1 Users, Authorising Officers, and Key Contacts must be kept up to date.
· Business address or structure changes: Moving premises, adding new trading addresses, or changing legal entity details must be reported.
· Changes affecting sponsored workers: extended absences, changes in role or salary, or withdrawing sponsorship.
The Consequences of Not Reporting
If UKVI believes you are not meeting your sponsor duties, you could face:
· Licence suspension: Inability to assign Certificates of Sponsorship while the suspension is in place.
· Licence revocation: Loss of licence and your sponsored workers’ visas will be cancelled.
Whether it’s a change of ownership, a new key personnel appointment, or an update to a sponsored worker’s circumstances, timely reporting is essential.
How We Can Help Keep You Compliant
Our Sponsor Licence Compliance Service can assist you by providing the following services:
· Acting as Key Contact and Level 1 User to make updates on your behalf.
· Monitoring your organisation for changes and reporting them within UKVI deadlines.
· Managing Certificates of Sponsorship from allocation requests to assignment.
· Liaising directly with the Home Office to help maintain your A-rating.
With us managing your compliance, you reduce the risk of oversights, missed deadlines, and enforcement action. If this is of interest, please contact compliance@migrate-uk.com