Home Office Sponsor Licence Holders - Reporting Duties

A Guide to Complying with Home Office Sponsor Duties for Employers

As a UK sponsor licence holder, you must report certain changes to the Home Office through the sponsorship management system (SMS). Most changes affecting a sponsored worker are reported within 10 working days, and most changes to your organisation within 20 working days.

As a UK business holding a Home Office sponsor licence, you have critical responsibilities to ensure compliance with immigration laws. Among these is the duty to report specific changes or events to the Home Office via the Sponsor Management System (SMS). Failing to meet these requirements can lead to penalties, including suspension or revocation of your sponsor licence.

This guide provides an overview of reporting duties for sponsor licence holders, reflecting the latest Home Office requirements in 2026.

Key takeaways

• Report most changes affecting a sponsored worker within 10 working days and most changes to your organisation within 20 working days, all through the Sponsor Management System.
• Ten-day worker events include a failure to start, termination, a change in role or SOC code, an unauthorised absence of 10 consecutive working days or more, a work location change, and a salary reduction below the CoS figure.
• Twenty-day events cover changes such as insolvency, a merger or acquisition, Key Personnel changes, and changes to your organisation or trading name.
• A routine pay rise is not reportable: Only a reduction in salary below the CoS level must be reported.
• Only your Authorising Officer, Key Contact or an assigned Level 1 User can submit reports, so these roles must be filled and trained.
• Missing a deadline can lead to downgrade, suspension or revocation and civil penalties, so keep a record of every report submitted.

Reporting via the Sponsor Management System (SMS)

The sponsorship management system (SMS) is the primary portal for communicating with the Home Office about your sponsorship activities. It is where you update the Home Office about changes affecting your business or your sponsored employees.

Who is responsible?

• Authorising Officer, Key Contact, or an assigned Level 1 User: These individuals must ensure reports are submitted accurately and on time.
• Ensure key personnel are aware of their duties to maintain compliance.

Events to Report Within 10 Working Days

These events must be reported to the Home Office promptly to avoid non-compliance penalties.

Sponsored Employee Changes

• Failure to Start Work: The sponsored employee does not turn up for their first day, or their start date is delayed by more than 28 days from the date stated on the Certificate of Sponsorship (CoS), visa approval notification or visa start date, whichever is the latter.
• Termination of Employment: The worker resigns or is dismissed before the end date on their CoS. Include the last known address and contact details.
• Change in Job Role or Duties: A change in job title, promotion, or core duties, or a new role falling under a different Standard Occupational Classification (SOC) code (a new CoS and visa application may be required).
• Unauthorised Absence: The worker is absent without permission for 10 consecutive working days or more.
• Work Location Changes: Any changes to the normal work location, such as moving to a different office or working from home (where applicable).
• Salary Reduction: A reduction in salary below the amount stated on the CoS (excluding temporary reductions allowed under certain Home Office guidelines). A routine pay rise is not reportable.

Events to Report Within 20 Working Days

Some events allow more time for reporting but are equally important to ensure compliance. Changes to your organisation are reported in this group.

Sponsored Employee Changes

• Transfer Under TUPE or Similar Arrangement: A sponsored worker is transferred to another sponsor because of a business reorganisation, such as a merger or acquisition.

Sponsor Changes

• Business Status: The business stops trading, becomes insolvent, enters administration, or permanently ceases to trade.
• Mergers, Acquisitions, or Takeovers: Full or partial takeovers, mergers, or acquisitions must be reported. Include details of the new ownership and the impact on sponsorship arrangements.
• Key Personnel Changes: Changes to the Authorising Officer, Key Contact, or other key personnel named on your sponsor licence. A replacement Authorising Officer or Key Contact should be nominated without delay, as these roles must always be filled.
• Change of Organisation Name: Any updates to the legal name of your organisation.
• Change of Trading Name: Updates to your operating or trading name.

Key Points to Remember

• Accuracy is Critical: Always double-check the information before submitting reports. Errors can result in compliance breaches.
• Timeliness Matters: Meeting the reporting deadlines of 10 or 20 working days is non-negotiable.
• Documentation: Maintain thorough records of all reports submitted via the SMS. These may be required during a Home Office compliance visit.

Consequences of Non-Compliance

Failing to meet your reporting duties can have serious repercussions, including:

• Suspension or revocation of your sponsor licence.
• Civil penalties or fines.
• An inability to sponsor new employees.

Practical Tips for Compliance

1. Assign Roles Clearly: Ensure that your Authorising Officer, Key Contact, and Level 1 Users are fully trained and understand their responsibilities.
2. Monitor Changes Regularly: Establish processes to track changes affecting your business or sponsored employees.
3. Use Technology: Consider software tools that help manage sponsorship duties and send reminders for reporting deadlines.
4. Seek Professional Support: Engage with immigration specialists to review your processes and keep your compliance current.

Where to Find More Information

The Home Office publishes detailed guidance for sponsor licence holders. Always refer to the most recent documentation to ensure compliance with evolving requirements. The most relevant sources are the GOV.UK sponsor duties and compliance guidance (Part 3) and the GOV.UK sponsorship employer guide.

For additional support or advice, consider consulting experts in sponsor licence compliance to minimise risks and maintain your ability to hire international talent.

Protect Your Sponsor Licence

Managing a Home Office sponsor licence can be complex, but our compliance experts are here to help. From reporting and updates to audits and comprehensive support, we ensure your business meets Home Office requirements at every step.

Book a Call | Quick Health Check

We check this guide against the current GOV.UK sponsor guidance. Last reviewed 23 September 2026.

Frequently Asked Questions

How long do I have to report a change to a sponsored worker?

You must report most changes to a sponsored worker within 10 working days of the event, using the sponsorship management system (SMS).

How long do I have to report a change to my organisation?

Changes to your organisation, such as a merger, a change of ownership, insolvency, or a change of name, must be reported within 20 working days.

Do I need to report a pay rise for a sponsored worker?

No. Only a reduction in salary below the level stated on the Certificate of Sponsorship is reportable. Salary increases do not need to be reported.

What happens if I miss a reporting deadline?

Your sponsor licence can be downgraded, suspended or revoked, and you may be unable to sponsor new workers. Report as soon as you can and keep a record of the report.

Who can submit reports on the SMS?

Your Authorising Officer, Key Contact, or an assigned Level 1 User.