Home Office Sponsor Licence Holders: Reporting Duties

A Guide to Complying with Home Office Sponsor Duties for Employers

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 2025.

Reporting via the Sponsor Management System (SMS)

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

Who is responsible?

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

Sponsor Changes

Business Status:
- If the business stops trading, becomes insolvent, or enters administration.
Key Personnel Changes:
- Changes to the Authorising Officer, Key Contact, or other key personnel named on your sponsor licence.
Change in Trading Name:
- Updates to your operating or trading name.

Events to Report Within 20 Working Days

Some events allow more time for reporting but are equally important to ensure compliance.

Sponsor Changes

Mergers, Acquisitions, or Takeovers:
- Full or partial takeovers, mergers, or acquisitions must be reported. Ensure details of the new ownership and the impact on sponsorship arrangements are included.
Change of Organisation Name:
- Any updates to the legal name of your organisation.
Ceasing to Trade:
- If the business permanently ceases trading, you must inform the Home Office.

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 (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 audit.

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.
Inability to sponsor new employees.

Practical Tips for Compliance

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

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.

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