A closer look at the new Sponsor UK system

What is the new Sponsor UK system?

The current SMS, which was introduced in 2008, will be replaced by the Sponsor UK IT system. This is to address the outdated functionality of the current system. It will bring a number of changes to the process of sponsoring workers and students.

Currently, sponsors directly allocate and assign Certificates of Sponsorship (CoS) to workers. However, with the new process, sponsors will submit "sponsorship submissions" to the Home Office, seeking authorisation to sponsor each worker. Once approved, they will pay the sponsorship fee and receive a sponsorship reference number, which the worker requires to proceed with their visa application.

The system, which is still in the beta phase, introduces several other notable updates:

• For workers who can use the UK Immigration: ID Check app, specific details from the sponsorship application will automatically populate in the visa form, making the process more efficient.
• Restricted access for existing users: Current Level 2 users will not have access to the new system during the beta phase, necessitating a redistribution of responsibilities within sponsoring teams.

The Home Office is currently trialling the process with selected sponsors on the Government Authorised Exchange (GAE) route.  They will be able to use the new system to apply to sponsor new workers and extend existing workers’ permissions under the GAE route, as well as reporting worker changes.

The plan is to gradually roll out the new system over the next two to four years, during which time both the SMS and the Sponsor UK system will be in operation.

Sponsor guidance updates

In addition to the announcement of the new Sponsor UK system, here are the key changes made to the Sponsor Guidance.

Broader responsibilities and compliance obligations

UK sponsors now have expanded duties for right-to-work verifications. They must conduct these checks for all sponsored workers interviewed, not just those employed Sponsor licences are now granted indefinitely, with some exceptions like the Scale-up and UK Expansion Worker visas, which are limited to four years. Non-cooperation during compliance checks or assigning roles without genuine vacancies can lead to licence suspension or revocation.

Revised licence conditions

Sponsors must now prioritise compliance with any UK and UN sanctions. The updated guidance also restricts intermediary entities acting as "employment businesses". Additionally, B-rated sponsors are limited to retaining this rating twice within a four-year period, with failure to meet compliance measures potentially resulting in restrictions or a rating downgrade.

Updates on specific routes and Immigration Skills Charge exemptions

The UK-EU Trade and Cooperation Agreement (TCA) exempts Senior and Specialist Worker visa holders from the Immigration Skills Charge if they have been employed by the sponsor for at least 12 months.

Enhanced documentation and record-keeping standards

Sponsors are required to document any decisions to waive job qualifications listed in advertisements when hiring workers, to support compliance and audit readiness.

What this means for sponsors

• System transition management: Sponsors using the Government Authorised Exchange route must navigate both the new Sponsor UK system and the existing Sponsor Management System.
• Increased compliance needs: With tighter right-to-work checks and new grounds for licence revocation, internal compliance processes need a thorough review.
• Proactive licence use: Sponsors should actively use their licence privileges, as the Home Office may monitor unused licences.
• Improved record-keeping: Sponsors should update document retention processes to ensure compliance, especially around qualifications and justifications for hiring decisions.

If you have any questions about the new system or any of the updated guidance, please do not hesitate to get in touch with our business immigration team. Our expert advisers can help you navigate the complexities of UK immigration.

Give us a call on +44 (0) 20 7759 5420 or email workpermits@sableinternational.com.