Sponsor Licence Renewal: How to Renew Before It Expires

Updated 17 March 20269 min read

What you need to know

  • The licence expires after 4 years and must be actively renewed.
  • Start preparing at least 3 months before the expiry date.
  • The renewal fee is the same as the initial application fee.
  • Your compliance history is reviewed during renewal.
  • Failure to renew can result in curtailment of your sponsored workers' visas.

Sponsor licences must be renewed every 4 years. The renewal process reviews your compliance history and ongoing eligibility. This guide covers when to apply, what the Home Office checks, costs, and what happens if you miss the deadline.

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When Your Licence Expires

Every sponsor licence has an expiry date, typically 4 years from the date it was granted. You can find your expiry date on the Sponsor Management System (SMS).

The Home Office usually sends a reminder about renewal approximately 3 months before the expiry date. However, you should not rely on this reminder. Set your own calendar alert and begin the renewal process at least 3 months in advance.

The Renewal Process

Renewal is done through the Sponsor Management System. The process involves:

  • Submitting a renewal application through the SMS
  • Paying the renewal fee (£536 for small/charity sponsors, £1,476 for medium/large)
  • Providing updated supporting documents if requested
  • Confirming that your key personnel are still correct

The Home Office will review your compliance history during the licence period. If you have been A-rated throughout with no action plans, downgrades, or compliance issues, renewal is usually approved without difficulty.

If there have been compliance concerns during the licence period, the Home Office may investigate further before deciding on renewal. This could include a compliance visit. See the GOV.UK licence renewal page for the official process.

What the Home Office Checks at Renewal

During renewal, the Home Office assesses:

  • Compliance record: Have you met your compliance duties throughout the licence period?
  • Reporting history: Have you submitted required reports on time via the SMS?
  • Record-keeping: Are your records up to date and complete?
  • Organisation status: Is the business still operating and genuine?
  • Key personnel: Are the Authorising Officer, Key Contact, and Level 1 User still appropriate?

A clean compliance record makes renewal significantly easier. If you have had an action plan during the licence period, the Home Office will check whether you completed it satisfactorily.

Renewal Costs

The renewal fee matches the initial application fee:

  • Small or charitable sponsor: £536
  • Medium or large sponsor: £1,476

Priority processing is available for an additional £500. See the full sponsor licence cost breakdown for details.

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What Happens If You Miss the Deadline

If your licence expires without renewal, the consequences are severe:

  • You immediately lose the ability to sponsor any workers
  • You cannot assign new Certificates of Sponsorship
  • Existing sponsored workers may have their visas curtailed, giving them a limited time to find a new sponsor or leave the UK
  • To sponsor again, you would need to submit a completely new licence application from scratch

This is a situation that must be avoided. The impact on your employees — who may lose their right to remain in the UK — is significant. Set multiple reminders and assign responsibility for renewal to a specific person in your organisation.

Preparing for Renewal

To ensure a smooth renewal:

  • Audit your records 6 months before expiry. Check that every sponsored worker's file is complete and up to date.
  • Review your reporting history. Make sure all required reports have been submitted on time.
  • Update key personnel if needed. If any key person has changed since the licence was granted, update the SMS before renewal.
  • Prepare for a potential compliance visit. Even if you have been A-rated throughout, renewal may trigger a visit. Have your systems in order.
  • Check your organisation's details. Ensure your Companies House registration, trading address, and other details are current.

Changes Since Your Last Application

If your business has changed significantly since the licence was first granted — for example, if you have grown from a small to a medium/large organisation, changed your trading name, or moved premises — make sure these changes are reflected in the SMS and in your renewal application. Discrepancies between your records and the Home Office's records can cause delays.

If your business has changed from a small to a medium/large organisation, you will pay the higher fee (£1,476) at renewal.

Next Steps

Check your licence expiry date on the SMS today. If renewal is due within the next 6 months, start your compliance audit now. If it is further away, set a reminder and ensure your compliance duties are being met consistently.

Related guides:

This guide is general immigration information, not immigration advice under s.82 Immigration and Asylum Act 1999. Immigration rules change frequently. For advice on your specific situation, consult an IAA-authorised adviser or an SRA-regulated immigration solicitor. Always check GOV.UK for the authoritative current rules.

Related guides

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