A Rating Sponsor Licence UK

Employers in the UK who wish to sponsor foreign workers must hold a valid sponsor licence issued by the Home Office. When a licence is granted, it is given a rating that reflects the level of trust the Home Office places in the sponsoring organisation. An A rating sponsor licence is the standard status for compliant licence holders and is crucial for businesses that want to recruit skilled workers from overseas. A sponsor licence is typically valid for four years and must be renewed on time to remain active. The A rating can be reviewed at any point during the licence period and can be downgraded, suspended, or revoked if compliance fails.

What this article is about: This guide explains what an A rating sponsor licence means for employers, how to apply for and maintain this rating, and the consequences of failing to meet sponsor duties. It covers the distinction between A and B ratings, the application process, compliance obligations (including reporting deadlines and organisation-level changes), and best practice for sustaining an A rating over the long term. By the end, employers should understand both the legal framework and the practical steps needed to remain in good standing as a licensed sponsor.

Section A: What is an A Rating Sponsor Licence?

When an organisation applies for a sponsor licence, the Home Office assesses its suitability to act as a trusted sponsor of overseas workers. If the application is approved, the licence will normally be granted with an A rating. This rating indicates that the business has demonstrated it can meet the necessary compliance duties, such as keeping proper records and reporting certain events to the Home Office.

An A rating sponsor licence allows the employer to assign Certificates of Sponsorship (CoS) to prospective employees under the relevant visa routes, such as the Skilled Worker visa. Without an A rating, the organisation cannot lawfully issue CoS, and its ability to recruit internationally would be significantly restricted. Only A-rated sponsors are permitted to assign new CoS, although B-rated sponsors may continue to employ existing sponsored workers until their visas expire or the licence is revoked.

1. Definition under UK immigration law

An A rating sponsor licence is the default level of approval issued to organisations that meet the Home Office’s requirements under the Immigration Rules and sponsor guidance. It signals full compliance at the time of the licence grant. The rating reflects that the sponsor is considered reliable, with the appropriate HR systems in place to monitor sponsored workers.

2. Difference between A rating and B rating

The Home Office can downgrade an A rating to a B rating if the organisation is found to be failing in its duties. A B rating means the sponsor is still licensed but is under enhanced scrutiny and must follow a Home Office action plan at its own cost to regain A rating status. During this period, the sponsor cannot issue new CoS, limiting their ability to bring in new staff. The cost of an action plan is currently £1,476.

By contrast, an A rating gives sponsors full operational capacity, including the ability to assign CoS and renew visas for existing workers. Maintaining the A rating is therefore critical for uninterrupted business operations.

3. Role of the Home Office Sponsor Management System (SMS)

The Sponsor Management System (SMS) is the online portal through which licensed sponsors manage their licence. It is used to assign CoS, report changes to sponsored workers’ circumstances, and update company details. Holding an A rating means the employer has unrestricted use of the SMS in line with its compliance duties. A downgrade to B rating restricts these functions, while persistent non-compliance can lead to suspension or revocation of the licence altogether.

Section A Summary
An A rating sponsor licence is the baseline approval granted by the Home Office to employers who meet all compliance and suitability requirements. It enables sponsors to fully access the SMS and lawfully assign Certificates of Sponsorship. The distinction between A and B ratings is significant: while an A rating permits full sponsorship activity, a B rating places the sponsor under remedial measures and restricts recruitment. For businesses reliant on overseas recruitment, maintaining an A rating is essential to ensure continuity of workforce planning.

Section B: Applying for an A Rating Sponsor Licence

Applying for a sponsor licence is the first step for any organisation intending to recruit workers from overseas. The application process is detailed and evidence-based, with the Home Office requiring proof that the business is genuine, trading lawfully in the UK, and capable of complying with ongoing sponsor duties. If successful, the licence will be granted with an A rating, giving the employer full sponsorship rights from the outset.

1. Eligibility criteria for employers

To qualify for a sponsor licence and receive an A rating, the employer must satisfy the following requirements:

• Lawfully operating in the UK: The organisation must be genuine and actively trading. This may be evidenced by corporate registration documents, tax returns, or financial statements.
• Appropriate HR systems: Employers must show they have robust HR processes for monitoring sponsored workers, such as recording attendance, updating employee records, and reporting absences.
• No adverse history: Directors, owners, and key personnel must not have unspent criminal convictions for immigration offences, fraud, or similar conduct.
• Appointed key personnel: The employer must nominate an Authorising Officer, Key Contact, and Level 1 User to manage the licence through the SMS.

Meeting these criteria ensures the business is considered trustworthy and capable of managing sponsorship responsibilities.

2. Application process and required documents

Applications are made online through the Home Office portal, followed by the submission of supporting documents. Employers must provide at least four pieces of evidence from an approved list, which may include:

• Latest audited or unaudited accounts
• Employer’s liability insurance certificate
• VAT registration certificate
• HMRC registration for PAYE and NI
• Recent business bank statements

The Home Office may also request additional documents depending on the type of business. Once submitted, the application is assessed, and the Home Office may conduct a compliance visit before a decision is made. It is also important for employers to specify which visa routes the licence should cover, such as Skilled Worker or Global Business Mobility routes.

3. Costs and processing times

The fee for applying for a sponsor licence depends on the size and type of organisation. As of 2025:

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

Processing times vary, but the Home Office aims to decide most applications within 8 weeks. A priority service may be available, subject to limited capacity, at an additional cost of £500 for a decision within 10 working days.

Section B Summary
To obtain an A rating sponsor licence, employers must prove they are genuine, compliant, and capable of managing the duties that come with sponsorship. The process requires careful preparation of documentation, payment of the relevant fee, and potentially a Home Office compliance visit. Once granted, the licence begins with an A rating, providing full sponsorship rights from the outset.

Section C: Employer Duties Under an A Rating

Holding an A rating sponsor licence is not just a one-off approval. It carries with it ongoing compliance obligations that employers must meet consistently. The Home Office places significant responsibility on licence holders to monitor sponsored workers and to ensure that immigration control is upheld. Failing to comply can quickly result in a downgrade to a B rating, suspension, or even revocation of the licence.

1. Record-keeping and reporting duties

Employers must maintain accurate and up-to-date records for all sponsored workers. This includes:

• Copies of right to work checks and immigration documents
• Up-to-date contact details and residential addresses
• Evidence of recruitment processes and employment contracts
• Absence records and attendance monitoring

In addition, sponsors are legally required to report certain changes to the Home Office through the SMS, such as:

• If a sponsored worker does not start their role
• If a worker is absent without permission for more than 10 consecutive days
• If employment ends earlier than expected
• If job details or salaries change in a way that affects visa eligibility
• Changes to the organisation, such as business address, ownership, or key personnel

Most reporting duties must be completed within 10 working days of the change occurring. Failure to meet these duties can be treated as a breach of licence conditions.

2. Compliance visits and Home Office monitoring

The Home Office has the right to conduct announced or unannounced compliance visits at any time during the life of a licence. During a visit, caseworkers will check HR records, interview staff, and test whether systems are sufficient to monitor immigration status. Even if no prior warning is given, the employer must be prepared to demonstrate compliance.

Sponsors must also respond promptly to Home Office requests for information or clarification. Ignoring or delaying responses can raise concerns about the organisation’s suitability to hold a licence.

3. Risks of downgrading to B rating or revocation

Where breaches are identified, the Home Office may downgrade the sponsor licence from an A rating to a B rating. This requires the employer to pay for and follow a Home Office action plan designed to rectify compliance failings. While on a B rating, sponsors cannot assign new Certificates of Sponsorship, significantly restricting recruitment. The action plan fee is currently £1,476.

If the organisation fails to meet the terms of the action plan, or if serious breaches are found, the licence may be revoked altogether. Revocation means the employer loses all sponsorship rights, and existing sponsored workers may have their visas curtailed.

Section C Summary
Employer duties under an A rating sponsor licence are extensive and continuous. Sponsors must keep thorough records, report key changes (including those relating to the organisation), and remain prepared for Home Office inspections. A failure to comply risks downgrading to a B rating or even losing the licence entirely. For organisations relying on overseas recruitment, strict adherence to sponsor duties is therefore essential.

Section D: How to Maintain A Rating Status

Securing an A rating sponsor licence is only the beginning. Employers must take proactive steps to ensure the rating is maintained over the lifetime of the licence. The Home Office monitors sponsors continuously, not just at the point of application. An A rating can be downgraded or revoked if compliance lapses occur. Long-term planning and strong internal controls are therefore essential for safeguarding sponsor status.

1. Internal HR systems and audits

Employers should put in place HR systems that are capable of monitoring the immigration status of every sponsored worker. This includes setting reminders for visa expiry dates, logging attendance, and keeping digital or physical copies of all relevant documents. Regular internal audits can help identify gaps in compliance before they become an issue. Many sponsors also carry out mock compliance visits to test readiness for Home Office inspections.

2. Common pitfalls leading to compliance issues

Some of the most frequent reasons for licence downgrades or revocations include:

• Failure to carry out or retain valid right to work checks
• Not reporting sponsored worker absences or job changes within 10 working days
• Inadequate record-keeping, such as missing contracts or pay slips
• Allowing untrained staff to access and use the Sponsor Management System
• Not updating the Home Office about changes to the business, such as new sites or key personnel

Being aware of these pitfalls enables employers to avoid mistakes that can have severe consequences.

3. Best practice for long-term compliance

Best practice involves embedding immigration compliance into day-to-day operations. This means:

• Assigning responsibility to trained staff for using the SMS and managing sponsored workers
• Keeping clear policies and guidance documents for HR teams and managers
• Reviewing compliance at board level to ensure accountability
• Seeking legal or specialist advice when uncertainties arise

In addition, sponsors must ensure they apply to renew their licence before expiry. Sponsor licences are valid for four years, and if not renewed in time, the licence will expire, which has the same effect as revocation. This would immediately prevent the employer from continuing to sponsor workers.

Section D Summary
Maintaining an A rating sponsor licence requires more than meeting minimum obligations. Employers must invest in strong HR systems, conduct regular audits, and implement best practice across the organisation. Awareness of common compliance pitfalls, combined with a culture of accountability, helps ensure the business remains in good standing with the Home Office and retains full sponsorship rights.

FAQs

What does an A rating sponsor licence mean?
An A rating sponsor licence is the standard rating issued by the Home Office to organisations that meet all the requirements for sponsoring migrant workers. It confirms that the employer has the appropriate HR systems and compliance measures in place, and it allows them to assign Certificates of Sponsorship to new hires.

Can an A rating be downgraded?
Yes. If the Home Office finds evidence of non-compliance, it can downgrade the licence from A to B rating. While on a B rating, the sponsor cannot issue new Certificates of Sponsorship and must pay for and follow an action plan to restore its A rating. Employers may still employ existing sponsored workers during this period, provided the licence is not revoked.

How do you upgrade from a B rating back to an A rating?
To regain an A rating, the employer must successfully complete the Home Office action plan within the set timeframe, usually three months. The action plan fee is currently £1,476. If the sponsor demonstrates improved compliance, the rating will be upgraded. If it fails to comply, the licence risks suspension or revocation.

How long does an A rating last?
An A rating lasts for the duration of the sponsor licence, which is typically valid for four years. However, the rating is subject to continuous Home Office monitoring. This means that the Home Office can review and downgrade or revoke the licence at any time if it identifies breaches of compliance duties. Employers must also renew their licence before it expires to maintain sponsorship rights.

Conclusion

An A rating sponsor licence is the foundation for any UK employer wishing to recruit workers from overseas. It reflects the Home Office’s confidence that the organisation is compliant, responsible, and capable of managing sponsorship duties. The rating not only enables full use of the Sponsor Management System but also preserves the employer’s ability to assign Certificates of Sponsorship and support visa applications.

Employers must understand that holding an A rating is an ongoing responsibility. Compliance duties such as accurate record-keeping, timely reporting (usually within 10 working days), and cooperation with Home Office monitoring are not optional. Failure to maintain these standards can lead to a downgrade to B rating or even the loss of the licence altogether, with serious implications for workforce planning and business operations.

By investing in robust HR systems, training staff, and embedding compliance into everyday business practices, employers can safeguard their sponsor licence and protect their ability to recruit internationally. Sponsors must also ensure they renew their licence before the end of the four-year validity period to maintain sponsorship rights. Ultimately, maintaining an A rating is not just about meeting Home Office requirements but about building long-term resilience in a global labour market.

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