Sponsor Licence Downgrades, Suspensions & Revocations: What Employers Need to Know

Holding a sponsor licence comes with serious responsibilities - and getting it wrong can lead to enforcement action by the Home Office, including downgrading, suspension, or revocation of your licence altogether.

In this comprehensive guide, we break down:

• What each type of Home Office action means

• What triggers a downgrade, suspension, or revocation

• How to recover your A-rating or prevent enforcement entirely

• How imminova’s smart compliance tools can protect your licence

1️⃣ What Is a Sponsor Licence Rating?

When your organisation is approved as a sponsor, you’re granted an A-rating - the highest rating issued by UKVI. This confirms that you’ve demonstrated the ability to meet your legal sponsorship duties.

You’ll appear on the public Register of Licensed Sponsors and have full access to issue Certificates of Sponsorship (CoS) for roles you’re approved to sponsor.

There is one exception: organisations using the UK Expansion Worker route are granted a provisional rating initially. After the Authorising Officer (AO) arrives in the UK and activates the licence, it becomes A-rated.

2️⃣ What Is a B-Rating - and Why Does It Matter?

If UKVI believes you’re falling short on your sponsor duties, they can downgrade your licence to a B-rating. You’ll still be allowed to employ existing sponsored workers and assign CoS for extensions, but you won’t be able to sponsor new hires.

You’ll be given a time-limited action plan to correct the issues — at your own cost — or risk further sanctions.

Downgrade triggers include:

• Failing a UKVI compliance visit

• Inadequate record-keeping

• Not reporting worker or business changes in the Sponsorship Management System (SMS)

• Not responding to UKVI correspondence

• Assigning CoS for ineligible roles

3️⃣ What Happens After a Downgrade?

If you’re downgraded:

• You’ll receive a notification from the Home Office outlining the reasons

• You’ll be offered a sponsorship action plan and required to pay a £1,579 fee within 10 working days

• You’ll have 3 months to implement improvements

• You must not sponsor new workers until your licence is upgraded again

At the end of the action plan, UKVI will reassess your licence. There are three possible outcomes:

Outcome	What Happens
✅ Licence restored	You met all action plan requirements. Your A-rating is reinstated.
⚠️ Second action plan	Further issues were found; you pay another £1,579 for a second plan.
❌ Licence revoked	Serious issues or non-compliance results in licence removal.

4️⃣ What Are Your Options If Downgraded?

When notified of a downgrade, you can:

Option	What You Can Do
✅ Accept	Pay £1,579 within 10 working days and complete the action plan
❌ Decline	Surrender your licence if you’re not sponsoring anyone
⚠️ Do nothing	Your licence will be revoked

5️⃣ Suspensions: When UKVI Hits Pause

Suspension is more serious than a downgrade. UKVI may suspend your licence without prior downgrade if they believe your actions pose a risk to immigration control.

Triggers include:

• Employing workers illegally

• Assigning CoS to roles that don’t meet eligibility or salary thresholds

• Providing false or misleading information to UKVI

• Failing to co-operate with site visits or audits

During a suspension:

• You cannot sponsor new workers or assign CoS

• You must respond within 20 working days with representations and evidence

• UKVI will assess whether to reinstate, downgrade or revoke your licence

6️⃣ Licence Revocation: The Worst-Case Scenario

A revocation is permanent (for at least 12 months) and has serious consequences for both your business and any sponsored workers.

Common causes of licence revocation:

• Repeated non-compliance (e.g. two failed action plans)

• Serious or systemic breaches (e.g. employing workers without valid visas)

• Failing to pay the action plan fee on time

• Ignoring UKVI requests or correspondence

Consequences:

• Your organisation will be removed from the sponsor register

• All sponsored employees' visas will be curtailed, typically within 60 days

• You’ll have to wait 12 months before reapplying — and there’s no guarantee of approval

7️⃣ How to Avoid Sponsor Licence Downgrades & Revocations

Compliance isn’t just about paperwork - it’s about building systems that support sustainable sponsorship.

To protect your A-rating:

✅ Keep accurate records of employment, addresses, absences, visa expiry dates

✅ Report changes in worker details or job roles within required timeframes

✅ Review job descriptions and ensure roles meet salary and eligibility rules

✅ Respond to UKVI in full and on time - even if you’re unsure

✅ Train your HR team on sponsor responsibilities

💡 imminova makes it easier. Our compliance platform: ✨Automatically detects risk areas in your worker profiles ✨Tracks visa expiry and CoS limits ✨Reminds you of follow-up checks (e.g. List B repeat checks) ✨Provides audit support and readiness reviews ✨Offers on-demand expert guidance from regulated advisors

8️⃣ FAQs

How many times can I be downgraded to a B-rating?

A maximum of two times. A third breach will result in automatic revocation.

Can I still hire someone while downgraded?

Only if they are already employed and extending. You cannot sponsor new hires while B-rated.

Can I appeal a downgrade or revocation?

There is no formal appeal route. You may submit representations when notified, but once revoked, you must wait 12 months to reapply.

Final Thoughts: Prevention Beats Cure

Downgrades and revocations can be disruptive, reputationally damaging and expensive. But most are avoidable with the right systems, training, and expert oversight.

imminova is here to keep your sponsor licence - and your workforce - secure.

🟢 Need help with a downgrade or action plan?

🟢 Want an audit before UKVI pays a visit?

🟢 Looking to protect your licence long-term?

📩 Get in touch with our compliance team today - and stay confidently A-rated.