Sponsor Licence Renewals: What Changed and What You Still Need to Do

In a major shift to sponsorship rules, the UK government has removed the requirement for most employers to renew their sponsor licence every four years. Licences due to expire on or after 6 April 2024 have now been automatically extended for 10 years - with no action required by the sponsor.

Sounds like a win - but don’t let your guard down. While the renewal process may be gone, your compliance responsibilities are very much still in play.

This guide explains what’s changed, what the exceptions are, and what sponsors still need to do to stay on the right side of the Home Office.

1️⃣ What Changed in April 2024?

Previously, sponsor licences were granted for four years, and employers had to:

• Apply for renewal before the licence expired

• Pay a renewal fee

• Undergo compliance checks as part of that renewal

From 6 April 2024, the Home Office:

• Removed the renewal requirement for most sponsors

• Extended existing licences by 10 years (if they were due to expire on or after 6 April 2024)

• Stopped charging renewal fees

• Updated the Sponsorship Management System (SMS) to remove the ‘renew licence’ function

💡 imminova Tip:Check your SMS dashboard. If your licence expiry was after 6 April 2024, you’ll likely see an extended expiry date already. If not, contact the Home Office to clarify — and document any correspondence.

2️⃣ Who Still Needs to Renew Their Licence?

Not every licence is covered by the automatic 10-year extension. Exceptions include:

• UK Expansion Worker route sponsors: typically granted a short-term licence to establish a UK presence, subject to reassessment.

• Scale-up route sponsors: licences last 4 years, with no renewal option beyond that.

• Licences that expired before 6 April 2024: still subject to the previous renewal system.

💡 imminova Tip:Route-specific rules matter. If you operate under Expansion or Scale-up, set reminders early. There’s no second chance to extend a Scale-up licence once it lapses.

3️⃣ How to Check Your Licence Expiry Date

It’s your responsibility to keep track of your licence validity. To check:

• Log into the SMS

• Go to ‘Licence Summary’

• Check the expiry date listed there

Note that some expiry dates may not have been updated promptly after the policy change.

💡 imminova Tip:We recommend diarising your sponsor licence expiry date, even if it’s a decade away - alongside annual compliance reviews. Don’t let it gather dust.

4️⃣ Can Your Licence Be Revoked or Suspended Before It Expires?

Yes. Even if your licence is valid for 10 years, the Home Office can revoke, suspend or downgrade it at any time if you're not compliant.

Common reasons for enforcement action include:

• Failing to report worker or organisational changes via SMS

• Not maintaining required records

• Employing workers in jobs that don’t meet visa criteria

• Providing misleading or inaccurate information

💡 imminova Tip: A 10-year licence isn’t a 10-year guarantee. Treat your sponsor status like a live audit - always be ready to demonstrate full compliance.

5️⃣ Compliance Responsibilities Haven’t Changed

The renewal requirement may have been scrapped, but your duties as a sponsor remain exactly the same.

You must still:

🔹 Keep accurate records for each sponsored worker (contracts, right to work checks, contact details, etc.)

🔹 Report changes (e.g. job titles, salaries, work locations) via SMS within required timeframes

🔹 Keep your licence details up to date (e.g. Authorising Officer or Level 1 User changes)

🔹 Cooperate fully with Home Office visits or audits

🔹 Ensure roles you sponsor meet the skill and salary thresholds

🔹 Only assign Certificates of Sponsorship (CoS) for genuine roles

💡 imminova Tip: Many sponsors get caught out not by big breaches - but small oversights (like failing to report a location change or letting contact details go out of date). A regular internal compliance calendar is your best defence.

6️⃣ Common Misunderstandings - Cleared Up

❌ "Licence renewal doesn’t exist anymore, so I can relax."

🔁 False. The renewal process is gone, but compliance is still monitored - and your licence can still be revoked.

❌ "All licences now last 10 years."

🔁 False. Some routes (Scale-up, Expansion) follow different rules. Always check your specific guidance.

❌ "No need to log into SMS anymore."

🔁 False. You must still use SMS for reporting, managing personnel, and reviewing CoS allocations.

💡 imminova Tip: Stay subscribed to Home Office alerts via SMS. You won’t always get email notifications - and missing an update can mean missing your reporting window.

Final Thoughts

The scrapping of four-year licence renewals is a welcome administrative relief - but it doesn’t reduce your risk if you fall out of step with your sponsor duties.

The Home Office is now relying more than ever on real-time compliance monitoring, unannounced visits, and system intelligence.

Keep your records sharp, your SMS account active, and your internal processes tight.

🔍 Need a compliance audit or want to automate licence tracking? imminova’s platform and expert compliance team keep your licence - and your business - in good standing.