Sponsor Licence Renewal Fee | DavidsonMorris

Sponsor licences are granted for a interval of 4 years. To keep up permission to rent non-UK resident staff previous the four-year mark, sponsors must make a sponsor licence renewal software.

Beneath the UK immigration system, employers who shouldn’t have a sound sponsor licence can be unable to rent new expert staff from both EU or non-EEA nations, or prolong work permits for present sponsored staff.

To resume the sponsor licence, the organisation might want to submit an software via the Sponsorship Administration System and pay the related sponsor licence renewal payment.

How a lot is the sponsor licence renewal payment?

The licence renewal payment will range relying on the dimensions and turnover of your organisation. A reduced fee applies for charities and small organisations. It’s important that you simply pay the proper payment or your renewal software can be rejected.

To find out an organisation’s classification, the Firms Act 2006 definition of a small firm is used. To qualify as a small firm, the organisation should meet not less than two of the next situations:

• Annual turnover have to be no more than £10.2 million
• The steadiness sheet complete have to be no more than £5.1 million
• The typical variety of staff have to be no more than 50

The place these standards don’t apply, the organisation ought to pay the medium or massive sponsor payment.

Sponsor licence renewal course of

As soon as the renewal has been submitted on the SMS and the related payment has been paid, the Residence Workplace will course of the appliance in two levels; validation checks and the overview stage.

In the course of the validation, the caseworker will verify the standing of the prevailing sponsor licence, eg whether or not it’s A rated or topic to an motion, and verify there are not any points with the renewal software which might lead to a rejection, equivalent to failing to submit extra paperwork in time.

The overview stage considerations checks that can be carried out to confirm continued eligibility for the licence, together with checks towards nominated key personnel and the organisation itself, that it operates legally within the UK, continues to be appropriate to be a licensed sponsor and is ready to meet the compliance duties.

Typically, this can contain checking Firms Home information to substantiate proceed operations within the UK, and checking the organisation’s SMS – together with the data contained in regards to the organisation, its sponsored staff and Certificates of Sponsorship which have been issued.

The place the Residence Workplace requires additional particulars, it could request additional info or documentation from the organisation. The organisation normally has 5 days to reply.

In some instances, the sponsor might solely be topic to the ‘streamlined licence renewal’. This is applicable the place the sponsor has renewed their licence on two earlier events and been granted their renewals with none compliance breaches or points. The streamlined course of means the next won’t be checked as a part of the renewal:

• Firm & insolvency checks
• Certificates of sponsorship allocations
• Licence construction
• Website inspection historical past
• Excellent change requests
• Threat profiles
• Accreditation and registration particulars, until the sponsor is working within the Training or Human Well being and Social Work Actions sectors
• ‘Different buying and selling checks’
• Compliance go to referral
• Document a overview consequence in case actions in Metastorm or
• Subject a choice letter

When do you have to renew the licence?

The renewal software ought to at all times be made earlier than the present licence expires. Sponsors can normally apply to resume as much as three months earlier than their present licence is because of expire.

This can assist to keep away from disrupting your permission to sponsor staff and to keep away from curtailment points along with your sponsored staff’ immigration standing. This also needs to enable for time to take corrective motion (equivalent to making a brand new software), ought to the appliance be rejected.

The Residence Workplace ought to write to sponsors 120 calendar days previous to the expiry date as a reminder to resume, with an additional communication at 30-day intervals as much as the final month with a closing reminder two weeks earlier than the expiry date. It’s due to this fact crucial that the contact particulars on the SMS are updated in order that the communications are acquired by the related personnel.

If the licence is left to run out earlier than a renewal software is made or is granted, numerous points can ensue. All staff sponsored underneath the licence will not be lawfully employed and as such can be in breach of their visa necessities. This implies their depart can be curtailed they usually might want to depart the nation inside 60 days (or sooner if their depart expires earlier than then) until they will safe permission to stay by, for instance, discovering a brand new sponsor.

Your choices with an expired licence – whether or not you can also make an pressing software to resume or if you will want to use for a brand new licence – will depend upon the circumstances. Taking skilled recommendation will assist to make sure you proceed with essentially the most acceptable plan of action to your wants.

Widespread grounds for a refused renewal software 

Sponsors ought to put together to be put underneath larger scrutiny underneath the renewal software than with the preliminary licence software. Having operated with a licence for 4 years, the Residence Workplace expects that the organisation has managed its licence to the required requirements, and can use the renewal software stage as the chance to confirm compliance and ensure that there was no abuse of the sponsorship course of.

This could embody finishing up a mock immigration audit to assist establish potential areas of danger and non-compliance which can give grounds for a refused software. Addressing these points earlier than you renew may help to optimise your possibilities of being granted the licence for an additional 4 years.

The fact, nevertheless, is that not all sponsor licence holders are in a position to present that they’ve continued to fulfill the necessities. Some employers have just one sponsored employee and the forms round managing the licence falls off the enterprise’ radar, whereas for different organisations, notably bigger employers, there could also be poor or inconsistent inside HR practices that are in breach of the licence duties.

Widespread causes for renewal functions failing embody:

• Cost of the wrong licence renewal software payment
• Failing to fulfill sponsor compliance obligations
• Poor record-keeping
• Failing to report the required modifications referring to migrant staff or the organisation, or reporting modifications out of time
• Failing to cooperate with the Residence Workplace and never responding to communications
• Uncared for to substantiate real vacancies earlier than providing employment to a migrant employee

In addition to risking a failed renewal software, the above grounds are additionally trigger for enforcement motion equivalent to downgrading, suspending or revoking the sponsor licence. The underlying requirement is that licence compliance varieties a part of the employer’s on a regular basis actions, via efficient HR programs and key personnel able to performing their duties.

Put up-licence Residence Workplace inspections 

The place there are considerations about non-compliance, the assigned caseworker might refer the for a compliance go to, with a choice on the renewal software can be made after the inspection.

In the course of the inspection, Residence Workplace officers will collect additional info and paperwork and may conduct interviews with sponsored staff and key personnel throughout the organisation.

Website inspections may be carried out with or with out discover. Given the scrutiny that comes with a website inspection, sponsors are suggested to be ready for a go to earlier than submitting their renewal software. This implies if the Residence Workplace attends your premises, you might be ready to offer the required info to proof compliance and assist your renewal software.

Compliance points recognized throughout a website inspection may give grounds to refusing the renewal software.

Want help?

DavidsonMorris’ specialist UK immigration legal professionals have particular experience in sponsor licence renewal functions and supporting sponsors with auditing their immigration compliance and making certain they’re ‘match match’ for Residence Workplace scrutiny. For recommendation and steerage with making ready your organisation for a licence renewal, contact us.

Sponsor licence renewal payment FAQs

Final up to date: 30 August 2021