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Using the Sponsor Management System (SMS): HR Best Practices

4
min read
Last updated
March 26, 2026
Sponsor Management System (SMS): HR Best PracticesSponsor Management System (SMS): HR Best Practices
Key TakeAways

• The SMS is the Home Office portal all licensed UK sponsors must use - for CoS, reporting, and compliance records.

• Worker changes (role, salary, location, absences >4 weeks) must be reported within 10 working days.

• Physical BRPs are phased out. All right-to-work checks must use eVisa share codes from 31 December 2026.

• Non-compliance risks range from B-rating downgrade to licence revocation and £60,000 civil penalties.

• Managing 10+ sponsored workers? See our dedicated guide on Managing multiple sponsored workers.

The UK Sponsor Management System - the SMS - is the Home Office's online portal that every licensed employer must use to run their sponsorship programme. It is where you issue Certificates of Sponsorship (CoS), report changes in worker circumstances, and maintain the compliance records UKVI can inspect at any time. With nearly 2,000 licences revoked in 2024–25, the stakes for getting it right are higher than ever.

SMS user roles: Who does what

Every SMS user needs their own login -sharing credentials is a compliance violation the Home Office actively checks for.

Role Responsibilities Key Requirement
Authorising Officer Overall licence accountability. Signs off compliance. Senior paid employee (director-level). UK-based.
Key Contact Receives all Home Office correspondence. Same eligibility as AO. Can be the same person.
Level 1 User Day-to-day operations: assigns CoS, reports changes, updates records. UK-based. No unspent criminal convictions.
Level 2 User View-only access. Cannot independently assign CoS. Used for junior HR staff needing visibility.

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Remove SMS access immediately when a user leaves or changes role. Dormant accounts with active permissions are flagged during compliance audits.

Reporting deadlines for SMS

Missed deadlines are the single most common cause of licence downgrade. There is no grace period.

What Happened Report Within
Worker changes role, salary, or work location 10 working days
Worker absent more than 4 consecutive weeks (non-statutory) 10 working days from when the 4-week mark is reached
Worker leaves — resignation, dismissal, or end of contract 10 working days
Company name, address, or key personnel changes 20 working days
Merger, acquisition, or new branch opens or closes 20 working days

Set HRIS alerts that fire automatically when a sponsored worker's record is changed - do not rely on manual tracking.

Issuing a Certificate of Sponsorship

A CoS formally links a worker to their visa application. Errors here are a leading cause of visa refusals

Type Used For Requires HO Pre-Approval? 2026 Fee
Defined CoS Workers applying from outside the UK Yes — request allocation first £525
Undefined CoS In-country switches and extensions No — assign immediately £525

Before assigning any CoS, confirm: The job maps to an eligible SOC code, salary meets the 2026 threshold (£41,700 for most Skilled Worker roles, or the going rate if higher), and the role meets RQF Level 6 requirements.

The eVisa deadline: What must change by 31 December 2026

Physical Biometric Residence Permits (BRPs) are being phased out entirely. From 31 December 2026, all right-to-work checks must be carried out via eVisa share codes through UKVI online accounts.

  • Help every sponsored worker set up their UKVI online account at onboarding - not at visa renewal time.
  • eVisa share codes expire after 90 days. Build a recurring re-verification schedule.
  • Train all Level 1 Users on the online right-to-work checking service before the year-end deadline.
  • For new visa applications from January 2026 onwards, only eVisas are issued - no BRP cards.

What Happens If Employer Breach Sponsor Licence Rules?

Breach Consequence
Minor or first-time breach B-rating downgrade — cannot issue new CoS until restored (typically 3–6 months)
Repeated or serious breach Licence suspension — no new CoS, existing workers' visas at risk
Severe or fraudulent breach Licence revocation — 24-month cooling-off before re-application
Worker employed with lapsed visa Civil penalty up to £60,000 per worker

Conclusion

By implementing best practices-leveraging technology, conducting audits, training staff, and preparing for the eVisa transition-teams can ensure compliance, avoid penalties, and support seamless international hiring. Proactive SMS management aligns with stricter 2025 regulations, safeguarding operations and enabling workforce mobility.


Disclaimer

Immigration laws and policies change frequently and may vary by country or nationality. While we strive to provide accurate and up-to-date information, we recommend doing your own due diligence or consulting official sources. You are also welcome to contact us directly for the latest guidance. Jobbatical is not responsible for decisions made based on the information provided.

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