Summary
- The Sponsorship Management System (SMS) is the Home Office portal licensed sponsors use to manage sponsored workers and certificates of sponsorship.
- Employers must assign an Authorising Officer, Key Contact and system users, since incorrect SMS use is a leading cause of licence downgrades.
- Employers who breach sponsor duties risk licence suspension, revocation, civil penalties or criminal prosecution for illegal working.
- This guide explains how UK employers use the Sponsorship Management System to meet sponsor licence duties under the Immigration Rules.
- LegalVision’s business lawyers specialise in advising clients on sponsor licence compliance and UK immigration obligations.
Tips for Businesses
Assign an Authorising Officer and Key Contact immediately after licence approval, and give them SMS training within the first month. Set a quarterly diary reminder to review sponsored worker records, salary levels and reporting duties, since late or incorrect SMS entries trigger most licence downgrades
The Sponsorship Management System (SMS) is the Home Office’s online portal for licensed sponsors to manage sponsored workers, assign certificates of sponsorship and report changes under the UK Immigration Rules. Every business that sponsors workers through routes such as Skilled Worker, Global Business Mobility or International Sportsperson must use the SMS once its sponsor licence is granted. The Home Office now cross-checks SMS and payroll data against HMRC records, making incorrect entries or late reporting easier to detect. In 2025, the Home Office revoked more than 3,100 sponsor licences, the highest annual figure since records began in 2012, with adult social care, hospitality, retail and construction most affected. Therefore, this article will explain how employers can use the Sponsorship Management System (SMS).
What Is the Sponsorship Management System?
The Sponsorship Management System (SMS) is an online tool run by the Home Office. As an employer, it enables you to sponsor workers to adhere to your legal obligations under the UK Immigration Rules.
The SMS also allows you to administer your daily management activities for sponsored workers. If you need to apply for a skilled worker to help in your business, you can use the SMS for this, too. It also allows the Home Office to check that you meet your compliance obligations as a sponsor licence holder.
Do You Need to Use the Sponsor Management System?
You will need to use the Sponsorship Management System (SMS) if you sponsor workers through any of the routes used below:
- Skilled Worker;
- Charity Worker;
- Creative Worker;
- Religious Worker;
- Seasonal Worker;
- International Agreement;
- International Sportsperson;
- Global Business Mobility – Senior or Specialist Worker;
- Global Business Mobility (GBM) routes;
- T2 Minister of Religion;
- Government Authorised Exchange; or
- Scale-up
To use the SMS you must have a valid sponsorship licence. In addition, the first time you use the system, you will need to use your SMS login ID, which the Authorising Officer will receive by post. You will also need a password to be emailed to the Authorising Officer.
This factsheet outlines key developments in 2025 affecting workforce management.
Once the initial login has taken place, each person who uses the SMS from your business will have their own ID and password, which they must keep secret.
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What Are My Duties as a Licensed Sponsor?
As a licenced sponsor, you must carry out several legal duties. Typical duties carried out on the SMS include:
- monitoring specific activities;
- reporting particular activities;
- managing key personal and licence details; and
- creating, assigning and withdrawing certificates of sponsorship.
You must give key personnel in your business particular roles for the SMS. The four roles include:
- an Authorising Officer who will recruit migrant workers and make sure that you meet your duties under the SMS;
- a Key Contact, so the primary contact person for the Home Office;
- a Level 1 User who uses SMS daily; and
- a Level 2 User who also uses the SMS, but cannot do all that a Level 1 User can.
However, once logged onto the SMS, you can add more people to use it. This is done by the Level 1 User, who can create other Level 1 Users and Level 2 Users.
Reporting Deadlines Under the SMS
Licensed sponsors must report specific changes to the Home Office through the SMS within set deadlines, and missing these is one of the most common compliance failures the Home Office identifies during audits. You must report certain events within 10 working days, including a sponsored worker not starting within 28 days of the expected start date, or being absent from work without permission for more than 10 consecutive working days. You must also report changes to the worker’s job title, salary, work location or hours, since these affect whether the role still meets sponsorship requirements.
Separately, you must keep accurate records covering right to work evidence, recruitment, salary and skill level, and produce these on request during a Home Office compliance visit. The Home Office increasingly cross-references SMS entries with HMRC payroll data, so a mismatch between the salary reported on the SMS and the salary actually paid can trigger an unannounced audit. Businesses that assign clear internal ownership for SMS reporting, supported by a right to work check process, reduce the risk of a downgraded rating or licence action
“Most sponsors do not lose their licence over one big mistake. It is usually a build-up of small SMS errors, like a late report or an out-of-date salary figure, that eventually catches up with them. The Home Office is now matching SMS data against HMRC records, so gaps that used to go unnoticed get flagged automatically”
What Happens if I Do Not Use the SMS Correctly?
Despite assigning roles to key personnel information for the SMS, you, as the business owner, are responsible for complying with your sponsorship duties overall.
For example, your sponsorship rating could be downgraded. However, if you have serious shortcomings, you could:
- have the upper licence suspended;
- have your licence revoked;
- receive a civil penalty; or
- be prosecuted for criminal behaviour.
The latter two actions can occur when you allow migrants to work illegally in your business.
Key Takeaways
As a licensed sponsor sponsoring workers in your business, you must use the Sponsorship Management System (SMS). This online tool, provided by the Home Office, allows you to carry out daily activities to meet your legal duties under the UK Immigration Rules. You must use SMS if you sponsor workers through specific channels such as Skilled Workers and International Sportsperson and have a valid sponsorship licence.
There are particular duties you are legally required to carry out as a licenced sponsor, such as managing specific activities of your sponsor workers. Key personnel in your business will carry these out, although ultimately, as the business owner, it’s your responsibility to comply. You must use the SMS correctly, or you could face action from the Home Office, such as revoking your sponsorship licence.
If you need help understanding using the Sponsorship Management System (SMS) in the UK, LegalVision’s experienced employment solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
What is the Sponsorship Management System (SMS)?
The SMS is the Home Office’s online portal that licensed sponsors use to manage sponsored workers, assign certificates of sponsorship and meet reporting duties under the UK Immigration Rules.
What is an authorising officer?
The authorising officer is the person in your business responsible for recruiting migrant workers and making sure your business meets its sponsor licence duties under the SMS.
What happens if I employ someone without the right to work?
You could face a civil penalty of up to £45,000 for the first illegal worker, rising for repeat breaches, or criminal prosecution and imprisonment for knowingly employing someone illegally.
Do I need a sponsor licence to hire foreign workers?
Most UK employers need a sponsor licence before hiring foreign workers under routes such as Skilled Worker or Intra-Company Transfer, and must meet ongoing compliance duties once granted.
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