Summary
- The Home Office can check your HR systems, worker records and sponsor duties through announced or unannounced compliance visits.
- Sponsored roles must meet eligibility requirements, and your records should accurately reflect each employee’s duties, salary and working arrangements.
- The 2026 guidance changes cover SMS access, eligible roles and compliance decisions, alongside an expanded right to work regime.
- This article explains sponsor licence audit preparation and practical compliance checks for UK employers.
- LegalVision’s lawyers advise employers on sponsor audits, reporting changes and maintaining sponsored worker records.
Tips for Businesses
Ask a colleague to test how quickly your team can retrieve a sponsored worker’s records. Record gaps, assign responsibility and set internal completion dates. Check that another authorised person can locate documents when the usual licence administrator is absent. Speak to an immigration lawyer at LegalVision about preparing your business for a sponsor compliance visit.
A Home Office sponsor licence compliance audit checks whether a UK employer meets its sponsorship duties. The Home Office may review HR systems, sponsored worker records, salary payments and reporting history. Employers should prepare for announced or unannounced visits by maintaining accurate records and ensuring key personnel understand their responsibilities. A practice audit can help employers identify gaps before a compliance visit.
This article explains sponsor audit preparation, the 2026 guidance changes and how to test your compliance processes through a practice audit.
What is a Home Office Compliance Audit?
The Home Office generally refers to these audits as compliance checks or compliance visits. It may carry out a check before or after granting a sponsor licence, with or without notice. The Home Office may check that your organisation genuinely operates in the UK, has appropriate HR and recruitment systems, and meets its sponsor duties. It may review whether you complete and retain appropriate right-to-work checks, maintain the required records and report relevant changes on time. It may also check that you pay sponsored workers correctly and that you sponsor them in genuine, eligible roles.
What Has Changed in 2026?
Review the 2026 updates to the sponsor guidance and reflect them in your compliance processes.
1. Greater Focus on ‘Eligible Roles’
In March 2026, the Home Office introduced the term ‘eligible role’ into its sponsor guidance. You should be able to show that each sponsored position is genuine and appropriate for your organisation.
Consider whether:
- the role genuinely exists;
- the job description accurately reflects the employee’s work;
- the occupation code is appropriate;
- the salary and working hours remain compliant; and
- the role makes sense for your organisation’s business model, size and activities.
2. Reasonable Suspicion of Non-Compliance
The March 2026 guidance also clarified the Home Office’s approach to the burden of proof in sponsor licence decisions. The guidance confirms that the Home Office may take action where there is a reasonable suspicion of non-compliance.
Keep clear records showing how your business fulfils its sponsor duties. The Home Office may question a sponsored role, salary, recruitment decision or another aspect of your licence. You should be able to provide records explaining what happened and why.
3. Mandatory Multi-Factor Authentication for SMS Users
From 3 September 2026, the Home Office began introducing mandatory multi-factor authentication for Sponsorship Management System users. The Sponsorship Management System is also known as SMS.
Keep your SMS users’ personal and contact details accurate and up to date so they can continue accessing their accounts. Avoid sharing SMS login credentials. Limit SMS access to authorised individuals.
4. Review SMS User Access
Review who has access to your Sponsorship Management System and whether each person still needs an account. Check that users meet the requirements for their assigned role and deactivate accounts you no longer need.
5. Inactive SMS User Accounts
The Home Office has also introduced a process for dealing with inactive SMS user accounts. Review your SMS users regularly and limit access to appropriate individuals.
The updated guidance warns that you may put your licence at risk if you fail to take required action on inactive users. Include SMS account management in your regular sponsor compliance reviews. Check user access between Certificate of Sponsorship assignments as well.
6. Right to Work Changes From 1 October 2026
The right-to-work regime will expand from 1 October 2026.
The expanded regime will cover certain working arrangements beyond traditional employment. These include individuals who work:
- under a worker’s contract;
- as individual subcontractors; and
- through certain online matching services.
The changes also introduce extended liability in certain contractual arrangements. Review whether these changes affect your business if you use subcontractors, temporary staffing arrangements, platforms or other non-traditional workforce models.
“An audit tests how your business works in practice, not just whether you have a folder of documents. Asking a colleague to trace a sponsored employee’s records can expose gaps that the person managing the licence no longer notices.”
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How Should You Prepare for a Home Office Compliance Audit?
Review your worker files, payroll records and reporting processes to prepare for a compliance check. Your key personnel should also understand their responsibilities.
Review Your Sponsored Worker Files
Check that each sponsored worker file contains the documents you must retain.
These may include:
- right to work evidence;
- employment contracts;
- job descriptions;
- contact information;
- salary and payroll information;
- attendance and absence records;
- qualifications or professional registrations where relevant; and
- documents required under the sponsor record-keeping rules.
Keep your records complete, accurate and easy to find. Make sure the people responsible for your sponsor licence know where to find each document.
Compare the Certificate of Sponsorship Against the Actual Role
Check that the information you gave the Home Office still matches the employee’s actual role.
Review the employee’s:
- job title;
- occupation code;
- day-to-day duties;
- salary;
- working hours; and
- work location.
If the employee’s role has changed significantly since you sponsored them, consider whether you need to report the change or take other immigration action.
Planning to sponsor a worker from overseas? Download our free guide to sponsor licences, visa routes and your ongoing sponsor duties.
Review Salary and Payroll Records
Make sure your immigration, HR and payroll records match. Confirm that:
- you pay the employee the correct salary;
- their recorded hours remain accurate;
- payslips reflect the agreed salary;
- you can provide evidence of salary payments;
- you have considered any unpaid absences; and
- you have assessed salary changes against immigration requirements.
Review sponsorship requirements before relying on your payroll team’s approval of a change.
Check Your SMS Reporting History
You have reporting responsibilities when certain changes occur.
These can include changes relating to:
- a sponsored worker’s employment;
- salary or working arrangements;
- work location;
- company details;
- key personnel;
- business structure; and
- mergers, acquisitions or other organisational changes.
Review your SMS history periodically to check that you have submitted relevant reports within the required timescales.
Review Your Right-to-Work Procedures
Include right-to-work checks in your wider HR processes.
Make sure your team knows:
- who completes right-to-work checks;
- when checks must take place;
- where to store evidence;
- how to monitor visa expiry dates;
- when to complete required follow-up checks; and
- who makes sure everyone follows the process.
Prepare for the expanded right-to-work regime taking effect on 1 October 2026.
Make Sure Your Key Personnel Understand Their Sponsor Duties
Your Authorising Officer and Level 1 Users should understand how the sponsor licence operates.
They should be able to explain:
- who your organisation sponsors;
- how your organisation monitors sponsored workers;
- how your organisation records absences;
- who is responsible for reporting changes;
- how your organisation manages right-to-work checks; and
- where your organisation keeps sponsorship records.
What Happens if the Home Office Finds a Problem?
If your business does not meet its sponsor duties, the Home Office may take action against your licence. Depending on the circumstances, the Home Office may downgrade, suspend or revoke your licence. The sponsor guidance covers actions to take when sponsors breach their duties or when the Home Office suspects a breach. Losing your licence can affect your ability to recruit overseas workers. It can also affect the immigration status of employees you already sponsor. If your business relies on international talent, include sponsor compliance in your ongoing risk management.
Key Takeaways
Review your compliance processes against the Home Office’s 2026 sponsor guidance changes. Check that sponsored positions meet the eligible role definition and keep evidence to address any Home Office concerns. Prepare SMS users for mandatory multi-factor authentication, review existing Level 2 Users before their removal, and regularly check inactive accounts. Prepare for the expanded right-to-work regime from 1 October 2026. Audit sponsored workers’ files, salaries, and reporting records, and ensure key personnel understand their sponsor duties. Keep your records and processes ready for review throughout your licence by carrying out regular checks before the Home Office announces a visit.
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Frequently Asked Questions
Can the Home Office visit my business without notice?
Yes. The Home Office can conduct announced or unannounced compliance visits before or after granting a sponsor licence. Officers may examine your records and HR systems and interview key personnel or sponsored employees.
What documents should I prepare for a sponsor licence audit?
Prepare right-to-work evidence, employment contracts, job descriptions, contact details, payroll information and absence records. Include relevant qualifications or professional registrations and any other documents the sponsor’s record-keeping rules require. Make sure the people responsible for your licence can find the records.
What should I check if a sponsored employee’s role changes?
Compare the employee’s actual duties, salary, hours and work location against their Certificate of Sponsorship. If the role has changed significantly, assess whether you need to report the change to the Home Office or take other immigration action.
What happens if the Home Office identifies sponsor compliance problems?
The Home Office may downgrade, suspend or revoke your sponsor licence, depending on the circumstances. Losing your licence can affect your ability to recruit overseas workers and the immigration status of employees you already sponsor.
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