Holding a sponsor licence means reporting changes on time, keeping records inspection-ready and managing Certificates of Sponsorship correctly, every month. Our retainer takes that day-to-day work off your HR team, with our immigration advisers acting as your Key Contact and an additional Level 1 User on the Sponsorship Management System.
Ongoing SMS management and sponsor compliance support for licensed employers.
Reviewed by Morgan Smith Immigration · IAA-regulated UK immigration advisers · Last reviewed
TL;DR
An SMS and sponsor compliance retainer is ongoing support from immigration advisers who help run your Sponsorship Management System (SMS) and sponsor duties. The Home Office expects most changes to sponsored workers to be reported within 10 working days, and since 3 September 2026 every SMS user must log in with multi-factor authentication. A UK-based representative can act as your Key Contact and as an additional Level 1 User, but never as your Authorising Officer or your only Level 1 User.
£525
CoS fee per Skilled Worker (paid by the sponsor)
10 working days
To report most sponsored worker changes
12 months
Inactivity before SMS accounts are removed
What is an SMS and Sponsor Compliance Retainer?
A sponsor licence comes with continuing duties. You must report changes to sponsored workers and to your organisation through the SMS within set deadlines, keep the records listed in Appendix D, assign Certificates of Sponsorship (CoS) correctly and make sure every sponsored worker is paid and employed as stated. Missing these duties is one of the most common reasons sponsors are downgraded to a B-rating.
The Home Office allows a UK-based representative to be appointed to two Key Personnel roles: Key Contact, and an additional Level 1 User once the licence has been granted. Under our retainer, our advisers take these roles alongside your own team. Your Authorising Officer stays inside your organisation, as the guidance requires, and you keep at least one Level 1 User of your own.
The SMS has changed in 2026. Multi-factor authentication has been mandatory for SMS users since 3 September 2026, Level 2 Users can no longer be appointed and the role will be abolished after 8 March 2027, and accounts that are not used for 12 months will be deactivated. If a sponsor is left with no active Level 1 User, the licence is suspended. The retainer keeps your user set-up current through these changes.
What the Retainer Covers
The ongoing duties that keep a sponsor licence A-rated
📄
Reporting and CoS Management
We report changes to sponsored workers within 10 working days and changes to your organisation within 20 working days, and we prepare, check and assign Certificates of Sponsorship, including allocation requests.
💼
Key Personnel and SMS Access
We act as your Key Contact and an additional Level 1 User, keep Key Personnel details, mobile numbers and dates of birth current for multi-factor authentication, and manage the move from Level 2 Users before 8 March 2027.
£
Records and Inspection Readiness
We keep each sponsored worker’s file aligned with Appendix D and with what the CoS states, track visa expiry dates and right to work follow-up checks, and flag salary or role changes that need reporting.
What You Can and Cannot Do
What our advisers can and cannot do on your SMS
✓ You Can
- Hand over routine SMS reporting to advisers who track every deadline
- Keep your own Level 1 User while our advisers act as an additional one
- Get CoS checked before assignment so job codes, salaries and dates are right first time
- Stay ahead of SMS changes such as multi-factor authentication and the end of Level 2 Users
- Prepare for compliance visits with records kept inspection-ready all year
✗ You Cannot
- Appoint us as your Authorising Officer: this must be a senior person within your organisation
- Make us your only Level 1 User: you must keep at least one Level 1 User of your own
- Appoint a representative as Level 1 User at application stage: this can only happen after the licence is granted
- Pass sponsorship costs to workers: the CoS fee and the Immigration Skills Charge must be paid by the sponsor
- Transfer legal responsibility: sponsor duties remain with your organisation
Costs & Fees
Current fees as of 2026. Set by the Home Office — subject to change.
Fees set by the Home Office and subject to change. Last reviewed: October 2026.
| Item | Cost (2026) |
|---|---|
| Retainer by our advisers | Monthly fee, quoted after a scoping call |
| Certificate of Sponsorship (Skilled Worker) | £525 |
| Certificate of Sponsorship (Temporary Worker) | £55 |
| Immigration Skills Charge, first 12 months | £480 / £1,320 |
| Sponsor action plan if B-rated | £1,579 |
How the Retainer Works
Five steps to hand over day-to-day SMS management
Scoping Call
We review your licence, number of sponsored workers, current Key Personnel and how your HR team handles reporting today.
Compliance Baseline
We check sponsored worker files and SMS history to find any unreported changes or record gaps before we take over.
Key Personnel Set-Up
Your Level 1 User adds our adviser as an additional Level 1 User and Key Contact, with multi-factor authentication details in place.
Monthly Management
We report changes, assign CoS, track expiry dates and send you a short monthly compliance summary.
Ongoing Readiness
Your licence stays inspection-ready throughout the year, with support if the Home Office contacts you.
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Sources
Legal information on this page is based on guidance from GOV.UK, the UK Home Office / UK Visas and Immigration, legislation.gov.uk, and Free Movement. Rules change frequently — speak to our team to confirm current requirements.
Frequently Asked Questions
Common questions about the Sponsorship Management System and sponsor duties
What is the Sponsorship Management System (SMS)?
The SMS is the Home Office online system licensed sponsors use to assign Certificates of Sponsorship, report changes to sponsored workers and their organisation, and manage their licence. Access is through named Key Personnel accounts.
Can an immigration adviser be a Level 1 User on our sponsor licence?
Yes. A UK-based representative can be appointed as an additional Level 1 User after the licence is granted, and as your Key Contact. They cannot be your Authorising Officer or your only Level 1 User, and cannot be a Level 1 User at the application stage.
What changes must be reported on the SMS within 10 working days?
Most changes to a sponsored worker’s circumstances, including a worker not starting within 28 days, unauthorised absence of more than 10 consecutive working days, a salary reduction, a change of work location and the end of sponsorship. Most changes to your organisation must be reported within 20 working days.
Is multi-factor authentication mandatory on the SMS?
Yes. Multi-factor authentication has been mandatory for SMS users since 3 September 2026. Sponsors must keep a current email address for every SMS user, and a current mobile number and correct date of birth for Level 1 Users.
What is happening to Level 2 Users on the SMS?
Level 2 Users could not be appointed from 9 September 2026. Existing Level 2 Users must be upgraded to Level 1 Users, if eligible, or deactivated by 8 March 2027, after which the Home Office will deactivate any that remain.
What happens if our SMS accounts are inactive?
An account not used for 12 months is treated as inactive. Users have 3 months from the Home Office’s contact to log in and check their details. If no active Level 1 User remains, the licence is suspended and you have 28 days to nominate one before it is normally revoked.
Who pays the Certificate of Sponsorship fee?
The sponsor pays it. The Certificate of Sponsorship fee is £525 for a Skilled Worker and £55 for Temporary Worker routes, and sponsors must not pass this cost, or the Immigration Skills Charge, on to the worker.
What records must a sponsor keep for each sponsored worker?
Appendix D of the sponsor guidance lists the documents you must keep for each sponsored worker and for how long. They can be paper or electronic, and you must provide them to the Home Office when asked.
What happens if we miss a sponsor reporting deadline?
Missing reporting duties is a breach of your sponsor duties. Depending on how serious it is, the Home Office may downgrade your licence to a B-rating with a £1,579 action plan, suspend it, or revoke it.
Do we still need our own HR team if we use a compliance retainer?
Yes. Your organisation keeps legal responsibility for sponsorship and must have its own Authorising Officer and at least one Level 1 User. The retainer supports your team with reporting, CoS management and record keeping rather than replacing it.
Hand Over Your SMS Reporting
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