How do I apply for a Tier 2 Sponsor Licence?

Currently, you will require a Tier 2 Sponsor Licence if you wish to employ somebody who lives outside of the European Economic Area (EEA) or Switzerland to work for you in the UK. You may need to get a Sponsor Licence even if the person in question is not being remunerated; if they’re involved solely in charitable work, for example. It’s always worth remembering that sponsoring someone doesn’t automatically mean that they’ll be granted permission to come to the UK.

How does Brexit affect Tier 2 Sponsor Licences?

Though we’ve already left the European Union, much has stayed the same as we have remained in a transitional period. This comes to a close at the end of 2020 and from the 1st of January, many new rules and procedures will be introduced, especially when it comes to immigration matters. From this date, you’ll also need a Sponsor Licence to employ anyone from outside of the UK. In addition, the costs associated with obtaining a Tier 2 Sponsor Licence, the pertinent salary thresholds and the skills required are also going to change. The government has published some guidance for employers on what they will need to do going forward (https://www.gov.uk/guidance/recruiting-people-from-outside-the-uk-from-1-january-2021).

How do I get a Sponsor Licence?

The first thing you need to do is find out if your business is entitled to apply for a Sponsor LicenceSponsor Licence. If you have any unspent criminal convictions relating to immigration transgressions or any wrongdoings concerning fraud or financial concealment, or if you have any record of carrying out sponsorship obligations inadequately, you won’t be allowed to hold a Sponsor Licence. UK Visas and Immigration (UKVI) also reserve the right to visit your business once you have made a Sponsor Licence application to help them try and determine whether you are a reliable applicant who can be entrusted to fulfil the requirements of a sponsor. You may also have to demonstrate that you have, or will have, systems in place in order to monitor any employees you might sponsor.

Double-check a Tier 2 Sponsor Licence is what you require

Generally, you either apply for a Tier 2 Sponsor Licence or a Tier 5 one, but you can also request one that covers both. A Tier 5 licence is for when you are seeking to sponsor skilled workers, but only on a temporary basis. A Tier 2 licence is right for you if you are looking to recruit skilled workers for long term or permanent positions. The Home Office splits Tier 2 into the following categories:

• General - The role must meet the job suitability requirements.
• Intra-Company Transfer - This is for multinational companies which need to transfer employees to the UK.
• Minister of Religion - For people coming to work for a religious organisation (for up to 3 years).
• Sportsperson - For elite sportspeople and coaches who will be based in the UK.

What are the Job Suitability Requirements?

In order to meet the Tier 2 Sponsor Licence required for the ‘general’ category, the job you intend to offer your proposed employee normally needs to meet Regulated Qualifications Framework (RQF) level 6 or above. The government has helpfully provided a list of jobs that fit this bill (https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-j-codes-of-practice-for-skilled-work).

If the position you are filling isn’t listed on the Shortage Application List, then you have to advertise it at least twice, with adverts being up for a minimum of 28 days. This is so you can demonstrate that there are no suitable applicants within the UK already. It’s also up to you to ensure that any foreign workers can demonstrate the skills necessary to fulfil the position, for example, by retaining copies of their certificates of education.

Choose who will supervise sponsorship within the business

There are numerous roles that must be filled by paid staff in order to get your Sponsor Licence, though handily, these can all be filled by the same person. The required positions include authorising officer, key contact and level 1 user. The authorising officer is the person with overall responsibility for staff and they will need to be capable of using the Home Office’s Sponsor Management System. The key contact is simply someone who is the central point of contact for the UKVI and the level 1 user must concern themselves with all routine management regarding the Sponsor Licence. Something useful to note is that the key contact and level 1 roles can be given to a UK-based legal representative as long as they are qualified to provide immigration advice.

Bear in mind that anyone taking on any of the above-mentioned positions must be suitable to do so in the eyes of the Home Office. In practice, this means that none of the following can apply to them:

- Any unspent criminal conviction
- Received a fine from UKVI in the past 12 months
- Been reported to UKVI
- Broken any laws
- Held the position of ‘key person’ at a business that has had its Sponsor Licence revoked in the last year
- Any failings in paying VAT or any other excise duty

In addition, anyone involved in supervising the sponsorship must also be based in the UK the majority of the time, not only be employed as a contractor for a certain project, not be subject to any bankruptcy or debt relief proceedings or have any record of nonfulfillment of sponsor related obligations.

How to apply for a Tier 2 Sponsor Licence

You can apply for a Tier 2 Sponsor Licence online (https://www.gov.uk/apply-sponsor-licence). Completing the form takes around half an hour and you will need a credit or debit card to hand. Once you have filled in everything online, there will be an option to print your application. 

Generally, you need to supply a minimum of 4 documents as evidence that you are running a genuine business. There are some exemptions to this rule - if you are a public body (like a local council) or a company listed on the London Stock Exchange, for example, you will not need to provide such documents. It should be noted that supporting documents need to be originals or copies that have been certified by the issuing authority or a legal professional.

If you need any further advice, please get in touch with one of our experts on - 020 8215 1205

Costs and timescales for Tier 2 Sponsor Licences

For small or charitable sponsors, the Tier 2 fee is £536; it is more expensive for medium or large sponsors, coming in at £1,476. If you employ less than 50 people or your yearly takings are under £10.2 million, then you are normally classified as a small business. The government Business Helpdesk can assist you if you do not know which category your business is in.

80 per cent of Tier 2 sponsor applications are processed in under 8 weeks but in some cases, you can pay a supplementary charge of £500 in order to have a decision expedited and received in 10 working days. If such a route is open to you, you will be informed of this once you have submitted your application.

It’s possible you will also have to pay an extra charge for every worker you recruit from abroad. This is named the ‘Immigration skills charge’ and applies to applications for people intending to enter the country for more than 6 months on a Tier 2 general or intra-company transfer visa.

What happens once you have applied for a Tier 2 Sponsor Licence?

If you are granted a Tier 2 Sponsor Licence it will be valid for 4 years, but maintaining it will be conditional on upholding your responsibilities as a sponsor. There is no appeal process available if your application is unsuccessful, but in most cases, you can simply reapply, though there may be a minimum time limit before you are allowed to do so. You will also be given a licence rating and they are divided into categories by the Home Office.

It is really important that you comply with the Home Office rules once you have received a Tier 2 Sponsor Licence and it is imperative that you inform UKVI if anyone you sponsor is breaking the specifications of their visa, for example, by not showing up to do their job. You must also have copies of the passports and any right to work information of anyone you sponsor and keep their up-to-date contact details on record. Lastly, any major alterations to your business situation, such as insolvency, must also be conveyed to UKVI within 20 working days and our immigration solicitors can provide advice on this topic.