Sponsor licence revoked with immediate effect for salary breach
A UK business recently had its sponsor licence revoked with immediate effect after failing to pay a sponsored worker the salary stated on their Certificate of Sponsorship. The case highlights the Home Office’s tough stance on sponsor compliance.
Saskia Johnston ● Sep 3, 2025
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The business was given no right of appeal and cannot apply for another licence for at least 12 months. This means it cannot sponsor new workers and risks losing existing sponsored staff.
Once a sponsor licence is revoked, all sponsored employees usually have 60 days to either leave the UK or find another sponsor. The consequences can be severe for both the business and the staff.
While this case did not involve one of our clients, it serves as an important reminder of all the risks UK sponsors face if compliance is not managed carefully.
Rising sponsor licence revocations in the UK
The Home Office has been cracking down on sponsor compliance breaches. Revocations jumped 350% between 2023 and 2024, from 336 to 1,514, with over a third in London. The numbers are likely to increase further, highlighting the importance for all businesses that hire overseas talent to stay compliant.
Case study: Salary underpayment leads to licence revocation
In this case, the company had employed a Business Development Executive for two years on a salary of £30,000 per year, around £2,500 per month.
HMRC data revealed the employee was being paid less than the amount on their Certificate of Sponsorship (CoS). For three consecutive months, net pay was only £600, £915, and £1,220.
The employer explained this was an administrative error in recording the worker’s hours. They confirmed the full monthly salary has been paid since then, and any outstanding payments will be corrected following an updated RTI report.
The company apologised and promised to follow UKVI policies for Skilled Worker visa holders going forward. They also said delays in reporting changes through the SMS portal were due to being new to the system, but all future updates would be submitted on time.
Home Office response
The Home Office acknowledged the plan to repay the underpayments but stated this did not count as proper compliance, since the payments were only arranged after concerns were raised. As a result, the licence was revoked.
Key compliance points
- Sponsorship is a privilege, not a right: Sponsors are trusted to follow immigration and UK law and to act responsibly.
- Responsibility to workers: Skilled Worker visa holders cannot access public funds and rely entirely on their salary. Sponsors must safeguard their welfare.
- Serious breaches: The Home Office considered downgrading the licence or issuing an action plan, but concluded the breaches were too serious.
- Effect of revocation: From the date of revocation, the company cannot sponsor new workers or issue CoS, though it may still hire UK nationals and non-EEA or EEA nationals who already have the right to work in the UK.
- Cooling-off period: Businesses cannot apply for a new sponsor licence for at least 12 months, except if the licence was revoked in error and later reinstated.
How to protect your business
This case shows how even a single breach can have serious consequences for a business. Now is the time to arrange a mock UKVI audit, which can help identify potential issues before an official visit, such as unreported changes on your SMS portal or incomplete HR files, giving you the chance to resolve them proactively.