Key takeaways
Sponsor licence compliance is a business-critical obligation
Organisations must actively manage their sponsor duties to avoid enforcement action.
Effective audit preparation goes beyond paperwork
UKVI expects well-structured processes, accurate records, and staff who understand their compliance responsibilities.
Licence breaches can disrupt operations
Non-compliance may lead to suspension or revocation with serious business consequences.
Are you ready for the rising wave of UKVI compliance audits? In recent months, we’ve seen a sharp increase in sponsor licence revocations and heightened scrutiny across the immigration landscape. The message is clear: sponsor compliance is no longer a box-ticking exercise, it’s a strategic priority. The latest Home Office data (January to June 2025) reveals that 1,256 sponsor licences were suspended. This is a stark reminder of the consequences of non-compliance. This therefore reinforces what you need to hear: managing your licence is not optional and compliance must be treated as a core business function.
As a sponsor licence holder, meeting your duties requires more than just knowing the Immigration Rules. It demands time, resources and a proactive approach to ensure your organisation remains compliant. Understanding how to manage your licence effectively and knowing when action is required, is essential to avoid allegations of non-compliance.
The Home Office continues to expand its powers to investigate suspected breaches of sponsor duties. This includes unannounced site visits, sophisticated digital audits and tighter deadlines. Compliance checks now go beyond surface-level reviews and includes cross-referencing with HMRC to verify salary accuracy is becoming more routine. Sponsors are expected to demonstrate that their HR systems are sufficiently robust to support ongoing compliance and withstand scrutiny during audits.
What to expect during a UKVI compliance audit?
During a UKVI compliance visit, the Home Office will carry out a range of checks to assess whether your organisation is meeting its sponsor duties. This can include verifying information provided in your initial licence application, inspecting your business premises, reviewing your HR systems and records.
The Home Office auditors will almost always interview a mix of sponsored, non-sponsored and settled workers, and your staff involved in recruitment onboarding, payroll etc. They may also conduct checks that you are preventing illegal working and carry out checks on individuals associated with your organisation, including those in positions of responsibility beyond your Key Personnel.
Your guide
The below table sets out your key responsibilities, why they matter and how Hill Dickinson’s Business Immigration team can support you in staying audit ready.
Actions | Why it matters | How can our Business Immigration team help? |
|---|---|---|
Conduct regular mock audits | Regular internal audits help identify gaps in processes, documentation, and reporting that could lead to non-compliance. | We offer a range of Sponsor Compliance Review services which range from light-touch “health checks” to comprehensive mock audits that closely mirror a UKVI compliance visit. These reviews assess whether your systems meet each of the core sponsor duties. As part of the audit, we can conduct practice interviews with Key Personnel and a selection of sponsored and non-sponsored employees, helping you prepare for the types of questions UKVI may ask. Following the review, we provide our, practical recommendations for improvement. |
Maintain accurate records | This is one of your sponsor duties and you must retain specified documents for each sponsored worker, including right to work checks, contracts and absence records. | Our team can also provide a tailored Sponsor Compliance checklist, setting out exactly which documents must be retained in each sponsored employee’s file. We also advise on: How to structure files for audit-readiness What records must be kept and for how long Best practices for maintaining electronic or paper records Ensuring documents are readily accessible for inspection |
Ensure timely reporting of changes during a sponsored worker’s lifecycle and organisational changes. | Reporting duties are a core part of your sponsor obligations. You must notify via the SMS, specific changes to a sponsored worker’s circumstances and organisational changes, including mergers and changes in ownership. | We can help you implement robust systems to manage reporting duties effectively and stay ahead of compliance risks. We offer: Clear guidance on what to report, when to report it, and what information is required to report the change. Designing/Reviewing policies and processes to ensure changes during a sponsored employee’s lifecycle (such as job description, work location, resignations, unauthorised absences etc) are reported within Home Office deadlines. Advisory support on organisational changes, including mergers, takeovers, changes in ownership, and updates to Key Personnel. Remedial advice where changes haven’t been reported on time, helping you demonstrate good faith in case of future UKVI scrutiny. Staff training delivered annually, monthly, or in modular format and practical guidance to help teams identify reportable changes, understand timelines, and ensure timely internal notifications for UKVI submissions. |
Ensure sponsored workers are qualified, roles are genuine, visa conditions are met, and reporting is accurate and timely | Prevents illegal working, protects your sponsor licence, and ensures compliance with UKVI regulations. | In addition to our Sponsor Compliance Review services, we also offer: Right to Work audits a targeted review of right-to-work checks with a written summary and recommended remedial actions. Tailored advice including how to evidence genuine vacancies, selecting appropriate (SOC) occupation codes, and assessing route sponsorship eligibility. |
Comply with wider UK law, including employment regulations, licensing, statutory registrations, DBS checks, safeguarding, and sanctions | You also have a duty to comply with wider UK law (beyond immigration), which is essential for lawful operation and maintaining your sponsor licence. | Where wider UK legal duties apply, we work seamlessly with our colleagues in Employment, Regulatory and Corporate law to deliver an integrated, holistic and cross-practice support. This ensures your organisation remains compliant, protected and well-advised across all relevant legal areas. |
Conclusion: Turning compliance into confidence
With audits becoming more frequent, you must move away from reactive fixes and embed compliance into your day-to-day operations. By investing in robust systems, regular reviews and expert legal support, you can protect your sponsor licence and build confidence in your organisation’s ability to meet Home Office expectations.
Hill Dickinson’s Business Immigration team are here to support you every step of the way, ensuring your organisation is not only audit-ready, but resilient, informed and well-prepared for the evolving compliance landscape.
