Skilled Worker Visa Sponsorship: Common Mistakes Employers Make & How to Avoid Them

Hiring overseas talent can help UK businesses fill skill gaps, but sponsoring a Skilled Worker Visa comes with strict rules. Many employers unknowingly make mistakes that lead to visa refusals, delays, or even losing their sponsor licence.

If your business plans to sponsor skilled workers, avoiding compliance pitfalls is crucial. In this guide, we’ll cover:

Top mistakes UK employers make when sponsoring Skilled Worker Visas
How to avoid refusals, delays, and compliance penalties
Key sponsorship rules every employer must follow
How to retain your Sponsor Licence & stay compliant

Let’s get started! 

1. Failing to Meet Sponsor Licence Requirements

Mistake: Applying for a sponsor licence without meeting UKVI requirements

Before sponsoring skilled workers, businesses must apply for a Sponsor Licence. However, many applications get rejected due to:

Missing or incorrect supporting documents
Lack of HR systems to track visa compliance

 Incomplete or rushed applications

How to Avoid This Mistake

Ensure your company is legally registered with Companies House
Provide accurate supporting documents (business registration, bank statements, tax records) Set up an HR system to monitor sponsored workers

Tip: Read the UK Home Office Sponsor Guidance before applying to ensure full compliance.

2. Not Offering a Salary That Meets UKVI Requirements

Mistake: Offering a salary below the Skilled Worker Visa minimum threshold

From April 2024, the minimum salary threshold increased to:

 £38,700 per year (or £15.31 per hour)
£30,960 per year for shortage occupations
£29,000 per year for health & care workers

If an employer offers less than these amounts, the visa application will be refused.

How to Avoid This Mistake

Check the latest salary thresholds before offering a job
Use the Shortage Occupation List to qualify for lower salary thresholds
Include bonuses or allowances (if permitted) to meet salary requirements

Tip: If the role doesn’t meet salary criteria, consider hiring Graduate Visa holders who don’t need sponsorship for two years.

3. Assigning a Certificate of Sponsorship (CoS) Incorrectly

Mistake: Employers issue the CoS without proper checks

A Certificate of Sponsorship (CoS) is a unique reference number required for the visa application. Common mistakes include:

Issuing a CoS for an ineligible job role
Providing incorrect job details (salary, duties, start date)
Assigning a CoS before getting Sponsor Licence approval

How to Avoid This Mistake

 Use the UKVI Skilled Worker Eligible Occupation List before assigning a CoS
Double-check the job details, salary, and contract terms before submitting
Ensure the CoS is issued after your Sponsor Licence is approved

Tip: Incorrect CoS details can lead to visa refusals and wasted fees, so review all information carefully.

4. Failing to Carry Out Right-to-Work Checks

Mistake: Not verifying an employee’s work eligibility before hiring

Even if an employee has a visa, employers must conduct a right-to-work check before they start work. Failing to do so can result in:

 Fines of up to £20,000 per illegal worker
Sponsor Licence suspension or revocation
Legal action from the UK Home Office

How to Avoid This Mistake

 Use the UK Government Right-to-Work Checking Service
Keep copies of all visa and work permit documents
Regularly monitor visa expiry dates to avoid employing overstayers

 Tip: Set calendar reminders for visa renewal deadlines to ensure compliance.

5. Not Keeping Proper Records for Sponsored Workers

Mistake: Poor HR record-keeping leading to compliance failures

UKVI requires businesses to maintain accurate records of all sponsored workers. Many employers fail to:

 Keep copies of employment contracts & job descriptions
Record visa expiry dates & right-to-work documents
Report employee absences or resignations to UKVI

How to Avoid This Mistake

 Maintain a digital HR system to track employee records
Report any changes in employment status to UKVI within 10 working days
Conduct internal compliance audits to check documentation

 Tip: Non-compliance can lead to Sponsor Licence revocation, so regular audits are essential.

6. Failing to Report Changes to the UK Home Office

Mistake: Not informing UKVI of important job or sponsorship changes

Employers must report changes to a sponsored worker’s employment within 10 working days. This includes:

 Job title or salary changes
Sponsored employee leaving the job
Business relocations or mergers

How to Avoid This Mistake

 Assign a dedicated compliance officer to track all updates
Use the Sponsorship Management System (SMS) to report changes
Keep records of all reported updates for future audits

 Tip: Failure to report changes can lead to sponsorship withdrawal, affecting future hiring plans.

7. Misunderstanding Immigration Skills Charge (ISC) & Fees

Mistake: Not budgeting for visa sponsorship costs

Employers must pay various fees when sponsoring skilled workers, including:

 Sponsor Licence Fee: £536 (small business) or £1,476 (large business)
Certificate of Sponsorship (CoS): £199 per worker
Immigration Skills Charge (ISC): £364 (small business) or £1,000 (large business) per year

Many employers fail to budget for these costs, leading to delays in hiring.

How to Avoid This Mistake

 Plan your sponsorship budget before recruiting international workers
Check if shortage occupation roles qualify for reduced fees
Offer a competitive salary package to attract skilled candidates

 Tip: Some businesses offer relocation assistance to attract top international talent.

8. Ignoring Sponsor Licence Renewals & Compliance Audits

Mistake: Allowing the Sponsor Licence to expire

A Sponsor Licence is valid for 4 years, and if it expires, employers:

 Cannot sponsor new skilled workers
Risk losing current sponsored employees
May have to reapply and restart the process

How to Avoid This Mistake

 Set up reminders for licence renewal at least 6 months before expiry
Conduct internal compliance checks before UKVI audits
Keep all required employee records up to date

 Tip: If your licence is revoked, you may be banned from hiring foreign workers for years.

Final Thoughts – How Employers Can Successfully Sponsor Skilled Workers

Sponsoring Skilled Worker Visas can help UK businesses attract top talent, but employers must follow Home Office rules carefully to avoid fines, delays, or licence revocation.

 Key Takeaways for Employers:

 Ensure your business qualifies before applying for a Sponsor Licence
Offer salaries that meet the Skilled Worker Visa thresholds
Issue Certificates of Sponsorship (CoS) accurately
Conduct right-to-work checks & maintain proper records
Report job changes, visa expirations, and resignations to UKVI
Stay compliant with sponsorship rules to avoid penalties

 Need help with Skilled Worker Visa sponsorship? Contact an immigration specialist today!