Are you a sponsor licence holder in the UK immigration system? Managing your sponsorship activities and ensuring compliance with UK immigration rules is critical—and that’s where the Sponsor Management System (SMS) comes in. This guide provides comprehensive instructions to help you navigate the SMS effectively, from setting up users to managing certificates of sponsorship and renewing your licence. Whether you are new to SMS or seeking to streamline your compliance, this guide covers everything you need to know.
Understanding the Sponsor Management System (SMS)

The Sponsor Management System (SMS) is an online tool provided by the UK Home Office to licensed sponsors, enabling them to manage their sponsorship licences and meet immigration compliance requirements. It serves as the official platform for assigning Certificates of Sponsorship (CoS), reporting changes related to sponsored workers, and maintaining up-to-date business information. SMS use is mandatory for sponsors across various routes, including Skilled Worker, Global Business Mobility, Religious Workers, and more. By using SMS, sponsors fulfill critical duties to prevent illegal working and support the UK’s immigration framework.
Key Personnel Roles and Access Levels
- Authorising Officer: Oversees sponsorship activities and ensures compliance. Receives official communications from the Home Office.
- Key Contact: Acts as the primary liaison between the organisation and the Home Office.
- Level 1 Users: Have full access to SMS functions, including user management and certificate assignments.
- Level 2 Users: Have limited permissions for specific tasks as assigned by Level 1 users. Assign roles carefully to maintain security and operational efficiency.
Getting Started: First-Time Login and Setup
First-time access requires your SMS login ID (sent by post to the Authorising Officer) and a password emailed to the nominated Level 1 user. Logging in successfully allows you to:
- Change your password and secure your account
- Add additional Level 1 users or create Level 2 users
- Remove former employees from the system Follow security best practices to protect your login information.
Managing Users in the Sponsor Management System
Level 1 users manage both Level 1 and Level 2 users, including:
- Requesting additional Level 1 user accounts
- Creating or removing Level 2 users
- Updating user details and permissions Proper user management ensures compliance, minimizes risks, and maintains data integrity.
Managing Your Sponsorship Licence

Within SMS, you can:
- View your licence summary, including rating and expiry
- Update business details like name, address, and contact information
- Replace Authorising Officers or key contacts as needed
- Monitor licence status for suspensions or downgrades Ensure licence details remain accurate and current to avoid compliance issues.
Assigning and Managing Certificates of Sponsorship (CoS)
A Certificate of Sponsorship is essential for sponsored workers’ visa applications. Using SMS, you can:
- Assign CoS to individual workers aligned with the correct immigration route
- Track CoS allocation quotas and usage
- Request additional CoS allocations if required
- Withdraw unneeded CoS requests Accurate CoS management supports timely visa approvals and compliance.
Tracking Licence Renewals
Renew your sponsor licence timely to maintain sponsorship privileges. SMS allows you to:
- Track the progress of your renewal application
- Submit required documentation electronically
- Renew annual CoS allocations alongside your licence
- Monitor action plans linked to compliance improvements Stay ahead of renewal deadlines to avoid disruptions.
Reporting Activities of Sponsored Workers
Sponsors must report various changes to the Home Office using SMS, typically within 10 or 20 working days. Reportable changes include:
- Job role, salary, or work location changes
- Absences or early worker terminations
- Business restructures or address changes Timely and accurate reporting plays a vital role in regulatory compliance.
Duties and Responsibilities of Licensed Sponsors

As a licensed sponsor, you must:
- Prevent illegal working by verifying and recording right-to-work checks
- Monitor sponsored workers’ adherence to visa conditions
- Assign CoS following Home Office rules
- Report required changes promptly
- Communicate and cooperate with the Home Office through SMS Fulfilling these duties helps maintain sponsor licence good standing.
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Compliance and Audit Preparation
The Home Office audits sponsors’ SMS records periodically. Prepare by:
- Keeping records accurate and up to date
- Aligning SMS data with HR and payroll systems
- Training staff on SMS usage and compliance duties
- Establishing audit trails for all sponsorship activities Proper preparation reduces audit risks and enforcement action.
Consequences of Non-Compliance
Failing to meet sponsor duties may result in:
- Licence downgrading (A-rating to B-rating)
- Temporary suspension of sponsorship privileges
- Licence revocation and loss of ability to sponsor
- Civil penalties including fines
- Criminal prosecution for illegal working Ensure compliance to protect your organisation’s reputation.
Common Mistakes to Avoid
- Assigning incorrect or expired CoS
- Late or missed reporting of key changes
- Errors in licence detail updates
- Allowing unauthorized SMS access
- Poor documentation and record-keeping Avoiding these mistakes safeguards your licence and workers.
Best Practices for Effective SMS Management
- Restrict system access to authorized personnel only
- Regularly review and update licence information
- Ensure staff are trained and aware of reporting obligations
- Synchronize SMS data with internal HR systems
- Maintain comprehensive records and audit trails Implementing these best practices optimizes compliance and operational efficiency.
Key SMS Functions and Features
The SMS platform enables:
- Assigning and managing CoS
- Requesting and tracking CoS allocation increases
- Monitoring licence renewal progress
- Reporting sponsored worker activities
- Paying for compliance action plans
- Updating licence and organisation details Leveraging these functions fully enhances sponsor licence management.
Benefits of Using SMS for Sponsors
By using SMS, sponsors benefit from:
- Streamlined licence administration
- Real-time Home Office communication
- Centralized compliance records
- Reduced administrative burdens
- Enhanced accuracy in sponsorship management SMS is indispensable for modern sponsor licence holders.
When to Seek Professional Help
Consider expert advice when:
- Managing complex CoS assignments or immigration routes
- Preparing for compliance audits or licences renewals
- Correcting SMS errors or discrepancies
- Facing enforcement actions or compliance breaches Professional support helps navigate complexities and mitigates risks.
Conclusion
The Sponsor Management System is a critical tool for licensed sponsors to manage their UK immigration obligations efficiently and compliantly. Understanding its features, responsibilities, and best practices helps protect your business and supports the UK’s immigration system. Use this guide as your starting point, and consider professional assistance for complex situations. Stay proactive with SMS to ensure smooth sponsorship management and continued licence compliance.
Frequently Asked Questions (FAQ)
1. How do I log in to the Sponsor Management System (SMS) for the first time?
Your SMS login ID will be sent by post to the Authorising Officer, and a password will be emailed to the nominated Level 1 user. Use these credentials to log in for the first time. After logging in, change your password and set up additional users as needed.
2. Who can use the Sponsor Management System?
Any organisation holding a valid UK sponsor licence can use SMS to manage sponsorship activities across routes such as Skilled Worker, Global Business Mobility, Religious Worker, and student sponsorships.
3. What are the different user roles in SMS?
- Authorising Officer: Oversees all sponsorship activities and communications with the Home Office.
- Key Contact: Main liaison for communications.
- Level 1 Users: Full SMS access, including user and licence management.
- Level 2 Users: Limited access for specific tasks.
4. How do I assign Certificates of Sponsorship (CoS)?
Log in to SMS, navigate to the CoS assignment section, and enter the details of the worker. Ensure the role and salary comply with Home Office rules before assigning the CoS.
5. How do I request additional CoS allocations?
If your initial allocation is insufficient, a Level 1 user can submit a request for an increase through SMS. Approval depends on business need and compliance history.
6. What changes must I report via SMS?
Report within 10 working days any changes such as job role, salary adjustments, absences, or early termination of sponsored workers. Other business changes like restructuring must be reported within 20 working days.
7. What happens if I fail to comply with SMS and sponsor duties?
Non-compliance can lead to licence downgrade, suspension, revocation, civil penalties, or criminal prosecution for illegal working.
8. Can I track my licence renewal application in SMS?
Yes, SMS allows you to track the progress of your licence renewal and submit required documentation electronically.