Sponsor licence revocations at an all-time high

Although we witnessed some record-breaking numbers throughout 2025, this recent figure is not only unprecedented, but it is more than 1,000% higher than the 2012 to 2024 quarterly average.

Why are so many sponsor licences being revoked?

Alongside greater scrutiny of sponsor licence holders throughout 2025, it appears the Home Office also sent a significant number of compliance check emails to sponsors towards the end of the year.

In these emails, the Home Office advises that it is looking into concerns suggesting that sponsored workers are not receiving a salary that matches their Certificate of Sponsorship (CoS). 

To assess the position, the email requires sponsors to provide a number of documents, including payslips and P60s for all sponsored workers, payroll reports showing gross and net pay and National Insurance and tax deductions, and business bank statements showing sponsored workers’ net salary payments.

Failure to alleviate the Home Office’s concerns can lead to the revocation of the sponsor licence.

Given the unprecedented rise in sponsor licence revocations, coupled with an uptick in sponsor compliance emails, we wonder whether there is a link here, namely whether inadequate responses to sponsor compliance emails have led to a remarkable increase in sponsor licence revocations.

What should sponsor licence holders do?

When responding to a compliance check email, we recommend following the three steps below.

1. Respond within the deadline
   It is crucial to respond within the deadline. If this is not possible, an email should be sent to the Home Office before the deadline requesting an extension and explaining the reasons why the deadline cannot be met.
2. Send all requested documents
   It is crucial to ensure all documents requested are provided to the Home Office. Failure to provide all requested documents could lead the Home Office to conclude that the sponsor has not cooperated with the check, which is a ground for revocation.
3. Address issues or discrepancies
   It is crucial to ensure all documents and details are thoroughly reviewed before being sent to the Home Office to identify any potential issues or discrepancies. Even with robust sponsor compliance systems in place, mistakes, oversights and mishaps can happen. If this is the case, it will be necessary to provide the Home Office with a clear explanation, supported by documents if required, to alleviate any concerns.

Specialist immigration advice

It cannot be stressed enough how important it is to ensure that a response to a compliance check email demonstrates adherence to sponsor duties.

In such circumstances, it may be advisable to seek specialist immigration assistance to review the documents and details, identify potential issues and prepare the necessary submissions to adequately alleviate the Home Office’s concerns.

In our experience of dealing with compliance checks, we have witnessed several common issues that, if left unaddressed, would likely have led to the revocation of the sponsor licence. However, by addressing the issues in detail and providing robust documentary evidence, the Home Office’s concerns were alleviated and our clients were able to continue operating as normal.

It is also worth noting that the Home Office has recently indicated that from 8 April 2026 there will be closer monitoring of HMRC records to assess whether sponsored workers are being paid in line with their CoS. From this date, sponsored workers must be paid the required amount in each pay period, subject to some permitted exceptions. Failure to do so could lead to more compliance check emails and, without appropriate responses, higher numbers of sponsor licence revocations.

If you have any queries related to sponsor licence compliance, feel free to contact us.