Can I deduct sponsorship fees from an employee's salary?

The Home Office strictly prohibits this. Doing so can lead to the immediate cancellation of your license.

Does the license need to be renewed every 4 years?

Most licenses issued or active after April 2024 have been automatically extended to 10 years . However, this does not mean inspections will decrease.

What happens if I receive a B rating?

You will be issued an Action Plan (costing £1,476). You will not be able to sponsor new workers until you rectify the identified issues.

2026 UK Employer Sponsorship Responsibilities: The Complete Compliance Guide

Are you ready for the “Digital-First” era of UK immigration? As we enter 2026, the Home Office has tightened its oversight of UK Employer Sponsorship Responsibilities. Civil penalties for illegal working have now reached £60,000 per worker, and the transition to eVisas is complete. Consequently, complying with regulations is no longer just an HR task—it is essential for business survival.

In this guide, we cover UKVI reporting duties, the new B2 English language rules, and the record-keeping habits that will keep your Sponsor License secure in 2026.

1. Core Compliance and Reporting: Essential Duties

In 2026, the Sponsorship Management System (SMS) remains the foundation of your compliance. The Home Office requires “real-time” information. Delays in reporting are the primary cause of license suspensions.

Reporting Time Limits:

10-Day Rule: You must report any change in a sponsored worker’s circumstances (e.g., leaving the job, failing to show up on the first day, or a change in job title) within 10 working days.
20-Day Rule: Any business changes (e.g., change of ownership, address, or business name) must be reported within 20 working days.
Absence Monitoring: If a worker is absent for 10 consecutive days without notification, it must be reported.

Pro-Tip: Your Authorizing Officer (AO) bears legal responsibility. Ensure they conduct quarterly SMS checks to maintain an A-rating.

2. New 2026 Salary and Skill Thresholds

The definition of a “skilled worker” has changed significantly. In 2026, the focus is entirely on higher-salaried and high-skill roles.

B2 English Language Changes: As of January 8, 2026, the English language requirement for new Skilled Worker candidates has been raised from B1 to B2 (equivalent to A-Level). This means you must verify their B2 certificate before issuing a Certificate of Sponsorship (CoS).

3. The Digital Era: eVisas and Right to Work Checks

By 2026, old plastic BRP cards will have been phased out. Everything is now digital.

eVisa Verification: Every sponsored worker must have a UKVI account.
Share Codes: You must use the worker’s Share Code to conduct an online “Right to Work Check.”
Statutory Excuse: To avoid heavy fines, keep a digital or printed copy of this online check. Simply checking a passport is no longer sufficient.

Also Read:Healthcare Insurance for Work Visa Holders in USA (2026)

4. Unannounced Compliance Visits (Sudden Inspections)

The Home Office has increased its enforcement budget for 2026. Surprise visits are now common in the tech, hospitality, and construction sectors.

How to stay audit-ready:

Genuine Vacancy Test: Can you prove the job actually exists? Keep copies of original advertisements and interview notes.
Immigration Skills Charge (ISC): Ensure you have paid the updated levy (which increased by 32% in late 2025).
SOC 2020 Codes: Ensure job descriptions align with the new SOC 2020 framework. Using outdated codes can lead to immediate license revocation.

5. (FAQs): UK Employer Sponsorship Responsibilities 2026

Can I deduct sponsorship fees from an employee’s salary?
The Home Office strictly prohibits this. Doing so can lead to the immediate cancellation of your license.
Does the license need to be renewed every 4 years?
Most licenses issued or active after April 2024 have been automatically extended to 10 years. However, this does not mean inspections will decrease.
What happens if I receive a B rating?
You will be issued an Action Plan (costing £1,476). You will not be able to sponsor new workers until you rectify the identified issues.

Essential Tasks for HR Managers

Audit staff salaries to ensure they meet the £41,700 threshold.
Update recruitment policies to include the B2 English requirement.
Verify that all staff have successfully transitioned to eVisas.

Disclaimer: This article is for informational and educational purposes only. Readers are advised to verify details from official sources, such as the GOV.UK website, or consult an expert before making any business or legal decisions.