Hiring a worker for your UK handyman company: when and how you have to apply for a UK Sponsor Licence

The UK currently has almost 200,000 handyman businesses. Many of these are sole traders. Yet, hiring workers from abroad could be the perfect way for you to scale up.

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Getting legal support to help apply for a UK sponsor licence for business owners could be your pathway to accessing skilled foreign labour.

Why Your Business Might Need a Sponsor Licence

If you hire a worker from overseas, they will often need to successfully apply for a visa to come to the UK legally. Many visa types, such as the Skilled Worker visa, require sponsorship. Your business will need a valid sponsor licence to assign your prospective foreign workers with the certificates of sponsorship they need.

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Sponsor licences come in two types: Worker and Temporary Worker. You can apply for one type or both, whichever is most relevant for your business needs.

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The types of visas most likely to be needed for your handyman business requiring a Worker licence include the Skilled Worker visa and the Senior or Specialist Worker visa. Meanwhile, the Seasonal Worker visa requires a Temporary Worker sponsor licence and could be relevant for your business.

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Not all UK businesses can apply for a sponsor licence. You can apply once your business is genuine, has an effective HR system, has no history of failing in its sponsorship duties or unspent criminal convictions for financial crimes, and has no key personnel who are a threat to the UK immigration system.

Making a Sponsor Licence Application

To get a sponsor licence, you’ll need to successfully complete the four-step application process detailed below:

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1. Check that your business meets the eligibility criteria and is not disqualified by it or its employees’ history.
2. Determine the type of sponsor licence your business requires based on the visa types that your foreign hires will need.
3. Nominate trusted management staff members to manage your company’s sponsor licence processes. At least two individuals will need access to the sponsor management system (SMS).
4. Complete the online application by filling out the form and uploading your supporting documentation, then pay the application fee to submit it.

The exact application fee your business must pay will vary based on its size and the type of licence you are applying for. The cost is £611 to £1,682 for a Worker sponsor licence or both types, and a Temporary Worker licence always costs £611. Small businesses and charities pay the lowest fees.

A Successful Application Requires Documentation

For UKVI to approve your UK sponsor licence application, you’ll need to show your business is eligible through accurate and valid documentation and information. The exact documentation needed may vary depending on the nature of your business. However, you can usually expect to need some of the following, detailed below:

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• Information on your business’s organisation, including its hierarchy.
• Proof of your business’ registration with HMRC and national insurance.
• Proof of your ownership or control of the business.
• Financial accounts showing active business operations and that your company meets its tax obligations.
• Copies of any goods and services contracts over the past 12 months.
• Your VAT registration certificate.
• Financial Conduct Authority (FCA) liability insurance certificates.
• Proof that you have legal access to your business premise.

All of this documentation, and any other forms required, will need to be submitted within five days of making your application. Usually, only original or certified documents will be accepted.

What Happens After a Successful Application?

After you successfully apply for a sponsor licence UK, you can start to hire foreign workers and assign certificates of sponsorship so that they can successfully apply for a visa. You will need to maintain your sponsorship responsibilities, as only A-rated sponsor licence holders can access the full benefits. The duties of a sponsor licence holder are listed below:

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• Ensure your business maintains UK immigration law and employment law compliance. You will need to accept announced and unannounced UK Visas and Immigration (UKVI) visits to prove this.
• Properly manage sponsor licence and HR systems.
• Make sure any of your foreign hires are properly qualified for their role in your business, and only assign certificates of sponsorship to appropriate candidates.
• Inform UKVI when your foreign workers’ circumstances change.
• Check that your foreign workers have the right to work in the UK.
• Maintain comprehensive documentation. Personal documents of your foreign workers need to be kept confidential.

The fact that the Home Office has the power to make unannounced visits means that you and your HR team will need to remain constantly vigilant and compliant. The Home Office also uses data-led monitoring to spot potential compliance breaches without needing to visit your premises.

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You will also need to assign workers within your business to sponsor licence management roles through the sponsorship management system (SMS). Your authorising officer ensures compliance. The key contact serves as your business’s interface with UKVI. Finally, Level 1 and Level 2 users deal with regular administrative tasks, with the former having greater access and responsibilities.

Assigning Certicates of Sponsorship

With a valid sponsor licence and the necessary procedures in place, you can start welcoming the most talented foreign workers into your handyman business. These workers will need you to assign them a certificate of sponsorship.

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There are two types of certificate of sponsorship (CoS). Defined CoS are given to Skilled Worker visa hopefuls who are applying from outside the UK. You’ll need to request and receive UKVI approval before assigning these CoS.

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Things are more relaxed with undefined CoS. Your business will receive an annual allocation of undefined CoS, and you are welcome to use them however you like. However, these CoS can only be used for non-Skilled Worker routes and Skilled Worker visa applications made from inside the UK, which occurs when the foreign hire is switching from a different visa type.