Part 1 of the sponsor guidance groups the grounds for refusing a sponsor licence into three annexes. Annex L1 lists circumstances in which the Home Office will refuse. Annex L2 lists those in which it will normally refuse. Annex L3 lists those in which it may refuse. This guide summarises them, with their letters, and explains what happens after a refusal. It describes the published grounds only; whether any of them applies to a particular organisation is a question for a regulated adviser.
Invalid is not the same as refused
An application missing mandatory documents, or without the full fee, is invalid. UKVI rejects it without considering it and refunds the fee (L3.5, L6.30). A refusal is a decision on the merits. The fee is not refunded (L6.15), and a cooling-off period usually follows.
Annex L1: the Home Office will refuse
Annex L1 has 22 grounds, lettered a to v. Among them:
- knowingly sending a false document (a)
- an unspent conviction for a relevant offence listed in Annex L4 (b)
- civil penalties for carrying clandestine entrants or passengers without documents, within 5 years of payment (c)
- a civil penalty for employing illegal workers, applying within 12 months of paying it (d)
- an unpaid civil penalty for employing illegal workers, or under the schemes in (c) (e)
- losing a previous licence through revocation, or surrendering one during compliance action, in the 12 months before applying, or 24 months after more than one (h)
- anyone falling under the guidance's definition of "you" being legally barred from acting as a company director (i)
- not being registered or licensed with a regulator when the law requires it (j)
- not sending requested documents or information within the time limit (k)
- UKVI not being satisfied the organisation can offer work meeting the definition of an eligible role (l)
- no processes and systems to meet sponsor duties, for example internal communications too weak to know if a worker has not turned up (n)
- intending to supply sponsored workers to a third party as labour (o)
- no operating or trading presence in the UK, except on the UK Expansion Worker route (p)
- the application being sent by a representative (r)
- failing to nominate an Authorising Officer and a Level 1 User who meet the requirements (s)
- a refusal in the last 6 months, subject to exceptions (t)
- applying as an individual who is not a sole trader (u)
- reasonable grounds to suspect the organisation exists mainly to bring in someone who would not otherwise have permission to work in the UK (v)
Where an organisation fully meets the requirements for some routes but not others, it is licensed only for the routes it meets (Annex L1, m).
Annex L2: the Home Office will normally refuse
Annex L2 covers circumstances that will normally lead to refusal, including:
- a false statement, or withholding information held, from the Home Office or any other government department (a)
- an unspent conviction for an offence outside Annex L4 that is relevant to sponsor duties or suitability (b)
- two or more civil penalties for employing illegal workers in the 5 years before applying (c)
- unpaid legal costs owed to the Home Office (e)
- having been key personnel at an organisation whose licence ended through revocation in the last 12 months, or whose application was refused in the last 6 months (f)
- employing someone without permission to do the work, where right to work checks were not done properly (g)
- UK or UN sanctions (h)
- behaviour not conducive to the public good (i)
- otherwise posing a risk to immigration control (j)
- failing to co-operate with a compliance check (k)
- intending to sponsor workers in a personal capacity (l)
The annex adds that previous non-compliance may also lead to refusal, depending on how serious and how recent it was and what has changed since.
Annex L3: the Home Office may refuse
Annex L3 lists circumstances UKVI will consider. It says that generally it will not refuse on one alone, but may depending on gravity, and the more that are present the more likely refusal is. They include a record of poor compliance with sponsor duties (a), not providing evidence when asked about a linked organisation (b), loss of authorisation to give immigration advice (c), VAT or duty penalties (d), other relevant civil penalties (e), and a warning notice for employing illegal workers in the previous 5 years (f).
Refusals after a compliance check
If UKVI carries out a compliance check before deciding, it rates the organisation "met" or "not met" against human resources systems, convictions and civil penalties, migrant compliance and employment criteria (L8.23). If significant doubts remain after the check, refusal is likely (L8.22).
What happens after a refusal
UKVI writes to the Authorising Officer with the reasons (L9.1, L9.2). There is no right of appeal. If the refusal came from a caseworker error, or from evidence sent but not considered, an error correction request can be made within 14 calendar days. UKVI aims to reply within 28 working days. The process is not a full reconsideration and does not accept evidence that was not available at the time (L9.8 to L9.10).
Cooling-off periods
Section L9 sets how long must pass before a new application can succeed. The main periods are:
- no cooling-off period where the only reasons were a representative sending the application, missing a deadline for reasons outside the applicant's control, or not being a qualifying Scale-up sponsor
- 6 months after most other refusals
- 12 months after a first revocation, and 24 months after more than one
- 12 months after paying a civil penalty for employing an illegal worker in full
- until a relevant conviction is spent
Where more than one period applies, the longest wins (L9.18). An application made during a cooling-off period is refused automatically (L9.16).
Common questions
Is the licence fee refunded after a refusal?
No. Part 1 (L6.15) says the fee pays for consideration and is not refunded if the application is refused.
Can we just apply again straight away?
Usually not. Most refusals carry a 6-month cooling-off period, and Annex L1 (t) refuses applications made within 6 months of a refusal, subject to the listed exceptions.
Can we appeal?
No. The only route is an error correction request within 14 calendar days, and only for caseworker error or evidence that was not considered.
Where can we read what sponsors must do once licensed?
The compliance checklist lists sponsor duties with their guidance references, and the role checker shows the published rules for each occupation code.