Sponsor licences used to need renewing. They no longer do. This guide explains what the Home Office guidance says about how long a licence lasts, the exceptions, and what can still bring a licence to an end. It uses Part 1 and Part 3 of the sponsor guidance (both version 08/26, valid from 28 August 2026) and GOV.UK's overview for employers.
It explains the published rules. It does not assess any organisation's licence. Speak to a regulated adviser about your circumstances.
Renewal has ended
Part 3 says: "The requirement to renew your sponsor licence every 4 years was removed on 6 April 2024" (section C5).
Part 1 now says a licence "will be valid indefinitely, unless we revoke it or you surrender it" (L3.8). GOV.UK's overview puts it this way: a licence "usually stays valid for as long as you continue to meet the eligibility requirements".
So there is no renewal application and no renewal fee for most sponsors.
The four-year exceptions
Two routes still have a time limit. A licence on the UK Expansion Worker route or the Scale-up route lasts at most 4 years (Part 1, L3.8; Part 3, C5). GOV.UK adds that you cannot apply for another licence to sponsor these types of workers.
Part 1 also says a UK Expansion Worker sponsor must normally set up a UK trading presence, and apply to add at least one other route, within 2 years of the grant (L3.9). Otherwise the Home Office will review whether it still meets the route's requirements, and may revoke the licence.
The sponsorship management system (SMS) shows the licence expiry date for Scale-up and UK Expansion Worker licences (L10.3).
What still ends a licence
An indefinite licence is not a permanent one. It can end in three ways (Part 3, C1.8):
- the sponsor surrenders it
- the Home Office makes it dormant, for example after a takeover
- the licence ends through revocation
Part 1 says the Home Office continually monitors sponsors and makes regular checks with HMRC (L3.11). It reserves the right to act against a sponsor it believes poses a risk to immigration control (L3.8). GOV.UK's overview adds that you may lose your licence if you do not meet your responsibilities as a sponsor.
Our guides on compliance visits, B-ratings, suspension and revocation explain those steps.
Inactive licences
The register of sponsors is meant for organisations that actively use their licence, Part 3 says (C5). The Home Office says it will publish more guidance on managing inactive licences in a future update. Meanwhile, sponsors not currently sponsoring anyone can surrender the licence (C5 and C6).
Inactive SMS users
A related rule does apply now. Part 1 treats an SMS user account as inactive if it has not been used for 12 months or more (L4.72). If the Home Office finds inactive users, it contacts the Authorising Officer and any inactive Level 1 User (L4.73). They then have 3 months to log in and check their details (L4.74).
If nobody acts, the accounts are deactivated (L4.77). If that leaves no active Level 1 User, the licence is suspended and the sponsor has 28 days to nominate one. Otherwise the Home Office will normally revoke the licence (L4.78). A revocation for this reason alone carries no cooling-off period (L4.79).
Part 1 recommends that a Level 1 User logs in at least once a month (L10.4).
Other current changes to Key Personnel
Part 1 records two changes that affect licence holders now:
- From 9 September 2026 no new Level 2 Users can be appointed. Existing Level 2 Users must be upgraded to Level 1, where eligible, or deactivated by 8 March 2027 (L4.4).
- Mandatory multi-factor authentication for SMS users is being phased in from 3 September 2026 (L4.67). Sponsors must keep each Level 1 User's mobile number, email address and date of birth correct (L4.84).
Surrendering a licence
You can surrender if you no longer wish to sponsor and have no sponsored workers (C6.1). The Home Office then removes your entry, so you no longer appear on the register (C6.2). There is no refund of the licence fee (C6.3). You can apply again at any time, unless you surrendered while compliance action was under way. In that case a cooling-off period applies (C6.6 and C6.7).
The current application fees are £611 for small or charitable sponsors and £1,682 for medium or large sponsors (Worker licence, GOV.UK, 3 Oct 2026). Most applications are decided in under 8 weeks, GOV.UK says. The cost calculator shows the full costs.
Common questions
Do we need to renew our sponsor licence?
Not under the current guidance, unless it is a Scale-up or UK Expansion Worker licence. Part 3 says renewal was removed on 6 April 2024 (C5).
Our licence used to show an expiry date. What happens now?
Part 1 says licences are valid indefinitely unless surrendered or ended through revocation (L3.8). The SMS shows an expiry date only for Scale-up and UK Expansion Worker licences (L10.3).
Can an unused licence be taken away?
Part 3 says further guidance on inactive licences will follow (C5). Separately, inactive SMS user accounts can put a licence at risk (Part 1, L4.72 to L4.79).
How do we check our entry on the register?
Use our sponsor licence check to see what the register currently lists.