Can a Sole Trader Apply for a Sponsor Licence in the UK?

Last updated: 10 April 2024

If you are a sole trader legally trading in the UK, you can apply for a sponsor licence if you wish to sponsor someone to work in your business. As a sole trader, you can sponsor an overseas candidate as long as they have an eligible job.

Under the Skilled Worker visa route, the list of eligible occupations includes senior positions such as Chief executives, directors, and managers, in addition to a wide range of other skilled roles in all sectors. In this article, we will explain the sponsor licence requirements for sole traders in the UK.

Sponsor licence requirements for sole traders

To apply for a sponsor licence as a sole trader in the UK, you will need to demonstrate to UK Visas and Immigration (UKVI) that you meet the following criteria:

• Your sole trader business has a UK presence, and it is operating legally in the UK.
• You plan to sponsor individuals to work in your sole trader business (i.e. you are not sponsoring yourself) for genuine eligible roles¹ . A sole trader is a self-employed person who owns and runs their own business but can employ others to work within their business.
• You can pay salaries to sponsored workers that meet or exceed the minimum requirements. For the UK Skilled Worker visa, at least £38,700 per year, or the ‘going rate’ for the role.
• You do not have any unspent criminal convictions for immigration offences or other relevant offences (e.g. fraud or money laundering).
• You have not had a sponsor licence revoked in the last 12 months.
• Your business has the necessary HR systems and processes in place to manage your sponsored workers and meet your sponsorship duties.

Sole traders can sometimes run into difficulties when applying for a sponsor licence in terms of proving that their business has the appropriate HR systems in place to manage sponsored workers and they can meet their sponsorship duties and obligations. There may also be difficulties in proving that they have a genuine business, there is a genuine need to hire overseas workers in the UK (and hence for a sponsor licence) and that they can meet the minimum salary requirements. As such, robust immigration law expertise is beneficial in ensuring that any challenges associated with applying for a sponsor licence as a sole trader are overcome.

For assistance with ensuring that your sole trader sponsor licence is approved, please speak to our professional immigration team on 020 3744 2797 or complete our enquiry form.

Required documents for sponsor licence application as sole traders

Essential to making a successful sponsor licence application as a UK sole trader is supplying all of the required documents to UKVI. UKVI will scrutinise each document provided to ensure that your business meets the criteria for a sponsor licence.

A full list of documents² that may be required for sponsor licence applications can be found on the Home Office website. In most cases, you must send a minimum of 4 documents, which may include:

• Covering letter explaining your company background including, why are you applying for a sponsor licence, what sector you operate in, and your opening/operating hours
• Hierarchy chart
• Details of the jobs you intend to sponsor overseas workers for including:
  • which jobs are currently vacant, and for which you intend to assign a CoS
  • job title and occupation code
  • duties
  • where the job sits on your hierarchy chart
  • minimum salary you will guarantee, and
  • skills, experience and qualifications required
  • details of any person you have already identified that you would like to sponsor, including their full name, date of birth, nationality, current immigration status, current job title and duties and 3 months of payslips
• Proof that you have the necessary HR systems/processes in place
• Recent business bank statement(s)
• Employer’s liability insurance policy – providing cover of at least £5 million
• VAT registration Certificate
• Proof of registration with HMRC as an employer for PAYE and National Insurance Commercial property lease agreement
• Most recent accounts
• Evidence of registration with a regulatory body

You will be advised by UKVI which documents to provide to support your application. Your application must include a submission sheet that has been signed and dated by your authorising officer, along with all of the mandatory documents on the submission sheet. In addition to providing each item of documentation requested, you will also need to ensure that they are provided in the correct format.

How much does the sponsor licence cost for sole traders?

Before entering into the sponsor licence application process, it is useful to understand the overall costs of sponsorship. As a sole trader, you can expect to pay the following sponsorship fees:

• Sponsor licence application fee: £536 for a small sponsor – your business will be classed as a small sponsor if 2 or more of the following criteria apply:
  • annual turnover of £10.2 million or less
  • total assets of £5.1 million or less
  • 50 employees or fewer
• Immigration skills charge: £364 for each sponsored worker for 12 months (then £182 for each period of 6 months thereafter). E.g. if you plan to sponsor an overseas worker for 5 years, you can expect to pay immigration skills charges of £1,820 (5 x £364).
• Certificate of sponsorship (CoS) cost: £239 per sponsored worker
• Premium customer service for employers: £8,000 for small sponsors – provides access to a dedicated account manager at UKVI

In addition, any sponsored workers will need to cover their visa costs and the immigration health surcharge.

It is important to pay the correct amount for your sponsor licence application, as not doing so may be grounds for refusal.

References

¹ GOV.UK: Eligible occupations and codes

² GOV.UK: Appendix A