The points based system and sponsor licence system was introduced nearly four years ago in November 2008. Sponsors who registered under the system when it was first introduced should by now have been contacted by the UK Border Agency (UKBA) to renew their licence which expires after four years.
In order to renew a licence a level 1 user will need to log onto the SMS, select the relevant drop down options and submit the sponsor licence application online. Once submitted, you will need to pay the relevant fee which currently stands at £1,500 for a medium / large company. We advise that sponsors check their applications carefully before they are submitted. If a renewal application is refused after the current licence has expired, existing migrants who are sponsored under a Tier 2 visa may have their leave curtailed to 60 days. Sponsors should note that the UKBA may undertake a sponsor compliance visit or request documents as part of the renewal process. Due to the fact that there is likely to be an influx of renewal applications and the sponsor licencing team is likely to be very busy, we advise that organisations plan ahead. If your organisation no longer has a need for a licence and no longer sponsors any migrants under Tier 2, then you should consider surrendering the licence. Please note, if you renew the sponsor licence but do not have any migrants currently being sponsored, you are still required as a licence holder to continue with your sponsorship duties. This includes any changes in organisation details or key personnel.