Reporting Changes to Your Organisation: A Legal Professional’s Perspective

Navigating the sponsor licence system can be complex, and it is critical that you remain compliant with UK Visas and Immigration (UKVI) requirements at all times. As a sponsor, you must notify the Home Office of significant changes to your organisation—failing to do so can jeopardise your licence status and your ability to employ skilled workers. Below, I provide an overview of the key considerations based on our professional experience advising sponsor licence holders.

1. Understanding the Basics

• ‘You’ and ‘Your’: In the Home Office guidance, these terms can refer not just to you individually but also to your business partners, key stakeholders, and your organisation as a whole.
• Key Personnel: Your sponsor licence must list an Authorising Officer, a Level 1 User (and potentially Level 2 Users), and a Key Contact. These individuals have distinct responsibilities outlined in the sponsor guidance (Part 1, Section L4).

2. Changes You Must Report

You are expected to update UKVI on any significant changes to your organisation’s structure, status, or personnel. Common reportable changes include:

1. Address or Contact Details
2. Replacing Key Personnel (Authorising Officer, Level 1/2 Users, or Key Contact)
3. Organisational Name Changes
4. Structural Changes (e.g., opening new branches/sites, adding overseas linked entities for Global Business Mobility routes)
5. Loss or Gain of Legal Accreditations (e.g., charitable status, professional registrations)
6. Cessation of Trading or Insolvency
7. Mergers or Takeovers
8. Relevant Convictions for those covered under ‘you’
9. Changes to Organisation Size (small to large, large to small)

Important: Most changes must be reported within 20 working days of you becoming aware of them. Swift reporting helps preserve your licence rating and avoids potential sanctions.

3. Using the Sponsorship Management System (SMS)

The SMS is the primary tool for updating the Home Office. A Level 1 User on your licence can log in and select the relevant options to:

• Request changes to licence details, such as your registered name, address, and other organisational details.
• Manage Level 1 and Level 2 Users, which includes adding or removing users or updating contact details.
• Replace your Authorising Officer or Key Contact. (Keep in mind this generally requires submission of a signed declaration and supporting evidence.)

Some updates are automatically actioned in the SMS if your licence is fully active and A-rated and if certain postcode conditions are met. However, the Home Office will perform checks on new Key Personnel. If there are any issues, you may be asked to propose an alternative individual.

4. When You Cannot Use the SMS

There are scenarios where you must use a change of circumstances form rather than the SMS, particularly if your organisation has no remaining Level 1 Users to access the system (for instance, if your sole Level 1 User has left). You would also use this form to:

• Add a Level 1 User when no one currently has SMS access.
• Replace an Authorising Officer if that individual will also serve as the only Level 1 User.
• Surrender your licence or make it dormant when you do not have SMS access.

Note: Unless you are surrendering your licence entirely, you must ensure at least one Level 1 User is in place to maintain the integrity of your sponsorship.

5. Providing Supporting Evidence

When reporting changes—whether through the SMS or via the change of circumstances form—you may need to supply supporting documents. The Home Office will either:

1. Generate a submission sheet if you request a change through the SMS.
2. Write to you outlining any further documents they need if you use a change of circumstances form.

All documents must comply with the format requirements in Part 1, Section L7 of the sponsor guidance. You typically have 5 working days to provide these items. Failure to meet deadlines can lead to your request being refused and, in severe cases, licence revocation.

6. Dealing with Name Changes

A change to your organisation’s name can sometimes be handled swiftly, particularly if it’s purely administrative (for example, incorporating your already-existing business). However, substantial changes involving mergers, acquisitions, or other restructures may necessitate applying for a new licence. Always explain the context and extent of your name change to avoid delays and ensure compliance.

7. Protecting Your Licence

Maintaining an accurate and up-to-date SMS record is vital for:

• Preserving an A-rating and continued ability to sponsor workers.
• Avoiding sanctions such as licence downgrading, suspension, or revocation.
• Demonstrating good faith compliance with UK immigration rules.

In my experience advising businesses, the largest risk stems from failing to promptly update the Home Office on changes or providing incomplete information. Prompt, accurate reporting demonstrates your ongoing commitment to compliance and reduces the likelihood of facing severe penalties.

8. Practical Tips for Sponsor Licence Holders

• Maintain a Compliance Calendar: Monitor key dates for your sponsor licence (renewals, audits, and reporting deadlines).
• Regular Internal Audits: Conduct periodic checks on documents and SMS records to ensure accuracy.
• Train Key Personnel: Make sure that anyone with SMS access understands their responsibilities and is familiar with the Home Office guidance.
• Seek Legal Advice Early: If you’re unsure about the classification of a business change or anticipate a merger or takeover, consult legal professionals before taking action.

Final Thoughts

Keeping the Home Office informed of organisational changes is not merely a formality—it’s a mandatory element of sponsor licence compliance. As a legal professional, I strongly advise sponsor licence holders to review their internal processes, ensure Key Personnel are fully aware of their duties, and seek expert advice whenever the scope of a change is unclear.

By doing so, you safeguard both your workforce and your organisation’s long-term immigration strategy. If you have questions or need personalized advice on reporting changes, please feel free to contact me or another qualified legal adviser.