Self-Sponsorship for a UK Skilled Worker Visa: A Comprehensive Guide for Entrepreneurs

The UK’s immigration rules offer a unique pathway for entrepreneurs and business owners to secure a Skilled Worker visa through self-sponsorship. In simple terms, self-sponsorship allows you to set up your own UK company and sponsor yourself as a skilled worker for that business . This is not a separate visa category but rather a legal strategy under the Skilled Worker route.

By effectively becoming both the employer (via your company) and the sponsored employee, you can obtain permission to live and work in the UK, opening doors for business growth and eventual settlement. This guide provides a step-by-step walkthrough of the self-sponsorship process in a formal, lawyerly tone – covering company formation, sponsor licence application, visa requirements, compliance duties, timelines, costs, and common myths. We also include practical tips to minimize the risk of refusal, ensuring you approach self-sponsorship with a well-prepared plan.

What is Self-Sponsorship in the UK Immigration Context?

Self-sponsorship refers to the process of establishing a UK business and using it to sponsor your own work visa. The term can be misleading – there is no separate “self-sponsorship visa” in UK law. Instead, it’s an innovative use of the Skilled Worker visa route . In practice, you will:

• Register a UK company (often a private limited company) that you will own or direct.

• Obtain a Sponsor Licence from the Home Office for that company, authorizing it to sponsor workers.

• Offer yourself a genuine skilled job in the company (e.g. director or another qualified role) that meets all Skilled Worker criteria (skill level, salary, etc.).

• Have the company (as sponsor) assign you a Certificate of Sponsorship, and then apply for a Skilled Worker visa as the sponsored employee.

This approach is ideal for entrepreneurs who want control over their business and immigration status without relying on a third-party employer . It enables a non-UK national to build or expand a business in Britain while securing lawful residency and a path to Indefinite Leave to Remain (permanent settlement) . However, it comes with strict requirements and oversight. The Home Office will closely scrutinize your business’s legitimacy and the genuineness of the job position to prevent abuse of the system .

Key point: Self-sponsorship is perfectly legal but demands thorough preparation. You must meet the same Skilled Worker visa requirements as any employer-employee scenario, plus demonstrate that your company is genuine, capable of meeting sponsorship duties, and not just created as a shell for a visa. In the sections below, we outline each step of the process and the legal obligations involved.

Step 1: Register Your UK Company

The first step toward self-sponsorship is to establish a UK business entity. Most applicants choose to form a private limited company (Ltd), which offers limited liability and is a common structure recognized by UK Visas and Immigration . Key actions in this stage include:

1. Choose a Company Structure: A Private Limited Company is generally recommended for self-sponsoring entrepreneurs due to its familiarity and flexibility.

2. Register with Companies House: You must officially incorporate your company by registering it with Companies House (this can be done online) . You will need a company name, a registered UK office address, at least one director, and a memorandum of association. The registration fee is low (usually around £12 if done online).

3. Open a Business Bank Account: Having a UK corporate bank account in your company’s name is essential. It not only enables you to conduct business, but also serves as mandatory evidence when you later apply for a sponsor licence . Most banks will require company documents and identification; note that as a non-UK resident, opening an account can be tricky but is achievable with the right documents and possibly in-person verification.

4. Register for PAYE (and VAT if applicable): Register your company with HMRC as an employer for PAYE (Pay As You Earn) tax and National Insurance. If you expect turnover above the VAT threshold, register for VAT as well . These registrations signal to the Home Office that your business intends to trade and hire employees legitimately .

5. Prepare a Business Plan: While not a legal requirement to form the company, a comprehensive business plan is highly advisable. It should outline your business objectives, market analysis, financial projections, and how your role fits into the company’s growth . A solid business plan will later support your sponsor licence application by demonstrating the viability and genuineness of the business.

Ensure your company has everything in place properly from the start – a UK registered address, required registrations, and adherence to regulatory obligations . Taking care of these foundational steps lays the groundwork for a successful sponsorship process. The Home Office may request evidence of your trading presence (like bank statements, a functional website, or contracts) to judge if the business is real and active . Tip: Even if your company is newly formed, begin any legitimate trading activities you can (sign a lease, build a website, network with potential clients) prior to the licence application. Early evidence of activity can help prove your business is not just a shell created for a visa.

Step 2: Obtain a Sponsor Licence

What is a Sponsor Licence? It is an approval from the Home Office that allows a UK company to sponsor foreign workers under certain visa routes (like Skilled Worker). Without a sponsor licence, your company cannot sponsor you (or anyone) for a work visa. Obtaining this licence is often the most critical and involved part of the self-sponsorship journey .

Key requirements and process for the Sponsor Licence application:

• Online Application: You must complete an online form on the official gov.uk portal and pay the application fee (currently £536 for small businesses or £1,476 for medium/large businesses ). A new company will usually qualify as a small business, paying the lower fee.

• Nominate Key Personnel: As part of the application, you need to designate certain roles within the business for the Sponsor Management System (SMS): an Authorising Officer, a Key Contact, and at least one Level 1 User . These individuals handle compliance and the technical management of your licence. Importantly, the Authorising Officer (AO) must be a senior person responsible for the licence and should be a settled person in the UK (e.g. a British citizen or someone with indefinite leave) . The Level 1 User (who manages day-to-day sponsorship tasks on the SMS) must also usually be a person with permanent status in the UK. Because you, as the visa applicant, won’t have UK settlement yet, you will need to find a UK-settled individual (often a hired UK-based director or an advisor) to fulfill these roles. This is a strict requirement – you cannot assign a CoS to yourself or act as Authorising Officer if you are not settled . Many self-sponsors arrange for a trusted partner, co-director, or professional service provider to act as the AO for the licence application.

• Prepare Supporting Documents: The Home Office requires evidence that your company is a genuine operating business. Appendix A of the sponsor guidance lists acceptable documents. For a new start-up, you’ll typically need to submit at least four documents , which often include:

  • A bank statement or letter confirming the company has a UK business bank account (this is mandatory) .

  • Proof of HMRC registration as an employer for PAYE (and VAT registration if applicable) .

  • Employer’s liability insurance certificate (covering at least £5 million) .

  • Proof of business premises (like a lease or ownership documents) , or recent business accounts if available.

  • (If your company already has employees, a sample payslip or evidence of trading contracts can be helpful to include.)

    Ensure all documents are in the proper format and are genuine – incomplete or inconsistent documentation is a common reason for sponsor licence refusals .

• HR Systems & Compliance Readiness: In reviewing your application, the Home Office will evaluate whether your business can fulfill sponsor duties. They want to see that you have basic HR systems to track employees (for example, knowing if a sponsored worker doesn’t show up for work, or when their visa is expiring) . Be prepared to outline how you will manage sponsorship compliance – e.g., keeping proper records of workers’ passports/visas, tracking work attendance, updating contact details, etc. You may be asked to provide an organizational chart and details of your hiring practices , especially because you plan to sponsor yourself. It’s wise to have a simple HR policy in place and to be ready to demonstrate awareness of your reporting obligations (discussed further below).

• Compliance Visit (Possibility): The Home Office may conduct a pre-licence compliance audit or visit to verify your setup . They could check your stated business address to see if you have a real office, and ask questions about your business plan and the role you intend to sponsor. Be honest and transparent in all dealings. Having a professional-looking website, a business email domain, and some evidence of commercial activity can bolster your credibility .

• Processing Time: A standard sponsor licence application can take up to 8 weeks for a decision . There is a limited priority service that, for an additional fee (£500), may expedite processing to around 10 working days – but availability is limited. Plan for the full 8 weeks to be safe. During this period, the Home Office might reach out for additional information or conduct the visit mentioned above.

Obtaining the sponsor licence is a major milestone. A successful outcome means your company is now on the Home Office register of sponsors and can start issuing Certificates of Sponsorship (CoS). Treat the licence application with great care – a poorly prepared application can result in refusal, wasting time and money. If in doubt, seek professional legal advice to review your application before submission .

Step 3: Sponsor Yourself and Apply for the Skilled Worker Visa

With a sponsor licence in hand, your company can now sponsor you as its employee. This involves two sub-steps:

A. Assigning the Certificate of Sponsorship (CoS): Once the sponsor licence is approved, the Authorising Officer (or a delegated Level 1 User) must issue a Defined Certificate of Sponsorship for your visa application . A CoS is an electronic work authorization document with a unique reference number. When creating the CoS, your sponsor will need to input:

• Your role and job title in the company. This role must correspond to an eligible occupation code at or above RQF Level 3 (roughly equivalent to A-level qualifications) . For example, if you will act as the company’s General Manager, you might use the occupation code for a relevant managerial position.

• Job description and duties: It should be credible for the business type and clearly not a sham position. The Home Office will assess if the job seems genuine and necessary for the business .

• Salary: The CoS must state the annual salary you will be paid. This salary must meet or exceed the Skilled Worker minimum threshold – currently £38,700 per year (general threshold) or the specific “going rate” for your occupation, whichever is higher . (Some limited exceptions allow a lower salary if you can “trade” points, such as for new entrants or shortage occupations, but generally £38,700 is the baseline for most applicants in 2025.) It is critical that the salary is realistic for the role and that the company can afford it.

• Work hours and start date: Typically full-time (at least 30+ hours per week) and a start date after the CoS issuance. The CoS will be valid for 3 months from issuance for the purpose of applying for the visa .

  Ensure all details on the CoS are accurate and truthful. Inconsistencies between the CoS and your other documents (or any hint that the job was fabricated) can lead to a visa refusal . Remember, you as the business owner might be inclined to pay yourself a high salary to meet the rules, but it must be credible given the company’s finances. (Important update: If you invested personal funds into your company, be aware that the Home Office may deduct any self-investment from your salary when assessing if you meet the £38,700 threshold. New rules aimed at *preventing “self-funding” of one’s salary treat invested capital as not counting toward salary . In short, you cannot simply inject £100k into your startup and pay yourself £50k from it to satisfy the rules – the authorities may consider that effectively paying yourself back with your own money.)

After assigning the CoS, your sponsor (company) will also have to pay the Certificate of Sponsorship issuance fee. As of 2025, this fee was £239 , but note that on 9 April 2025 the Home Office implemented an increase for most work routes – the CoS fee for Skilled Workers is now £525 . (Your company, as the sponsor, pays this fee to issue the CoS.)

B. Submitting the Skilled Worker Visa Application: Armed with the CoS, you (now in the role of the visa applicant) can apply for your Skilled Worker visa. This is an individual application that you submit online via the gov.uk website. Key points for this stage:

• Application Form: You will complete an online form where you input your personal details, passport information, Certificate of Sponsorship number, and answer questions about your background. You’ll also need to declare any criminal history and other suitability questions.

• Supporting Documents: Prepare the required documents to submit with the application (usually uploaded digitally). These typically include:

  • Passport (valid travel document) .

  • Certificate of Sponsorship number (you’ll just enter the reference; the UKVI can verify it in their system) .

  • Sponsor Licence number of your company (to show your sponsor is authorized) .

  • Proof of English language proficiency – e.g., IELTS for UKVI test results at CEFR B1 level or above, or evidence of a degree taught in English .

  • Financial maintenance proof – you must show you have at least £1,270 in personal savings (held for 28 days) unless your sponsor certifies maintenance on the CoS . Often, as the 100% owner of your sponsor company, it makes sense to show your own funds for this requirement.

  • Tuberculosis (TB) test certificate (if you are applying from a country where TB tests are required for UK visas) and criminal record certificate (if working in certain sectors like education or healthcare), if applicable .

  • Any additional documents to support the genuineness of your case (optional but wise): e.g., a copy of your business plan, contracts or letters from prospective clients, etc., can be included to reinforce that the business/job is real. While not strictly required by the visa application, these can be useful if an Entry Clearance Officer has doubts.,

• Immigration Health Surcharge (IHS): As part of the application, you must pay the IHS fee, which is £624 per year of visa granted (though XLAW notes it at £1,035 – likely updated rates) . For a 3-year visa, this is around £1,872; for a 5-year visa, ~£3,120. (The exact IHS might vary if government changes occur, so always check the latest fee.)

• Visa Application Fee: The Home Office charges a processing fee for the Skilled Worker visa. The amount varies by the length of visa and whether you apply from inside or outside the UK. It typically ranges from around £700 up to £1,400 (for faster services or longer durations) . For example, a 3-year visa from overseas might be ~£719, while a 5-year visa or in-country application could be higher. If you opt for priority service to expedite the decision, that’s an additional ~£500 (and super-priority ~£800) .

• Biometrics Appointment: After submitting the form and paying fees, most applicants will need to attend a biometric enrollment (fingerprints and photo). If you’re abroad, this means going to a Visa Application Centre in your country. If you’re in the UK switching status, you’ll book an appointment with UKVCAS. Some applicants with certain nationalities and chip passports may use a smartphone app to submit biometrics (the “UK Immigration: ID Check” app) – the system will let you know if this is available.

• Decision Waiting Time: Standard processing for overseas Skilled Worker visas is around 3 weeks, and for in-country applications about 8 weeks . If you purchased priority processing, it could be as quick as 5 working days. In total, from the start of Step 1 to visa approval in Step 3, realistic timelines are about 2–3 months for the whole journey . Delays can occur, so do not book any travel until you have the visa.

Once your visa is approved, you’ll get a vignette (sticker) in your passport if applying from abroad (allowing initial travel to the UK, usually a 90-day entry window) and then will collect a Biometric Residence Permit (BRP) in the UK. If applying inside the UK, your status will switch to Skilled Worker and you’ll receive a BRP by mail. Congratulations – you are now a sponsored worker of your own business!

Important: As a self-sponsored Skilled Worker, you must actually work in the role and business described. The visa ties you to your sponsoring company (you cannot work elsewhere except some limited supplementary work). You are expected to draw the salary you promised and perform the job duties. Any drastic changes (like a new job position or significant salary change, or if the company pivots its business) may require reporting to Home Office or even a new application. In the next section, we cover the ongoing compliance duties that come with holding a sponsor licence and sponsored status.

Eligibility Criteria for Self-Sponsorship

To succeed in a self-sponsorship application, both you and your company must meet all relevant eligibility requirements. Here is a summary of the key criteria:

• Genuine UK Business: You must have a UK-registered company that is actively operating or ready to operate. This means a real business presence (not just a paper company). The company should have a UK bank account, any necessary registrations, and a plan to conduct lawful business. Notably, the Home Office does not require the business to be already trading or profitable at the time of application , but you must convincingly show it’s a viable enterprise (through documents like a business plan, evidence of investment, website, etc.) . There is no minimum revenue or minimum investment amount mandated, but the business must have adequate funds to pay your salary and operate .

• Sponsor Licence: The company must have obtained a Sponsor Licence with permission to sponsor Skilled Workers. Without this, no CoS can be issued. Achieving the licence means the company met various checks (covered in Step 2 above) demonstrating it can uphold sponsor duties. The licence remains valid for 4 years (renewable) and can sponsor multiple workers if needed.

• Age and Capacity: You (the visa applicant) must be at least 18 years old (standard for work visas). You should also be of sound character (serious criminal convictions can disqualify applicants, though this is assessed case-by-case) and likely will need to provide a criminal record certificate if working with vulnerable sectors.

• Skilled Job at Appropriate Level: The role you will fill in your company must correspond to an occupation listed in Appendix Skilled Occupations of the Immigration Rules, at RQF Level 3 or above . In practice, many entrepreneurs sponsor themselves in managerial or director roles. For example, Marketing Director, IT Project Manager, Business Development Manager could all be eligible roles if they meet the skill level. You will specify the occupation code on the CoS and should be prepared to show you have the qualifications or experience for that role if asked.

• Salary Threshold: You must be paid a salary that meets the general salary threshold of £38,700 per year or the specific “going rate” for your occupation code – whichever is higher . Each occupation code has a going rate (published by the Home Office in tables). For instance, if the going rate for your job is £45,000, you must pay yourself at least £45,000. If the going rate is £25,000, then £38,700 is the higher number so you need £38,700. (As noted earlier, some exceptions exist: new entrant workers or jobs on the shortage occupation list can allow a percentage of these rates, but these are less likely to apply in a self-sponsorship scenario unless you qualify as a new graduate or similar.) The salary must be genuine and paid into your bank (minus normal tax deductions). Tip: Consider the Immigration Skills Charge cost when budgeting salary – this is a separate charge the company pays (details in Costs section) and cannot be deducted from your salary. The company’s financial capacity to pay your wages will be scrutinized.

• English Language: You need to prove English proficiency at B1 level (Intermediate) on the CEFR scale . Common ways to satisfy this are an IELTS for UKVI test with at least 4.0 in each component, or having a degree taught in English, or being a national of a majority English-speaking country. This is a non-negotiable requirement for the visa. Prepare your English test certificate or equivalent evidence for the application.

• Maintenance Funds: As mentioned, you typically must show £1,270 in personal savings held for 28 days (and additional funds for any dependants) . The only exception is if your sponsor company certifies maintenance for you on the Certificate of Sponsorship. Certification means the company will cover your expenses if needed – but since as a self-sponsor you essentially control the company, UKVI might still want to see you have funds. It’s usually simplest to provide bank statements showing the required balance to avoid any doubt .

• Good Faith and Lawful Intent: The Home Office will evaluate whether you genuinely intend to run a business and work in the role, and that this whole arrangement is bona fide. Any indication that you are using this route to bypass immigration rules (for example, setting up a sham company or intending to immediately do other work) will result in refusal. Integrity is crucial.

Before applying, do a self-audit against all these criteria. If any piece is missing (for example, you haven’t taken an English test yet, or your intended salary is too low), address it first. Meeting the requirements in full is the only way to obtain a Skilled Worker visa under self-sponsorship.

Documentation and Evidence Needed

Documentation is the backbone of any immigration application, and self-sponsorship involves two layers of documentation: one for the Sponsor Licence application and one for the Skilled Worker visa application. Below we outline the key documents at each stage (some we have touched on earlier):

For the Sponsor Licence Application (Company Stage):

• Business Bank Account Evidence: A letter from your UK bank or a bank statement confirming the account in the company’s name (required) .

• Incorporation Documents: Certificate of incorporation from Companies House, memorandum & articles of association.

• Employer Registrations: HMRC letter or printout showing your PAYE reference number (and VAT certificate if registered) .

• Insurance Certificate: Employer’s Liability Insurance policy documents (coverage of at least £5 million from an authorized insurer) .

• Premises Evidence: Proof of your trading address – e.g. office lease, utility bill, or rent agreement in the company’s name .

• Financial Statements or Investment Evidence: If available, recent accounts or evidence of funds injected into the business (to show you have operating capital).

• Organizational Chart and Job Details: Though not strictly “documents” to upload, you should prepare a brief description of your business, an organogram showing key personnel, and an explanation of the job you intend to sponsor (title, duties, how it fits into the company) . The Home Office often asks for this in an appendix or letter with the application. They may also want to know how you identified yourself as the best candidate for the job – essentially, be ready to justify why you are necessary for the role (this is usually obvious if you’re the founder, but still worth articulating).

When applying for the sponsor licence, you will scan and upload these documents. Ensure they are clear, legible, and where required, certified translations if any are not in English. Misleading or forged documents will lead to a refusal and possibly a lengthy ban, so never take that risk. It’s about quality and consistency – the documents collectively should tell the story of a genuine business gearing up to start operations and hire its first skilled worker (you).

For the Skilled Worker Visa Application (Personal Stage):

• Passport: Current passport (and old passports if needed to show travel history).

• Certificate of Sponsorship: You don’t submit a paper certificate, but you enter the reference number in the application and should have a printout of the CoS details for reference .

• Sponsor Licence Number: Also entered in the form; shows your sponsor is licensed .

• Proof of English: IELTS for UKVI test report, or UK NARIC/UK ENIC certificate confirming your foreign degree meets English requirements, or other acceptable proof.

• Financial Documents: Personal bank statements for the last 1-3 months showing at least £1,270 maintained (plus dependant funds if applicable) . If your CoS notes that the sponsor will maintain and accommodate you, that can suffice, but having your own funds documented is safer.

• TB Certificate: If you’re applying from a country where this is required (check the list on gov.uk), an official TB clearance certificate from an approved clinic (usually valid 6 months).

• Criminal Record Certificate: Only required for certain jobs (mostly education, healthcare, therapy roles involving vulnerable people). Unlikely needed if you’re sponsoring yourself as a director or similar, but verify based on your role.

• Dependants’ Documents: If your spouse or children are applying with you, each needs documents like passports, birth/marriage certificates, proof of relationship, and their own financial evidence. (The maintenance requirement for dependants is £285 for a spouse, £315 for the first child, £200 for each additional child .) Dependants apply separately but usually at the same time as you.

It’s wise to also prepare a cover letter for the visa application, especially in a self-sponsorship scenario. In this letter (written in a professional tone, possibly by your legal advisor), you would briefly outline how you meet all requirements and list the documents provided. This can help the visa officer understand your case clearly, particularly since self-sponsorship might be less common and not immediately understood by every caseworker.

Remember: Consistency between the sponsor licence stage and visa stage is key. The information in your sponsor licence application (e.g. job role, salary, business plan) should match what is stated on the CoS and visa application. Any changes or discrepancies can raise red flags.

Timelines and Costs

A self-sponsorship journey involves multiple steps, each with its own timeframe and expenses. Below is an overview of how long the process takes and what costs to budget for, assuming a typical case:

Timelines:

• Company Registration: As fast as 1-2 days online with Companies House (once you have your documents and a UK address ready).

• Sponsor Licence Application: Preparation can take a few weeks (to gather documents, arrange an Authorising Officer, etc.). After submission, processing is up to 8 weeks standard . If a pre-license compliance visit is required, that will fall within this period. Using a priority service (if available) might reduce this to ~2-3 weeks.

• Visa Application: Once you have the CoS, completing your visa application and biometrics might take 1-2 weeks (depending on appointment availability). After that, decision waiting time is typically 3 weeks for overseas applicants (or 8 weeks for in-country) . Priority visa service can shorten this to 5-10 days.

• Total End-to-End: From company setup to visa approval, realistically plan for 2 to 3 months total . Some have done it faster (especially if using priority services at each stage), but unforeseen delays (e.g. additional inquiries from Home Office) can arise. It’s better to have a cushion, particularly if you have a target date to move to the UK.

Costs: (all amounts are approximate and subject to change – always check latest fees)

• Company Formation: £12 (standard online filing fee). If using an agent or lawyer to set up, possibly £100-£300 including registered address service.

• Sponsor Licence Fee: £536 for small companies, or £1,476 for medium/large . Most new startups qualify as small (meeting at least 2 of: <=50 employees, <=£10.2m annual turnover, <=£5.1m assets — updated 2023 thresholds). This fee is paid to the Home Office at application.

• Certificate of Sponsorship: £525 for a Defined CoS (Skilled Worker) as of April 2025 (previously £199 then £239, but now increased). Paid by the sponsor when assigning the CoS.

• Immigration Skills Charge (ISC): This is often overlooked in initial budgeting. The ISC is a levy that sponsors must pay for each sponsored worker, with only a few exceptions. For a small sponsor, it is £364 for the first 12 months, plus £182 for each additional 6-month period . For example, if you plan to be sponsored for a 3-year visa, the company will pay £364 + (4 * £182) = £1,092 at the time of assigning the CoS (covering 3 years) . A 5-year visa would incur £1,820 in ISC for a small sponsor . (Medium/large sponsors pay double those rates.) The ISC is paid upfront and is non-refundable if the visa is granted and you start work; if the visa is refused or you never use it, the ISC will be refunded. Importantly, you cannot pass this charge on to the worker (Home Office forbids clawing it back from a sponsored employee’s salary) . In a self-sponsorship scenario, that means your company must absorb this cost.

• Skilled Worker Visa Fee: Ranges from about £700 to £1,500. For instance, a 3-year visa from abroad is around £719; 5-year around £1,235. In-country applications can be a bit more. If you opt for priority service, add ~£500; super-priority ~£800.

• Immigration Health Surcharge: £624 per year of visa (possibly rising to £1,035 as indicated in some sources – the government had plans to increase it). Currently, for a 3-year visa this is £1,872; for 5-year, £3,120. If you have dependants, each pays the same annual IHS.

• English Test: ~£150 for an IELTS for UKVI test, if you need one.

• Legal/Professional Fees: These are optional but many entrepreneurs hire an immigration lawyer or consultant to assist. Fees can range widely (£1,500–£5,000 or more for full service). While not required, professional guidance can help navigate complexities and avoid costly mistakes – consider it if budget allows.

Overall, a single applicant self-sponsoring for a 3-year visa should budget in the ballpark of £4,000–£6,000 in government fees (sponsor licence + CoS + ISC + visa fee + IHS) excluding any professional advisor fees. Each dependant adds visa fee + IHS (e.g. a spouse for 3 years might be an extra ~£2,500). It’s not a cheap process, but for many, the investment is worthwhile for the opportunity to establish a business in the UK and eventually gain permanent residence.

Sponsor Compliance Duties and Ongoing Obligations

Securing the visa is not the end of the journey – it’s the beginning of your responsibility as both a sponsored worker and a licensed sponsor. The Home Office holds sponsors to high standards. Non-compliance can lead to your sponsor licence being downgraded or revoked, which would jeopardize your visa. Here are the core compliance duties you must adhere to:

• Record-Keeping: Your company must keep detailed records for any sponsored workers (including yourself). This includes copies of your passport and visa/BRP, evidence of your UK address and contact details, proof of your NI number, up-to-date contact information, etc. . Also keep records of your employment – e.g. signed employment contract, payslips, timesheets or work output evidences. These must be organized in case of a Home Office audit.

• Right to Work Checks: Even though you are the business owner, you must perform a right-to-work check on yourself as an employee (once you have the BRP). Essentially, ensure that there is a record that you as the worker have the legal right to work and that you (as employer) checked this.

• Monitoring and Reporting: You need systems to monitor your own attendance and engagement with the job – somewhat odd when you are the worker, but think of it this way: if you cease working or are frequently absent, your company as the sponsor is obligated to take note. Key reporting duties include:

  • If you (the sponsored worker) do not report to work for 10 consecutive days without permission, the company must report this via the Sponsor Management System (SMS).

  • Any changes in your employment status or role must be reported. For example, if your job title or duties change significantly, or your salary drops below what was stated, or you go on a long unpaid leave, these events might need reporting and possibly a new CoS/visa application.

  • If the company’s details change (address, ownership, key personnel like the Authorising Officer), those must be updated on the SMS within specific deadlines (usually 10 working days for most changes) .

  • If the company ceases trading or if you stop working for the company, you must inform the Home Office. For instance, if you decide to close the business, you are obliged to report that and your sponsorship would end, leading to curtailment of your visa .

• Maintain Role and Salary Compliance: You must continue to be employed in a role that meets the Skilled Worker criteria. This means your salary and job duties should remain at or above the required level at all times . If your business faces difficulty and you pay yourself less one month, or change your role, you could accidentally breach visa conditions. Plan finances accordingly to ensure you can always pay at least the promised salary. For ILR (permanent residency after 5 years), you’ll also need to be earning at least the prevailing ILR salary threshold (often the same as the general threshold, around £38,700 or higher) when the time comes .

• No Illegal Working or Side Jobs: As a sponsored worker, you cannot take on other employment outside what is allowed (a supplementary job in the same field is allowed under certain hours, but you cannot for example work full-time elsewhere or be self-employed in a different business). Since you are focusing on your own business, this is usually straightforward. Just remember that the visa ties you to your sponsoring company as your main employment.

• Do Not Recoup Sponsor Costs from the Employee: Recent guidance has clarified that sponsors must not claw back costs like the sponsor licence fee or CoS fee from the sponsored worker . In your case, you effectively control both sides, but ensure that on paper the company is bearing those costs. Never deduct such costs from your salary or have any agreement to repay the company for them – that would violate sponsor rules. (The only cost the worker can pay is the visa application and IHS, which in self-sponsorship you paid yourself anyway.)

• Renewals and Updates: A sponsor licence lasts 4 years; if you intend to continue sponsoring (for example, to extend your visa or sponsor others), renew the licence before it expires. Your visa may be for up to 5 years; if your licence lapses, you cannot extend your visa until it’s reinstated. Also keep an eye on your visa expiry and start any extension or settlement process well in advance.

The Home Office can conduct audits or unannounced visits during your sponsorship. They might check that you have a real office, see that appropriate work is being carried out, and review your record-keeping. As long as you are genuinely running your business and keeping things in good order, such compliance checks are manageable.

Finally, note that if something changes radically – say you want to change jobs and work for a different company – you would need to get that new company to sponsor you (and your current company would have to stop sponsoring you). Self-sponsorship doesn’t lock you in forever, but transitioning requires careful planning so you don’t jeopardize your stay.

Dispelling Common Myths about Self-Sponsorship

There’s a lot of misinformation surrounding the idea of self-sponsorship. Let’s address some common myths and misunderstandings in this area:

• Myth 1: “Self-sponsorship is an official visa category.”

  Reality: False. There is no specific visa called “self-sponsorship” in UK immigration rules . It’s simply a term coined to describe using the existing Skilled Worker route in an entrepreneurial way. All rules of the Skilled Worker visa still apply – you just happen to be the one setting up the sponsoring employer. Think of it as a creative compliance route, not an independent visa program.

• Myth 2: “You need a third-party UK employer to sponsor you – you cannot sponsor yourself.”

  Reality: You can sponsor yourself through your own company – that’s the whole concept of self-sponsorship. UK law allows a company to sponsor an employee even if that employee is the owner or a director, provided the sponsorship is genuine . The crucial caveat is that you, as the visa applicant, cannot directly issue the sponsorship to yourself; it must be done by the company’s Authorising Officer who is a separate, settled person . But the bottom line is, you do not need an existing UK employer – you can create your own. This myth often arises because people assume a conflict of interest in being both employer and employee, but the rules accommodate it with the Authorising Officer requirement.

• Myth 3: “Your business must be huge or already successful to qualify for a sponsor licence.”

  Reality: No. Even a new start-up with no trading history can get a sponsor licence, as long as you can show it’s a genuine enterprise with a credible plan . There is no requirement to have a certain number of employees (you could be the first and only worker) or a minimum turnover. Small businesses and sole founders are eligible. However, the business should be appropriate for the role – you can’t sponsor yourself as a “Finance Director” if your company has zero capital or activity, for instance. The Home Office has approved licences for very small companies (even one-person startups) when the application is well-prepared. Focus on demonstrating genuineness, not size.

• Myth 4: “Self-sponsorship is a loophole or shady practice.”

  Reality: Self-sponsorship is legal and recognized as long as all immigration rules are followed. It is not about exploiting a loophole; it’s about meeting the requirements in an unconventional but permitted way. The Home Office is aware of this route and has even updated rules to ensure it’s used properly (for example, the recent rule about deducting owner’s investments from salary calculations shows they are regulating self-sponsorship, not banning it outright). Many legitimate entrepreneurs have used this pathway to establish companies in the UK. The key is transparency and compliance – if you play by the book, self-sponsorship is a valid route, not a trick.

• Myth 5: “One must hire additional employees or have local partners for approval.”

  Reality: Not necessarily. There is no express requirement that you must employ X number of people besides yourself. Of course, if your business grows, you’ll hire staff as needed, but initially it’s acceptable to be the sole employee (aside from perhaps a resident director or AO fulfilling the compliance role). Similarly, you don’t need a UK business partner or investor – you can own 100% of the company . What you do need is a UK-based Authorising Officer/Level 1 User for the licence, but they don’t have to be co-owners; they could be a professional you designate for compliance. So, while you should integrate into the UK business environment and may collaborate with locals, there is no quota of local hires mandated to use this route.

• Myth 6: “If I invest a lot of money in the UK, I’ll automatically get a visa through self-sponsorship.”

  Reality: No amount of investment guarantees a visa. Self-sponsorship is not an investor visa; it still hinges on the bona fide job and sponsor requirements. You could put £500,000 into your UK company, but if you don’t meet the criteria (say, you choose a job role that isn’t skilled, or you can’t prove English ability), you will be refused. Investment in the business can help demonstrate credibility (and you need enough funds to run the business and pay your salary), but it’s not a free pass. Also remember the salary funding rule mentioned earlier: investing your own money and then paying it back to yourself as salary is scrutinized . Bottom line: The Home Office cares more about compliance with the rules than the sheer amount of money involved.

By dispelling these myths, it’s clear that self-sponsorship, while complex, is a viable route for those who carefully prepare. Always refer to official guidance or seek professional advice if you hear contradictory information – many myths stem from outdated knowledge or misinterpretation of the regulations.

Practical Tips to Reduce the Risk of Refusal

Embarking on self-sponsorship is an involved process, but you can improve your chances of success by following these practical legal tips gleaned from experienced immigration lawyers:

• Plan Meticulously and Seek Advice: Consider consulting an immigration solicitor at the very start of your planning . A professional can identify any weaknesses in your case (for example, a job role that doesn’t fit, or missing documents) and guide you on strengthening it. Even if you handle the applications yourself, having an initial legal consultation can be invaluable.

• Prepare a Robust Business Plan and Evidence of Activity: A well-thought-out business plan isn’t just for your own use; it can be a persuasive piece of evidence. It shows the Home Office that you have a real strategy to generate business and revenue (which in turn supports your salary). Along with the plan, gather evidence of genuine business activity – this might include a lease for office space, contracts or emails with potential clients, a live company website, marketing material, etc. The goal is to prove your company is not just a shell. Caseworkers have discretion; showing extra proof of genuineness can tip the balance in your favor .

• Choose the Right Occupation Code and Salary: Make sure the SOC code for your job is appropriate. Don’t shoehorn yourself into a code with a lower salary just to qualify; it must reflect what you actually do. Likewise, set a realistic salary – one that meets requirements but is also plausible for your business. If your chosen salary is unusually high for a startup position, be ready to justify it (e.g., you are bringing extraordinary talent or there are high-value contracts lined up). And absolutely avoid trying to recycle your own investment as salary (as noted, new rules will deduct that, which could leave you short of the threshold) .

• Ensure Key Personnel are Eligible and Informed: Since you need a settled Authorising Officer/Level 1 User, pick someone reliable and make sure they understand their duties. It could be a colleague, a hired part-time director, or even a professional service provider. They should be briefed on what to expect – for example, they might be contacted during the application or need to host a site visit. The absence of an eligible AO is a common stumbling block; address this early (some entrepreneurs have had to scramble for a UK contact at the last minute – avoid that scenario). Also, list this person on your org chart and explain their role in the business plan so the Home Office sees a compliant structure .

• Double-Check All Documents for Consistency: Small errors can lead to big problems. Ensure the company name is spelled the same across all documents, addresses match exactly, and figures (like salary) are consistent in the business plan, offer letter, and CoS. Inconsistencies can create doubt or trigger further inquiry . Have someone else review your documents if possible. Maintain an organized file of everything you submit.

• Be Ready for a Compliance Visit: Treat the possibility of a Home Office inspection seriously. Before applying for the licence, have your “virtual office” in order: if you listed a trading address, make sure mail sent there will reach you; have a basic office setup if feasible (even if you’re mostly working online). If officers visit, you should be able to show some physical presence – documents in a folder, perhaps some evidence of work. Practice explaining your business concept clearly and how you will carry out sponsor duties . Even if no visit occurs, being prepared will boost your confidence and usually results in a stronger application.

• Avoid Common Mistakes: Some frequent errors in self-sponsorship cases include not providing enough documents, offering a job that doesn’t need a full-time worker just to get a visa, or failing to show where the salary will come from. Always ask yourself: “Would a skeptical person believe this business genuinely needs this role and can sustain it?” If the answer is not a resounding yes, figure out what evidence or explanation is needed to get there. For example, if your business is brand new and you plan to pay yourself £40k/year, show where that money is coming from (investments, projected sales, etc.) so the visa officer isn’t left guessing.

• Stay Updated on Rules Changes: Immigration rules evolve frequently. Salary thresholds, fees, and policies on self-sponsorship nuances can change (as seen with the 2024/2025 updates). Keep an eye on official Home Office updates or consult your advisor to ensure you’re following the latest requirements. Using outdated forms or quoting old rules can lead to a refusal even if it was innocent.

By following these tips, you demonstrate the profile of a diligent and credible applicant – the kind the Home Office is inclined to approve. Self-sponsorship is not a casual undertaking, but with careful planning and adherence to the rules, it can be a highly rewarding avenue to achieve your UK business and residency goals.

Conclusion: Your Path Forward (Call to Action)

Self-sponsorship opens a door for ambitious entrepreneurs to take charge of their UK immigration journey. By creating your own opportunity – founding a company, obtaining a sponsor licence, and sponsoring yourself – you effectively become the master of your destiny in the UK’s business landscape. This route demands a blend of entrepreneurial spirit and strict compliance with immigration law. As we’ve detailed, you must be thorough at every step: from setting up a legitimate business and meeting all Skilled Worker criteria, to maintaining impeccable compliance after your visa is granted.

While the process can be complex, the reward is significant. A successful self-sponsorship not only grants you a work visa but also sets the stage for long-term settlement (Indefinite Leave to Remain after 5 years, and even British citizenship thereafter). You will have built a UK business and a life along with it.

That said, the stakes are high, and the Home Office will scrutinize your application. It’s wise not to navigate this path alone. Consider enlisting professional legal help to guide you through the nuances and ensure your case is as strong as possible . A qualified immigration lawyer can assist with preparing documentation, drafting the needed explanations, and avoiding pitfalls that could lead to refusal.

Your call to action: If you’re a UK-based employer or an overseas entrepreneur excited by the prospect of self-sponsorship, now is the time to act. Assess your eligibility, gather your resources, and seek expert advice if needed. Our firm has extensive experience in sponsor licence applications and Skilled Worker visas for self-sponsored founders. We invite you to contact our immigration law team for a confidential consultation about your plans. We will evaluate your situation honestly and help chart a course of action to maximize your chances of success.

Embarking on the self-sponsorship route can be the start of both a thriving business and a new chapter of life in the United Kingdom. With careful planning and the right guidance, you can turn the vision of living and working in the UK under your own sponsorship into a reality. We are here to support you every step of the way – from the initial company setup to the day you celebrate your visa approval, and beyond.

Ready to begin your self-sponsorship journey? Contact us today to discuss how we can help you achieve your UK immigration and business objectives. Your success is our priority, and we look forward to being your trusted legal partner in this endeavor.