UKVI Compliance 2025: Audit-Ready Checklist & Best Practices

UKVI compliance requirements are getting tougher. Here’s how to make sure your company does not get caught out.

9 June 2025 | By Alex Schulte

UK Visas and Immigration (UKVI) is the branch of the Home Office responsible for processing visa applications and enforcing Britain’s immigration laws.

The agency has a wide-ranging remit to punish those abusing the legal migration system, whether individuals or businesses. This means that any British business that sponsors visas for foreign workers must adhere to strict rules or face penalties.

However, only a minority of employers actually understand their sponsorship requirements. A recent report conducted by the Home Office found that:

• Few employers know how to carry out Right to Work (RTW) checks correctly
• Many incorrectly assumed that recruitment companies must verify workers
• 62% of small businesses and 42% of medium and large businesses believed driving licenses were valid RTW checks.

Some industries, such as construction, are particularly likely to be non-compliant. But they are not the only ones at risk of punitive action. UKVI is ramping up audits of skilled worker sponsors across all sectors. 

We wrote this guide to tell UK employers how to maintain compliance with the immigration system. From your reporting duties and compliance requirements to the penalties for compliance breaches, here’s what you need to know to maintain valid permission to hire foreign nationals.  

Let’s begin by asking:

What is UKVI Compliance? 

UKVI compliance refers to the regulatory obligations placed on British businesses follow when employing workers from abroad. This includes:

• Getting a sponsor licence
• Applying for a Certificate of Sponsorship (CoS) for each worker
• adhering to salary thresholds, and 
• conducting Right to Work checks. 

How to conduct Right to Work checks

Since December 2024, all overseas employers must prove that foreign applicants have the right to work in the UK.

This is normally carried out via UKVI’s online system. 

1. The employee generates a unique share code on the gov.uk site
2. Employers enter this code in the UKVI portal to check the applicant’s immigration status. 

Once completed, UK employers have legal permission to employ them.

A longer process involves checking the applicant’s original documents, such as passports and visas, against this checklist.

Home Office Sponsor Duties

If you sponsor any employees from overseas, you need to abide by a strict set of rules.

Here’s a handy way to memorise your obligations: record, report, comply. 

Record

Preserve in physical or electronic form all documents and employee records that prove UKVI compliance:

• Documents proving the role is genuine, were advertised for, and why the candidate was suitable: screenshots of the ads, interview notes
• Documents proving the worker is qualified (CV, certificate, reference or qualifications suffice).
• Payroll evidence to show the employee is being paid in line with the salary thresholds. 

Report

Report these changes via the Sponsorship Management System (SMS), the centralised UKVI database.

Remember: there are different reporting timelines. For example:

• Changes to a worker’s circumstances must be submitted on the SMS within 10 days (e.g., if their salary, role or location changes
• If the worker didn’t arrive on their start date, within 28 days. 
• The company has undergone a merger or acquisition. 

Comply

You must comply with UKVI regulations, including:

• Never assign a Certificate of Sponsorship (CoS) where there is no genuine vacancy
• Never recoup sponsorship fees from the worker
• Appoint suitable officers to handle your UKVI obligations, meaning no criminals or contractors
• Depending on the visa, ensure your worker has an Academic Technology Approval Scheme (ATAS) certificate. 
• Don’t sponsor individuals posing a serious threat to the UK.

The Home Office ensures compliance by auditing UK businesses, which sometimes leads to the decision to withdraw sponsorship.

Key Documents for General Sponsor Duties

Sponsoring businesses must keep all relevant documents for at least two years, even after the expiration of their sponsor licence.

These include:

• Right to Work check evidence, including initial checks before employment and rechecks for time-limited UK visas.   
• Certificate of Sponsorship (CoS) assignment records and the rationale for issuing each CoS.   
• Evidence of recruitment processes, such as screenshots of job advertisements, interview notes, CVs, and a clear rationale for candidate suitability.   
• Documentation proving worker qualifications, professional registrations (e.g., General Medical Council, Nursing and Midwifery Council), and any required accreditations.   
• Employment contracts and detailed job descriptions.   
• Payroll evidence, including payslips, tax codes, and records of any allowances and deductions, to demonstrate adherence to salary thresholds.   
• Comprehensive attendance and absence logs, covering paid leave, unpaid leave, sick leave, holidays, working from home arrangements, meetings, and business travel.   
• Current contact details of all sponsored workers.   
• Copies of all updates reported via the Sponsorship Management System (SMS).   
• Copies of passport pages (showing personal details and visa endorsements) and Biometric Residence Permits.

For more on the rules-based framework for sponsors, see our guide to Skilled Worker Visa and Immigration Rules.

What is the Sponsor Management System? 

The Sponsorship Management System (SMS) is an online central platform provided by UK Visas and Immigration (UKVI) for sponsor licence holders to manage sponsored workers and fulfil sponsor duties. 

Through SMS, you can: 

• Assign Certificates of Sponsorship (CoS)
• Report worker changes (such as absences or salary adjustments)
• Update business details. 

Effective use involves regular log-ins to monitor updates and ensure all sponsor activities are accurately and promptly recorded.

Key Personnel 

Key personnel in human resources must be fully trained on the Sponsor Management System, submit required updates promptly, and keep their contact details accurate and current within the system.

• Authorising Officer: Holds overall responsibility for sponsorship duties.
• Key Contact: Serves as the main point of contact for UKVI communications.
• Level 1 User: Manages the SMS on a daily basis, including assigning Certificates of Sponsorship (CoS) and reporting changes.
• Level 2 User: An optional role that can perform some Level 1 duties.

Remember: 

• SMS users can’t give a CoS to themselves or to close relatives or partners.
• Contractors can’t be used, but UK-based legal representatives can
• The Authorising Officer must be in the company. 

Sponsorship Management System reporting timelines

Extra UK visa sponsor guidance for other skilled worker routes

Certain UK visas have additional sponsor duties (and must provide evidence that they’ve met them before applying for the visa). 

For Care Workers

• Sponsors must be registered with the Care Quality Commission (CQC) and include the CQC registration number in applications.
• Sponsors must try to recruit from the displaced worker pool (via regional care partnerships) before sponsoring overseas workers. Provide evidence of this engagement unless exceptions apply.

Pre-registration Nurses and Midwives

• Nurses must complete NMC registration within 8 months of starting work. If not achieved, sponsorship must end.
• Can be paid below the general threshold for up to 8 months, provided they meet NHS Band 3 rates. Once registered, you must meet the salary points.

ATAS (Academic Technology Approval Scheme)

• Certain research and academic roles require an ATAS certificate before work starts.

These targeted compliance rules help ensure genuine vacancies are filled appropriately within the sponsorship system.

How to Avoid a Home Office Audit 

There is no way to completely avoid a Home Office audit. The government are increasing audits, inspections and investigations into visa sponsors. 

However, there are ways to make every audit as smooth as possible. 

But first:

What is a Home Office audit?

The Home Office inspects businesses before and after they receive their sponsor license to evaluate whether the business has the financial resources and HR systems necessary to comply with UKVI regulations. Sometimes these audits are unannounced, so it’s good to be prepared. 

How to prepare for an audit

Proper audit prep will put you in the best possible position. When you receive a notification from the Home Office, you must: 

• Ensure all key SMS officers will be on-site
• Review HR files (and keep them with you) to ensure complete compliance
• Check that the Sponsorship Management System has been updated
• Consult legal advice
• Carry out a mock audit to spot any blind spots in your compliance program. 

Home Office audit triggers 

Home Office audits are usually triggered when a prospective visa sponsor applies for a sponsor licence. These are usually virtual audits, conducted online via video call. 

However, visa sponsors can trigger Home Office visits and inspections if the business:

• Operates in an industry at risk of employing illegal workers, like healthcare, hospitality and construction
• Changes ownership (merger or acquisition)
• Requests for allocation changes
• Or it doesn’t renew its sponsor licence after expiration. 

What UKVI compliance red flags do they look for? 

Whether it’s a pre- or post-licence audit, the Home Office want to know whether the business:

• Is actively trading
• Has an adequately trained staff to carry out UKVI compliance duties
• Not passed on sponsorship costs to the worker
• Their salary meets the thresholds
• Has an appropriate number of migrant workers
• Their qualifications match the requirements
• And the sponsored worker is filling a genuine vacancy. 

In short, a red flag is anything that points to a significant or systematic failing in a business’s general sponsorship responsibilities, whether illegal employment or simply poor record-keeping.

What happens during a UKVI compliance audit? 

Whether during a pre-licence audit or a post-licence audit, Home Office officials will

• Interview the Authorising Officer and Key Contact
• Request evidence of recruitment practices and HR systems like Right to Work checks, passports and employment contracts
• Scrutinise financial documents like bank statements. 

Afterwards:

• They may request additional documents
• They will verify whatever documents you submitted 
• Cross-reference data with other official bodies like HMRC or local councils
• Draw up a report
• Contact you if there is evidence of noncompliance.

How long does a Home Office audit usually take? 

According to the Home Office, on-site or virtual visits usually take two to three hours, but sometimes they take longer, depending on the business’s size and the number of migrant workers. 

What is the difference between a pre-licence audit and a post-licence audit? 

The only difference is that one is held before you’ve been given a sponsor licence, the other after. Both involve scrutinising whether a business has the financial resources and HR systems necessary for UKVI compliance, and is compliant with Home Office regulations. 

Consequences of UKVI non-compliance

UKVI noncompliant businesses face increasingly strict punishments, including: 

• Sponsor licence suspension or licence revocation
• Reduce Certificate of Sponsorship (CoS)
• Downgraded licence rating to B
• £60,000 fine per illegal worker.

New UK Immigration Rules for Sponsors

The UK’s immigration rules underwent some significant changes in 2025. Here’s what sponsors need to stay aware of to remain compliant.

eVisa

From December 31, 2024, all overseas employees must use eVisas – aka, secure online records of their immigration status. 

With an eVisa, you can:

• Generate a share code
• Prove their Right to Work on the ‘View and Prove’ UKVI online service portal
• Failure to do so results in a £60,000 fine per worker

As the Home Office report noted, a concerningly large number of businesses still verified their employees’ immigration status manually.

Employers pay sponsorship costs

Under the new rules, the businesses that rely on immigration must pay for the cost of sponsoring them, and not pass on those costs to the employee. 

This means businesses must pay: 

• Certificate of Sponsorship (£525)
• Immigration Health Surcharge (£1,035 p/a)
• Skilled worker application fees (£551-1,420, depending on the duration and ISL discount). 

New salary thresholds 

Make sure your workers are UKVI compliant by paying them in line than the new minimum salary thresholds, which were updated in April 2024:

• £38,700 (or the ‘going rate’ for that job, whatever is higher)
• £30,960 (for the Immigration Salary List, complete with stricter compliance requirements). 

Care Worker Recruitment Requirement

From April 9, 2025, sponsors must normally engage with their ‘regional care partnership’ and attempt to recruit from the ‘displaced worker pool’ before sponsoring new care workers to work in England. 

Evidence of this engagement and the outcome must be provided, though exceptions apply if the worker is already in the UK under specific conditions.

Make Compliance Proactive

Stricter immigration controls mean UKVI compliance is no longer something that can wait – it must be embedded within existing HR systems. Otherwise, businesses will find themselves scrambling during unannounced audits. 

De-risk yourself – talk to our immigration compliance experts today.

Frequently Asked Questions (FAQs)

What is the distinction between a Defined and Undefined Certificate of Sponsorship (CoS)?

Defined CoS are for overseas applicants applying from outside the UK. Employers must request these individually via the sponsorship management system (SMS). 

Undefined CoS, on the other hand, are for workers already in the UK (such as visa extensions or changes of employment). Employers are allocated a set number of these each year.

This distinction ensures proper use of CoS based on the worker’s location.

What are the specific requirements for Right to Work checks for different nationalities or visa types?

Employers must conduct Right to Work checks before employment begins. The process depends on the worker’s status:

• UK and Irish nationals: Passport or national ID card.
• EU/EEA nationals (post-Brexit): Evidence of immigration status (e.g., via the Home Office online service).
• Non-UK nationals: Biometric Residence Permit (BRP), share code (online check), or visa vignette.

Employers must retain records of these checks to show compliance in case of a UKVI audit. 

Can a sponsored worker work from home, and what are the associated reporting requirements?

Yes, sponsored workers can work from home. However, you must report any change to their main work location (such as a permanent switch to homeworking) via the SMS within 10 working days. It’s also good practice to confirm that homeworking arrangements don’t breach any sponsorship or compliance obligations.

How long does it typically take to obtain a sponsor licence, and what are the initial audit requirements?

Processing times for a sponsor licence application are generally eight weeks, though priority services may shorten this to 10 working days. UKVI may conduct a compliance visit to ensure you have the required HR systems in place to meet sponsorship obligations before or after approval.

Please note that this article does not constitute legal advice. Always consult with a legal expert to ensure compliance.