The Home Office is taking proactive steps to remove inactive sponsors from the register of licensed sponsors. Sponsors wishing to keep their licence must take reasonable steps to keep their accounts active, including logging into the Sponsorship Management System (SMS) regularly and always having at least one active Level 1 User.
Introduction: what's happening
Following changes to Part 1 and Part 3 of the sponsor guidance in August 2026, the Home Office is now emailing 'inactive sponsors', i.e. sponsors who have held a licence for more than 12 months and have either never sponsored a worker, or whose last sponsored worker's Certificate of Sponsorship work end date was more than 12 months ago. These licences are at risk of revocation.
The August 2026 changes to Part 1 of the sponsor guidance (Key Personnel and SMS Users)
On 28 August 2026 the Home Office updated Part 1 of the sponsor guidance to include an intention to remove inactive SMS User accounts from licences, stating that sponsors may lose their licence if they don't check and update their SMS Users' details. There is also a new general requirement that SMS Users access their account regularly and keep their details up-to-date.
If an inactive Level 1 User is identified, the Home Office will contact the Authorising Officer and the user with instructions. To continue to have access to the SMS, the Level 1 User must log into their account and check their details within three months of the date they are contacted. Inactive Level 2 Users will not be contacted directly; it' the responsibility of the sponsor licence holder to identify inactive users and update or correct their details if needed.
Failure to take necessary action within three months of contact will lead to the inactive SMS User accounts being deactivated. If there are no remaining active Level 1 Users, the licence will be suspended, and the sponsor will have 28 days to nominate an eligible Level 1 User. Failure to do this will normally lead to revocation of the licence.
The August 2026 changes to Part 3 of the sponsor guidance (sponsor duties and compliance)
In parallel, Part 3 of the sponsor guidance was updated so that the cooling-off period on applying for a new sponsor licence won't apply where the sole reason for revocation is the inactive SMS User account process. Applying for a new licence does however require a fee and meeting the requirements in force at the time.
Options for inactive sponsors
If your sponsor licence is inactive, you choose to surrender it, which can be done quickly on the SMS. A Level 1 User must make the request and send the required documents to the Home Office. If there is no active Level 1 User, the sponsor change of circumstances form should be used. The Authorising Officer must sign the surrender declaration. The licence fee is not refunded, and a fresh application would be required if you wish to become a sponsor again.
If you wish to keep your licence but don't sponsor any workers, the Home Office will continue to monitor SMS activity and all sponsor duties will remain in place. If at any point no active users remain following the Home Office deactivating inactive users, the licence will normally be revoked.
Need more information?
If you have any specific queries about these changes or other SMS-related matters, a member of key personnel on your sponsor licence can request assistance from the Home Office's Business Helpdesk at BusinessHelpdesk@homeoffice.gov.uk.
If you need more help with applying for or maintaining a sponsor licence, please contact a member of our Immigration Team.
