UK Immigration Lawyers 2025 Update on the Self-Sponsorship Visa
On 31 December 2024, the Home Office published an updated version of its guidance for applicants for sponsor licences. The new guidance says that a sponsor licence must not be used to sponsor workers in a personal capacity.
In this article, our Immigration Solicitors in London explain what the new guidance means for sponsor licence applicants looking to provide sponsorship for a Self-Sponsorship Visa.
Spoiler alert: the Self Sponsorship Visa is not banned.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For Self-Sponsorship Visa and sponsor licence application advice call OTS Solicitors on 0203 959 9123 or contact us online.
The updated Home Office Guidance
The updated Home Office Guidance containing the reference to Self-Sponsorship Visas is:
‘’Workers and Temporary Workers - guidance for sponsors part 1: apply for a licence’’
The full guidance can be found here.
Prohibition on sponsoring workers in a personal capacity
The updated Guidance says sponsor licences must not be used to sponsor workers in a personal capacity. There is a new sponsor licence refusal ground where a sponsor licence applicant intends to use the licence to sponsor an overseas worker in a ‘personal capacity.’ This amendment has understandably made some licence applicants question whether they can apply for a Self-Sponsorship Visa or continue to work on a Self-Sponsorship Visa.
The rule change or clarification does not ban self-sponsorship but it confirms the previous rule that individuals cannot apply to be a sponsor as an individual. The applicant for a sponsor licence needs to be a company, partnership or sole trader. A sole trader is an individual who is running a business as distinct from an individual who is applying for a sponsor licence in a personal capacity.
Applying for a sponsor licence in a personal capacity
The updated Guidance says a sponsor licence application will be refused if the application is not from a sole trader but by an individual who isn’t in business. The Guidance covers:
- A person or household who wishes to employ or engage a worker, or workers, in a personal capacity and the sponsor licence applicant is not otherwise conducting business or providing a service in the UK or
- Where the sponsored worker will be employed by, or engaged for the personal benefit of, an individual who works for your organisation, or a close relative or partner of that individual, and the role is unrelated to your organisation’s wider activities
Using an example, what the amended Guidance makes clear is that a sponsor licence application will be refused if:
- You are not in business but you apply for a sponsor licence so you can sponsor a nanny, private nurse or chef or other personal capacity worker for your household
- You do have a company or you are a sole trader and you apply for a sponsor licence or use your existing sponsor licence to sponsor someone who won't be working for your company but for your household or the household of your partner or close relative
In other words, you can't apply for a sponsor licence to sponsor your nanny or other person employed in a personal capacity, even if you are doing it through your company.
Existing employees sponsored in a personal capacity
The updated Guidance says:
‘’If you have, or are granted, a sponsor licence, you must not use your licence to sponsor workers in a personal capacity as defined above. If we find you have done this, we will normally revoke your licence. If you have previously been permitted to sponsor workers in a personal capacity, you must not assign any further Certificates of Sponsorship to sponsor workers on this basis’’.
If you are concerned that your sponsorship of an employee breaches the Guidance then speak to our Sponsorship Licence Lawyers for advice on the rules and the steps you need to take.
Implications if you don’t follow the updated Guidance
The updated Guidance makes it clear that if you employ someone as a sponsored worker in a personal capacity this will normally result in the revocation of your sponsor licence. The implications of sponsor licence revocation are:
- You will no longer be able to sponsor any overseas workers
- You will be prevented from applying for another sponsor licence during the cooling-off period
- Your sponsored workers will need to leave the UK or secure a different type of visa
- Your immigration record will be affected
- If you did not carry out the correct right-to-work checks on any sponsored workers you could face Civil Penalty Notices and large fines
The Self-Sponsorship Visa
Although some in the media have referred to the amended Guidance ending the Self-Sponsorship Visa it doesn’t do so, provided you follow the rules.
This means you can still apply for a sponsor licence and a Self-Sponsorship Visa if you are a sole trader (rather than an incorporated company or partnership). However, your Business Lawyers or accountant may advise you to operate your business within a corporate structure rather than as a sole trader. So, it is best to get legal advice on the business structure before you apply for your sponsor licence.
If you are setting up a start-up company with a view to securing a sponsor licence and Work Visa it is sensible to get specialist sponsor licence legal advice on how best to secure your visa and how to comply with the diverse range of legal issues you need to consider even with self-sponsorship, such as:
- Right-to-work checks
- Employment contract
- Pension set up
- HR policies to ensure your company meets all its sponsor licence reporting and recording duties
Our Immigration Solicitors in London can answer your questions on the self-sponsorship route. If you are interested in a Self-Sponsorship Visa our specialists can talk you through the application process.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For Self-Sponsorship Visa and sponsor licence advice call OTS Solicitors on 0203 959 9123 or contact us online.
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