If your business holds a sponsor licence to employ overseas workers, a recent change in company size definitions could impact how much you pay for visa sponsorship – and whether you need to notify the Home Office.
As specialist UK immigration solicitors, we’re here to guide sponsors through these changes and help ensure compliance with all Home Office duties.
What’s Changed?
On 6 April 2025, the UK government updated the definitions of “small” and “large” companies under the Companies Act 2006 – and these definitions are what the Home Office uses to classify sponsors.
To now qualify as a small company, your business must meet at least two out of the following three criteria in a single financial year:
- No more than 50 employees (unchanged)
- A turnover of no more than £15 million (previously £10.2 million)
- A balance sheet total of no more than £7.5 million (previously £5.1 million)
These updated thresholds mean that some organisations previously considered “large” may now fall under the “small” sponsor category.
Why This Matters for Sponsor Licence Holders
The Home Office visa sponsorship fees are determined by the size of the sponsoring organisation. Being classified as a small sponsor can mean:
- Lower application fees for your sponsor licence
- Reduced Immigration Skills Charge when sponsoring Skilled Workers and employees under the Global Business Mobility route
In short, this change could lead to significant cost savings for eligible businesses.
What Should Sponsors Do Now?
As a licensed sponsor, you have a legal duty to keep the Home Office informed of changes to your business, including your company’s size classification.
Here’s what you need to do:
- Review your financials and headcount against the new thresholds.
- If your classification has changed, notify the Home Office within 20 working days via the Sponsor Management System (SMS).
- Be prepared to upload supporting evidence, such as recent company accounts or an updated organisational chart.
Failure to report changes can lead to serious consequences, including a downgrade, suspension, or revocation of your sponsor licence.
How Our Immigration Solicitors Can Help
At EA Law, we specialise in helping UK businesses navigate immigration law, including sponsor compliance and reporting duties. If you’re unsure whether your classification has changed or need assistance submitting updates through the Sponsor Management System, we’re here to support you every step of the way.
Contact us today on ukvisa@ealaw-solicitors.com for expert legal advice and tailored assistance with all your UK sponsorship and business visa needs.