Updated SMS Requirements: Implications for Sponsor Licence Holders

By Sanwar Ali:

The Home Office has recently implemented important changes to the Sponsorship Management System (SMS) updating requirements for employers with a sponsor licence. These changes have an impact on businesses that hold a sponsor licence to sponsor overseas workers say under the Skilled Worker visa category. It is crucial for employers and sponsors to stay informed about these updates to ensure compliance and avoid any negative consequences. In this article, we will provide a comprehensive overview of the recent changes, discuss their implications for businesses, and outline the steps that employers and sponsors can take to comply with the new requirements, and provide examples of how the new requirements may be applied in practice.

1. National Insurance Numbers for Key Personnel

As of 8th October 2023, when replacing the Authorising Officer (AO) or Key Contact (KC) on a sponsor license, their National Insurance number (NINO) must be provided. If there are any changes to the current AO or KC details in the SMS, their NINO must be provided if not already done so. Level 1 users are also subject to this requirement, as I implemented a similar process earlier this year.

If the AO or KC does not have a NINO, they will be asked to provide reasons for not having one and may be required to provide evidence that they have applied for a NINO. It is essential to provide valid reasons or evidence, as failure to do so may affect the outcome of the request.

1.1 Proactive NINO Updates

Employers and sponsors have the option to proactively update the SMS with the NINOs of their existing AO, KC, and Level 1 users. However, it is important to note that NINO-related information does not need to be provided unless there is another update required.

NINO updates will be made immediately and automatically in the SMS, unless there are other changes to details that are not eligible for automatic updates.

2. Companies House Reference Numbers

Another recent change introduced by the Home Office is the requirement for sponsors registered with Companies House to provide their Companies House reference number (CHN) via the SMS. Companies House records are publicly available, and the Home Office conducts checks with Companies House when considering sponsor requests. Providing the CHN will facilitate more effective checking and help the Home Office with their checks.

2.1 Adding the CHN

Sponsors registered with Companies House should add their CHN via the SMS process for amending their organization's details. Changes to the CHN in the SMS will be made immediately and usually without the Home Office doing checks.

It is recommended that sponsors proactively update the SMS with their CHN at the earliest convenience to ensure efficient processing of sponsor requests.

3. Implications for Businesses

These changes to the SMS updating requirements have several implications for employers and sponsors. It is important to understand the impact and take necessary actions to comply with the new requirements to avoid any negative consequences. The key implications include:

3.1 Compliance with Immigration Rules

Compliance with the SMS updating requirements is a condition of the sponsor license. Failure to provide the required information, such as NINOs or CHNs, may result in non-compliance with the immigration rules. This could lead to penalties, the suspension or revocation of the sponsor license, and potential disruption to business operations.

3.2 Efficient Processing of Sponsorship Requests

Providing accurate and up-to-date information, including NINOs and CHNs, will facilitate more efficient processing of sponsor requests by the Home Office. This will help minimize delays and ensure a smooth and timely process for sponsoring overseas workers.

3.3 Preventing Immigration Fraud

The requirement to provide NINOs and CHNs helps in verifying the identities of key personnel involved in the sponsorship process. This plays a crucial role in preventing immigration fraud and ensuring the integrity of the sponsor system.

4. Steps to Comply with the New Requirements

To comply with the new SMS updating requirements, employers and sponsors should take the following steps:

4.1 Verify Existing Information

Review the current information in the SMS for key personnel, including AOs, KCs, and Level 1 users. Ensure that NINOs and CHNs, where applicable, are accurately recorded.

4.2 Proactive Updates

Consider proactively updating the SMS with NINOs and CHNs for existing key personnel, even if there are no other updates required at the moment. This will help ensure compliance and avoid any potential issues in the future.

4.3 Communicate Changes Internally

Make staff members responsible for administering the sponsor license aware of the changes to the SMS updating requirements. Provide necessary guidance and instructions to ensure they understand the importance of providing NINOs and CHNs when required.

4.4 Keep Records Up to Date

Maintain accurate and up-to-date records of key personnel, including any changes to NINOs and CHNs. Regularly review and update the information in the SMS to ensure compliance with the new requirements.

5. Examples of Applying the New Requirements

To further illustrate the application of the new SMS updating requirements, let's consider two scenarios:

5.1 Scenario 1: Replacing an Authorising Officer

Suppose an employer needs to replace the Authorising Officer on their sponsor license. Under the new requirements, the employer must provide the NINO of the new AO when making the replacement. Failure to provide the NINO or valid reasons for not having one may impact the outcome of the request.

5.2 Scenario 2: Updating Key Contact Details

In another scenario, an employer needs to update the contact details of a Key Contact in the SMS. If the Key Contact's NINO has not been provided previously, it must be provided during the update process. The employer should ensure they have valid reasons or evidence if the Key Contact does not have a NINO to avoid any negative consequences.

6. Key Takeaways

In summary, the recent changes to the SMS updating requirements for employers and sponsors highlight the importance of providing National Insurance numbers (NINOs) for key personnel and Companies House reference numbers (CHNs) for sponsors registered with Companies House. Compliance with these requirements is crucial to ensure compliance with immigration rules, facilitate efficient processing of sponsor requests, and prevent immigration fraud.

Employers and sponsors should proactively update the SMS with NINOs and CHNs, verify and maintain accurate records, communicate changes internally, and seek professional assistance if needed. By taking these steps, businesses can navigate the complexities of the new requirements and ensure ongoing compliance with the immigration rules.

Remember to regularly access the online Sponsorship Management System (SMS) to stay informed about important updates and ensure compliance with the latest requirements.

How Workpermit.com Can Help with Sponsor Licences

If you need help with employing Skilled Workers and applying for a Sponsor Licence, including complying with your Sponsor Licence obligations, HR responsibilities, etc workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)