Are you a “small company” holding a sponsor licence? Recent changes may affect you.

If you run a “small company” and hold a sponsor licence issued by the Home Office, the following information may be important to you.

Small companies benefit from reduced fees when applying for a sponsor licence and when paying the Immigration Skills Charge in connection with their sponsored workers’ visa applications.

The definition of a “small company” changed on 6th April 2025. Under section 382 of the Companies Act 2006, a company qualifies as small if it meets at least two of the following criteria:

1. TurnoverNot more than £15 million
2. Balance sheet totalNot more than £7.5 million
3. Number of employeesNot more than 50

What has changed is the turnover and balance sheet thresholds, whereby the turnover threshold was previously £10.2 million, and the balance sheet total was £5.1 million.

Please note that if, as a result of this change to the definition of a “small company,” your organisation’s classification has changed, from small to large, or vice versa, you must notify the Home Office within 20 working days via the Sponsor Management System. This is required to remain compliant with your sponsor reporting duties.

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