UK employers holding a sponsor licence are legally required to report specific employee and company-related information to the Home Office using the Sponsorship Management System (SMS). Accurate and timely reporting is critical to maintaining compliance, avoiding penalties, and protecting your sponsor licence.
This blog explains what documents must be reported, when to report them, and how to stay compliant.
What Is the Sponsorship Management System (SMS)?
The Sponsorship Management System (SMS) is the official online platform used by licensed sponsors to manage sponsored workers. Through SMS, employers can:
- Assign and manage Certificates of Sponsorship (CoS)
- Report changes to sponsored employees
- Update company details
- Upload and confirm compliance-related information
You can access the official system guidance directly from the Home Office here:
Sponsorship: guidance for employers and educators - GOV.UK
Reporting Employee-Side Documents via SMS
Sponsors must report changes or issues relating to sponsored employees, including:
Key Employee-Related Reports
- Non-attendance on the first day of work
- Unauthorised absences (usually 10 consecutive working days)
- Changes in job role, salary, or work location
- Early termination of employment
- Changes to working hours or contract type
Supporting Employee Documents
While documents are not always uploaded directly, sponsors must retain evidence such as:
- Employment contracts
- Updated job descriptions
- Absence records
- Payslips and salary change confirmations
Failure to report employee-related changes within the required timeframe (usually 10 working days) may result in compliance action.
Reporting Company-Side Documents via SMS
In addition to employee updates, sponsors must report significant business changes.
Company Changes That Must Be Reported
- Change of business address
- Company name or ownership changes
- Mergers, acquisitions, or TUPE transfers
- Insolvency or cessation of trading
- Change in key personnel (Authorising Officer, Level 1 User)
Supporting Company Documentation
Sponsors should keep up-to-date records such as:
- Companies House filings
- Lease agreements
- Organisational charts
- HMRC PAYE documents
These documents must be readily available in case of a Home Office compliance audit.
Why Accurate SMS Reporting Matters
Failing to report employee or company changes correctly can lead to:
- Sponsor licence downgrade
- Suspension or revocation of licence
- Civil penalties
- Inability to sponsor overseas workers
Consistent record-keeping and proactive reporting demonstrate compliance and reduce the risk of enforcement action.
How Sponsicore Helps Sponsors Stay Compliant with SMS Reporting
Managing sponsor duties manually can be time-consuming and risky, especially when document changes are missed or reported late. This is where Sponsicore plays a crucial role in supporting sponsors.
Automated Change Notifications
Sponsicore actively monitors employee-side and company-side documents stored within the system. Whenever a sponsor or HR user makes a change to a document that may require reporting to the Home Office via the Sponsorship Management System, the platform automatically:
- Detects the change
- Identifies whether it is reportable under sponsor duties
- Sends an instant notification to the sponsor
This ensures no critical update is overlooked.
Centralised Compliance Tracking
By keeping all employee and company documents in one secure place, Sponsicore allows sponsors to:
- Track historical changes to documents
- Maintain a clear audit trail
- Demonstrate compliance during Home Office audits
This level of transparency is particularly valuable during unannounced compliance visits.
Reduced Risk of Licence Downgrade or Revocation
Late or missed SMS reports are one of the most common reasons sponsors face enforcement action. Sponsicore’s proactive notification system helps sponsors:
- Meet Home Office reporting deadlines
- Maintain an “A-rated” sponsor licence
- Protect their ability to hire and retain sponsored workers
Why Technology-Led Compliance Matters
With sponsor duties becoming increasingly scrutinised, relying on spreadsheets or manual reminders is no longer enough. A smart compliance platform like Sponsicore acts as an early warning system, ensuring sponsors are informed the moment a reportable change occurs.
Final Takeaway
Reporting employee-side and company-side documents via the Sponsorship Management System is not optional—it’s a core sponsor duty. Staying organised, informed, and proactive ensures your business remains compliant and protects your ability to employ global talent in the UK.
While the Sponsorship Management System is the official reporting tool, Sponsicore bridges the gap between document management and SMS compliance. By automatically notifying sponsors of reportable changes, it empowers businesses to stay compliant, confident, and audit-ready at all times.