Scale Up Sponsor Licence
The Scale Up Sponsor Licence is a permit that allows certain employers to hire skilled workers from other countries under the Scale Up route. Unlike the fully sponsored Skilled Worker visa, this route has less strict sponsorship requirements, lasting only for the first six months of employment.

This route is tailored for employers showing consistent high growth, letting them bring in highly skilled foreign workers for UK job roles. This sponsorship is crucial for UK businesses aiming to expand further.

At Hilltop Solicitors, we can guide you through the Sponsor Licence application process, helping gather and submit all the needed documents. We'll also ensure you meet your ongoing duties as a sponsor when hiring overseas workers. Don't hesitate to contact us for expert help in navigating the Scale Up route's complexities.

Below, we answer some common questions about applying for a scale-up sponsor licence, including which organizations can apply.

What is the Scale Up Sponsor Licence?
The Scale Up Sponsor Licence is the authorization granted by the Home Office to a UK-based business, allowing them to recruit and sponsor a migrant worker under the Scale Up route. This license enables the business to issue a valid Certificate of Sponsorship (CoS) to the worker, who can then apply for a scale up visa to work in the UK within their sponsored role. However, to be eligible for a scale up visa, the migrant worker must first receive a job offer from a qualifying UK scale up sponsor for a highly skilled position.

To qualify for the scale up visa, the worker must possess the skills necessary for the continued growth of the business. This means they must work in a job that meets the required skill and salary level for a minimum period of six months. The job role offered should be at graduate level or above, with a minimum salary of £33,000 per annum until 11 April 2023, or £34,600 from 12 April 2023, or the higher of the two based on the going rate for that job. Additionally, the migrant worker must meet an English language requirement and fulfill a financial requirement.

In summary, the Scale Up Sponsor Licence grants UK businesses the ability to recruit and sponsor highly skilled migrant workers under the Scale Up route. This allows businesses undergoing sustained high growth to access overseas talent, while ensuring that the workers meet specific skill, salary, English language, and financial criteria.

Who can sponsor a scale up worker?
To sponsor a Scale Up worker, an organization must meet the criteria of a "qualifying scale up sponsor." This designation is reserved for organizations that are experiencing sustained high growth and have been approved by the UK Home Office to recruit overseas nationals for highly skilled job roles in the UK.

There are two ways in which an organization can meet the definition of a qualifying scale up sponsor:

Standard Pathway: Under this pathway, UK Visas and Immigration (UKVI) will automatically assess the organization's employment growth and/or turnover growth based on information previously submitted to HM Revenue and Customs (HMRC).

Endorsing Body Pathway: Alternatively, an organization can qualify through the endorsing body pathway. In this case, a Home Office-approved endorsing body will need to provide written confirmation of the organization's eligibility to apply for a scale up sponsor licence.

Both pathways offer avenues for organizations to demonstrate their eligibility as a scale up sponsor and gain the ability to recruit skilled migrant workers under this route.

Scale Up Sponsor Licence: General Requirements
In order to qualify for a Scale Up visa, an overseas national must have a high-skilled job offer from a qualifying Scale Up sponsor at the required salary level for a minimum of 6 months, as evidenced by their Certificate of Sponsorship (CoS). Eligible overseas nationals can apply from overseas or switch from another visa route within the UK, except for those who were last granted permission as a visitor, short-term student, parent of a child student, seasonal worker, or domestic worker in a private household. The latter group will need to leave the UK and apply for entry clearance from overseas.

To be granted a Scale Up sponsor licence, the UK-based business must fulfil various general requirements. These include being a genuine organization that operates lawfully in the UK and has a record of honesty, dependability, and reliability, without engaging in behaviour or actions detrimental to the public good. The business must also demonstrate its ability to carry out sponsor duties and provide evidence of compliance.

The assessment of the applicant's honesty, dependability, and reliability involves examining the history and background of the business, as well as the key personnel named in the application and those involved in its day-to-day operations. These key personnel, responsible for managing migrant workers, will have access to the Home Office sponsorship management system (SMS) after the grant of a Scale Up sponsor licence.

To evaluate the applicant's capability to fulfil sponsor obligations, the business must have appropriate human resources and recruitment practices in place. In some cases, a pre-licence compliance check may be conducted prior to granting the licence.

Scale Up Sponsor Licence: Specific Requirements
In addition to the general sponsor licence requirements, obtaining a Scale Up sponsor licence requires a business to meet specific criteria in order to be eligible. The business must be capable of offering genuine employment to a migrant worker that meets the minimum skill-level and salary requirements for this route, while also qualifying as a Scale Up sponsor. To qualify, the business must meet the following criteria:

• It must have achieved an annualized growth rate of 20% or more over the previous three-year period, based on either the number of people employed or the turnover.
• It must have had a minimum of 10 employees at the beginning of the relevant three-year period.

A Scale Up sponsor licence application will be rejected if:
• The details provided in the licence application cannot be verified against HMRC records, and confirmation of the business's solvency cannot be obtained.
• The business does not have a minimum of 37 months of history with HMRC.
• The business did not have at least 10 employees at the start of this 37-month period.
• There are gaps, i.e., periods without data, within the 37-month assessment period.

If the applicant satisfies all the aforementioned requirements, automated checks will then assess whether the business meets the specific criteria for employment or turnover growth. If the business fulfills either of these checks, it will pass the Scale Up assessment. However, it remains the responsibility of the applicant to ensure the accuracy, currency, and completeness of their records with HMRC. Failure to address any gaps in the records is likely to result in a failed Scale Up assessment.

Scale Up Sponsor Licence: Standard Pathway
To qualify for a scale up sponsor licence under the standard pathway, you must be able to show an annualised growth in your business of at least 20% for the 3-year period prior to your application based on either employment, ie; your staff count 'or' your turnover. You must also have employed a minimum of 10 staff at the start of this 3-year period.

When determining your sponsor licence application, UKVI will securely access your PAYE information and/or VAT return information submitted to HMRC, using this data to automatically assess whether or not you meet the standard pathway definition.

Scale Up Sponsor Licence: Endorsing Body Pathway
The endorsing body pathway is for prospective Scale Up employer applicants who do not meet the sponsor licence eligibility requirements, for example, if their HMRC records do not cover a sufficient period of time.

As an alternative, prospective sponsors will be able to obtain endorsement from a Home Office-approved endorsing body and can submit this with their licence application, which must be made no more than three months from the date of endorsement.

Only organisations authorised to act as endorsing bodies can provide the required endorsement. These organisations, as listed on the Home Office website, are:

• Envestors Limited
• UK Endorsing Services
• Innovator International
• The Global Entrepreneurs Programme (GEP)

To qualify for a scale up endorsement, you must:

• Have a track record with HMRC of no more than 4 years.
• Be solvent entity actively trading in the UK.
• Make sure you're registered for VAT
• Hold a corporate bank account registered in the UK.
• Have a minimum of 10 employees who contribute taxes and National Insurance via a PAYE scheme through your company.
• Show that your business is growing steadily and could qualify as a scale-up sponsor within 4 years.
• Have adequate financial resources / funds in place to pay your employees well for the jobs needed in the scale-up route.


You must also meet a minimum of three out of the following five criteria:

• Growth: be able to show more than 20% growth in either turnover or employment per year over a 2-year period
• Participation in a relevant government programme and/or receipt of relevant government funding: have participated in a recognised scale up programme, have
received a recognised loan or grant 'or' have participated in the small business research initiative
• Finance: have raised at least £1 million in equity finance within a single round in the 12 month period immediately prior to the date of application to the endorsing
body
• International: have global offices and/or operations 'and' be generating a threshold of at least 10% of turnover from exports
• Research and development expenditure: be spending 10% of your overall operating costs each year for 3 years on research and development 'or' 15% in one of the
last 3 years.

How to apply for a Scale Up Sponsor Licence
To apply for a scale up sponsor licence, an application must be made by completing the online application form and paying the relevant application fee to UK Visas and Immigration (UKVI), the section of the Home Office responsible for the UK's visa system.

The scale up route is classified as a 'Temporary Worker' route for sponsor licensing purposes, where you will pay the standard Temporary Worker fee to apply for a sponsor licence or to assign an CoS to a prospective new worker. The fee to apply for a scale up sponsor licence is £536, while the fee to assign an CoS is just £21 for each worker.

Importantly, you will have to pay an additional fee to any endorsing body if applying under the endorsing body pathway. However, there is no Immigration Skills Charge for this route.

The prospective sponsor will first need to register online by giving UKVI a name and email address. Once registered, a user ID will be displayed which can be used to log on to the licence application system, together with a password which will be sent separately by email.

A scale up sponsor licence applicant will not normally need to send any documents in support of their application, but when completing the online form, the prospective sponsor will need to provide UKVI with the following information:

• any Companies House reference number, if the business is required to be registered with Companies House, and/or its Unique Taxpayer Reference (UTR) number
• any VAT registration number
• all relevant PAYE reference numbers through which the business pays its employees.

The provision of all PAYE reference numbers, including any settled or unsponsored workers, is required for both the necessary employment growth and turnover growth assessments. These are automated checks to confirm that the business has had at least 10 employees at the start of the three-year assessment period and whether the employment count has increased by at least 20% for this three-year period. Any failure to provide all relevant PAYE reference numbers is likely to result in an application being delayed or even refused.

If the business is subject to mandatory registration or inspection by a regulatory body, so as to operate lawfully in the UK, checks will also need to be made that the business is registered. This could include, for example, nursing or care homes regulated by the Care Quality Commission, or financial businesses regulated by the Financial Conduct Authority.

In most cases, UKVI will be able to check this information online, without the need for any documentation to be sent in support of the licence application. However, in some cases, the prospective applicant will need to provide evidence of registration and inspection.

If a UK-based business already holds a valid licence to sponsor workers, an application can be made to add the scale up route to that licence. If applying to be licensed on another route at the same time, the applicant will need to submit documents relevant to that route.

How long does the Scale Up Sponsor Licence last?
The Scale Up sponsor licence, like other sponsored work routes, is valid for a period of 4 years, unless surrendered or revoked before then. However, it cannot be renewed beyond the 4-year mark. If you wish to continue sponsoring overseas workers after this period, you will need to apply for a licence under another route, such as the Skilled Worker route.

How much does a Scale Up Sponsor Licence cost?
The Scale Up immigration route is categorized as a "Temporary Worker" route for sponsor licensing purposes. As such, prospective sponsors are required to pay the standard Temporary Worker fee of £536 (from Nov 2022) when applying for a sponsor licence. For those seeking expedited processing of their application, the priority service is available at an additional cost of £500.

Costs Associated with the Scale Up Route: When assigning a Certificate of Sponsorship (CoS) on the Scale Up route, a Scale Up sponsor is only required to pay the Temporary Worker fee of £21, with no Immigration Skills Charge applicable. However, a UK sponsor may choose to cover the application costs for prospective new recruits to facilitate their Scale Up visa application. The visa application itself carries a fee of £715, an annual healthcare surcharge of £624 to access the NHS, and a requirement to provide proof of personal savings amounting to £1,270. It's worth noting that the sponsor can certify the maintenance funds on behalf of the applicant.

Scale up worker visa requirements:
The scale up route is your key to growth, and we're here to guide you through the process. But first, let's dive into the requirements for a scale up worker visa requirements:

1. Skill-Level Job Offer: Your worker must have a genuine job offer at the required skill-level, typically graduate level or above.
2. Competitive Compensation: Ensure your worker is paid a minimum of £34,600 per annum or the 'going rate' for the occupation code, whichever is higher.
3. Commitment: Your worker should be prepared to for your business in the UK for a minimum of 6 months.
4. Language Proficiency: The worker must speak, understand, read, and write English at the required minimum standard (level B1 or above on the CEFR).
5. Financial Security: they have sufficient funds upon arrival in the UK (i.e., £1,270).

To successfully sponsor a scale up worker, it's crucial that the employment you offer is not only skilled and well-compensated but also genuine and compliant with third-party working rules. Under the 'genuineness' requirement, UKVI will not award points for sponsorship if it has reasonable grounds to believe that the job role does not exist, is a sham, or has been mainly created so that the migrant worker can apply for entry clearance or permission to stay.

To be granted a scale up visa, an overseas worker must accumulate a total of 70 points. This comprises 50 points for valid sponsorship in a genuine job role that meets the appropriate skill-level and salary. The remaining 20 points will be awarded for meeting the English language requirement (10 points) and the financial requirement (10 points).

Are there are restrictions with scale up sponsorship?
If you intend to sponsor a scale-up worker, it is essential to hold a valid scale-up sponsor licence. Additionally, you must ensure that the worker meets the immigration requirements for this route. It is important to note that you can only sponsor workers who are engaged in genuine employment that satisfies the relevant skill-level and salary requirements. Once you have met all these conditions, you will be able to assign a valid sponsorship certificate to sponsor a scale-up worker.

However, it is crucial to comply with the rules on third-party working. This means that you cannot assign a Certificate of Sponsorship (CoS) to a migrant worker for a job role that involves either:
• Hiring the worker to a third party who is not the approved sponsor, whether on a temporary or permanent basis, or
• Undertaking contract work to perform an ongoing routine role or provide an ongoing routine service for a third party who is not the approved sponsor, regardless of
the nature or duration of the arrangement between the sponsor and third party.

Furthermore, when sponsoring a scale-up worker, it is essential to ensure compliance with the UK's National Minimum Wage Regulations 2015 and the Working Time Regulations 1998.

How long you can stay and what happens after 6 months?
When a worker is sponsored through the scale-up route and successfully obtains a visa, they are initially granted permission to work in the UK for a period of 2 years. However, the sponsoring employer will only sponsor the worker for the first 6 months of their permission.

After the initial 6 months, the sponsoring employer will no longer be responsible for sponsoring the worker, even if they continue to employ them. The worker can choose to stay with their original employer without requiring renewed sponsorship. Alternatively, they have the freedom to change jobs or even employers without needing sponsorship, as long as they continue to meet the relevant requirements of the scale-up route.

For the original sponsor, this transition can be costly, as they have likely invested significant time and resources in acquiring the scale-up sponsor license and recruiting a migrant worker. Consequently, it is often in the sponsor's interest to provide incentives for the worker to remain with them. This is one of the major challenges faced by sponsors when recruiting scale-up workers.

However, there is a positive aspect to this arrangement. If the worker continues to work for their original employer beyond the initial 6 months, the employer will no longer have sponsorship duties moving forward. Therefore, compliance with reporting duties, such as informing UKVI about absences without permission, significant changes to the worker's role, salary, or business, is only required during the first 6 months.

At the end of the initial 2-year visa granted under the scale-up route, the migrant worker has the option to make an unsponsored application. If approved, they can continue their stay in the UK under this route for an additional 3 years.

Importantly, there is no limit to the number of times the worker can apply to extend their stay beyond the initial 2-year period. After 5 years of lawful continuous residence in the UK on the scale-up route, or even in combination with other eligible routes, the overseas worker becomes eligible to apply for permanent settlement in the UK, commonly known as indefinite leave to remain.

Sponsor Licence Compliance Duties
As a holder of a scale-up sponsor licence, there are several important sponsorship responsibilities that must be fulfilled. These duties include promptly informing UKVI of the date when a sponsored scale-up worker actually starts working for the business. This can be done by logging into the Home Office SMS account and using the "Report migrant activity" function.

Throughout the period in which the licence holder has sponsorship responsibility for the worker in the UK, they must also notify UKVI if the worker fails to commence employment, is absent from work without permission, or if there are any significant changes to the worker's role, salary, or to the sponsor organization itself. However, as long as the worker's salary continues to meet the minimum requirement for their job role, there is no need to assign a new Certificate of Sponsorship (CoS) or for the worker to submit a new application for permission. On the other hand, if the worker's salary falls below the required minimum rate and no exceptions apply, the sponsor must cease sponsorship and inform UKVI of this decision via the SMS account within 10 working days.

Additionally, the sponsor must maintain records for each scale-up worker they sponsor, typically for a minimum of one year from the end date of sponsorship. Failure to fulfill these or any other sponsorship duties may result in the revocation of the sponsor licence by UKVI.

The sponsorship responsibilities for each sponsored worker commence on the date when the sponsor assigns a CoS to the worker and continue while the worker's application for entry clearance or permission to stay is being processed. If the worker is granted permission under the scale-up route, they will be authorized to stay in the UK for two years, although the sponsor's responsibilities will only endure for the first six months of the worker's permission.

The six-month period of sponsorship responsibility is calculated in calendar months from the "valid from" date on the worker's visa or from the date they are notified of being granted permission to stay. For example, if a scale-up worker is granted entry clearance valid from December 1, 2022, the sponsorship responsibilities will extend until 11:59 pm on June 1, 2023.

Upon the conclusion of the six-month period, the scale-up sponsor will no longer be considered the sponsor of the migrant worker, even if the worker continues to work for the business. No action is required, as sponsorship responsibility for that worker will automatically cease. The worker can continue their employment with the existing employer or former sponsor in the same or different role, or they can even switch employers, without the need for a new application for permission, as long as they continue to meet the route requirements.

There are, understandably, concerns and challenges associated with the six-month rule for scale-up sponsors, particularly regarding staff retention. Employers may be hesitant to invest time and resources in recruiting highly skilled workers to support their business growth, only to have those employees leave for other opportunities after six months. However, once a business obtains a scale-up sponsor licence, it remains valid for four years, during which the business can sponsor additional scale-up workers.

It is important to note that unlike most other sponsored work routes, a scale-up sponsor licence cannot be renewed beyond four years. The scale-up route was not intended to serve as a long-term solution for sponsoring migrant workers but rather to assist UK-based businesses in accessing a broader talent pool during a critical stage of their growth. To continue sponsoring migrant workers beyond this period, the licence holder will need to obtain a licence under another route, such as the Skilled Worker route.

Seeking Guidance for International Recruitment?
Look no further! Hilltop Solicitors are your go-to UK business immigration specialists. Our team of experts is dedicated to helping employers fulfil their talent requirements through international recruitment. Whether you need assistance with sponsoring workers under the Scale Up route or guidance on making Scale Up Sponsor Licence applications, we've got you covered.

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