How to Request and Renew CoS Allocation for Skilled Workers

In the UK, businesses looking to employ foreign nationals on certain work visas need to allocate Certificates of Sponsorship (CoS). The CoS is a digital document provided by licensed sponsors (employers) to each foreign worker they intend to hire. This document is crucial for visa applications, as it provides details about the job and employer, helping UK Visas and Immigration (UKVI) assess the visa request. Here’s a comprehensive guide to CoS allocation, covering types of CoS, allocation limits, and how employers can manage and request allocations.

Table of Contents

1. What is a Certificate of Sponsorship (CoS)?

A Certificate of Sponsorship (CoS) is an electronic record issued by a UK employer (licensed sponsor) to a foreign national they intend to hire. A CoS contains key details about the job and employee, including salary, role, and sponsor information. While a CoS doesn’t guarantee visa approval, it’s a crucial component of the visa application for work routes, such as the Skilled Worker Visa and Temporary Worker Visa.

Types of CoS:

Defined CoS: For skilled workers applying from outside the UK.
Undefined CoS: For skilled workers already in the UK, including those switching visas.

2. Importance of CoS Allocation

CoS allocation is the process by which the Home Office grants a licensed sponsor permission to issue a specific number of CoS to their foreign employees. This ensures that the organization can manage its sponsorship responsibly and within its legal obligations.

Why Allocation Matters:

Controls Immigration Levels: Helps the Home Office monitor and regulate the number of foreign workers entering the UK.
Ensures Compliance: Ensures employers adhere to the requirements of sponsorship by limiting the number of CoS they can issue.

Employers need to apply annually for an allocation or request additional CoS if they have used up their annual allocation.

3. Types of CoS Allocations

The two types of CoS allocation depend on the location of the applicant and the type of work visa being applied for:

Defined CoS

Used for: Skilled Worker Visa applicants outside the UK.
Application Process: Employers need to apply separately for each Defined CoS through their Sponsorship Management System (SMS).
Approval Timeline: Generally takes 1 working day for straightforward cases.

Undefined CoS

Used for: Skilled Worker Visa applicants already in the UK (e.g., switching visa types).
Annual Allocation: Employers request a set number of Undefined CoS each year.
Approval Timeline: Additional Undefined CoS requests may take up to 18 weeks if requested outside the annual allocation period.

Understanding these differences is crucial for employers managing foreign hires.

4. How to Apply for a CoS Allocation

The process for applying for an initial CoS allocation (or requesting more) involves using the Sponsorship Management System (SMS), an online platform provided by the Home Office.

Steps to Apply for a CoS Allocation:

Access the SMS: Log in to the Sponsorship Management System.
Request Allocation: Navigate to the CoS allocation section and request the required number of CoS.
Provide Justification: Explain why you need the CoS allocation (e.g., upcoming hires or new projects requiring skilled workers).
Submit and Await Approval: Submit the allocation request and wait for Home Office approval.

For each Defined CoS, employers need to apply individually, while Undefined CoS can be requested in bulk for a year.

5. When to Request Additional CoS

Employers may need to request additional CoS if their current allocation is used up before the end of the year. This is common in cases of business expansion or unexpected hiring needs.

Key Points for Additional Requests:

Apply in Advance: Apply early, as additional CoS requests can take up to 18 weeks to process.
Provide Supporting Evidence: Justify the need for extra CoS, such as new contracts, expansion plans, or increased demand.
Track Usage: Monitor CoS allocation and usage in SMS to ensure you have sufficient CoS available for hiring needs.

Being proactive with allocation requests can prevent hiring delays.

6. How CoS Allocation Renewal Works

Each year, sponsors with a Skilled Worker or Temporary Worker license must renew their CoS allocation. This ensures they have sufficient CoS for new hires or visa extensions.

Renewal Steps:

Review Requirements: Assess hiring needs for the upcoming year to determine the number of CoS required.
Submit Renewal Request: Through SMS, submit a renewal request with the desired number of Undefined CoS.
Provide Evidence if Needed: If you request significantly more CoS than the previous year, provide justification, such as growth forecasts.

Renewal of CoS allocation should be part of annual planning to avoid gaps in hiring capabilities.

7. Costs Associated with CoS

There are fees involved for issuing each CoS, which vary based on the type of visa and the employer’s size.

CoS Fees:

Skilled Worker and Temporary Worker CoS: £199 per CoS for both Defined and Undefined CoS.
Immigration Skills Charge (ISC): Employers hiring skilled workers may also pay an additional charge known as the ISC, which varies based on company size and duration of employment.

Budgeting for CoS fees is essential for employers managing multiple sponsored employees.

Holding a sponsorship license requires adherence to specific compliance requirements. Failure to comply can lead to license suspension or revocation.

Key Compliance Responsibilities:

Monitor Sponsored Employees: Track sponsored employees’ work status and report any changes in employment.
Keep Records: Maintain accurate records of each sponsored worker, including job details, contact information, and visa expiration.
Report Changes in Circumstances: Notify the Home Office of changes, such as employee termination, changes in work location, or salary adjustments.

Maintaining compliance ensures the ability to continue sponsoring foreign workers and avoid penalties.

9. Frequently Asked Questions (FAQs)

1. How long does it take to get a Defined CoS allocation approved?
Typically, Defined CoS applications are processed within 1 working day in straightforward cases.

2. Can I request more CoS during the year if I run out?
Yes, sponsors can request additional CoS if they have used up their annual allocation, but the process can take up to 18 weeks.

3. Do I need to apply for a new CoS each time I hire someone?
Yes, each new hire requires a separate CoS, which is tied to their specific visa application.

4. What happens if I don’t use all my CoS allocation?
Unused CoS do not carry over to the next year, so it’s essential to forecast hiring needs accurately.

5. Can I apply for both Defined and Undefined CoS?
Yes, but Defined CoS is only for applicants outside the UK, while Undefined CoS is for applicants already in the UK.

6. Is there an annual fee for CoS allocation?
There is no annual fee for the allocation itself, but each CoS issued incurs a fee, as does the Immigration Skills Charge if applicable.