Introduction
For any UK employer holding a sponsor licence, the Certificate of Sponsorship (CoS) is the single most important tool for recruiting overseas talent. Despite its name, a CoS is not a physical paper certificate. It is a virtual document, a unique database record generated within the Home Office’s Sponsorship Management System (SMS).
When you “assign” a CoS to a worker, you create a digital link between your licence and their visa application. This action acts as a pledge to the Home Office that you accept responsibility for the worker and that the job they are filling meets all the strict criteria of the UK’s immigration rules. Without a valid CoS reference number, a prospective employee cannot apply for their visa.
The Two Types of CoS: Defined vs. Undefined
Before logging in to the system, you must identify the type of CoS your candidate requires. The Home Office distinguishes between workers currently outside the UK and those already inside the country.
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Defined CoS (For Workers Outside the UK)
If the worker you wish to sponsor is currently overseas and will be applying for "entry clearance" (a visa to enter the UK), you must use a Defined CoS. Employers are not given a "bank" or annual allowance of Defined CoS. Instead, you must apply to the Home Office for these on a case-by-case basis. You apply for a Defined CoS specifically for the job vacancy you need to fill.
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Undefined CoS (For Workers Inside the UK)
If the worker is already legally in the UK and is applying for "permission to stay" (for example, they are switching from a student visa to a Skilled Worker visa, or extending their current work visa), you must use an Undefined CoS. Unlike the Defined version, Undefined CoS are drawn from an annual allocation. When your licence is granted or renewed, the Home Office gives you a specific number of these certificates to use within the "CoS year." If you run out, you must request an increase.
How to Apply for a Defined CoS
If your candidate is overseas, you cannot assign a CoS immediately. You must first ask the Home Office for permission to create one. This is a specific application process within the SMS.
How to Apply for an Undefined CoS
For workers inside the UK, you do not need to submit a separate application for the certificate if you already have an allocation available.
Checking Your Allocation: Your Level 1 User should check the “Licence summary” screen in the SMS to see your “limit” and “number remaining” for Undefined CoS.
- If you have certificates remaining, you can proceed immediately to "Create and Assign."
- If your allocation is zero, you must use the "Request CoS/CAS allocation increase" function. You must provide justification for the additional certificates you need.
The Assignment Process of the CoS
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Select Route
Choose the correct route and category.
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Input Worker Details
Enter the worker’s details exactly as they appear on their passport.
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Confirm Employment
Enter the start date, end date, work address, and salary.
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Sponsor Certifies Maintenance
You will be asked if you wish to certify maintenance for the migrant. By ticking "Yes," you confirm that you will maintain and accommodate the worker for the duration of their first month of employment (up to at least £1,270) if necessary. This exempts the worker from having to provide bank statements with their visa application. You must be an A-rated sponsor to do this.
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Payment
You pay the CoS fee and the Immigration Skills Charge (if applicable) to complete the assignment.
The Costs of Sponsorship
There are two primary costs associated with assigning a CoS: the certificate fee and the Immigration Skills Charge.
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The CoS Fee
You must pay a fee for every CoS you assign. This fee varies by route and is non-refundable if the worker’s visa is refused, except for specific error corrections.
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The Immigration Skills Charge (ISC)
The ISC is a levy designed to support domestic skills training. It applies to most Skilled Worker and Senior or Specialist Worker sponsorships.
You must not pass the Immigration Skills Charge or the CoS fee on to the worker. It is a cost borne by the employer.
Approval Timelines of the CoS
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Defined CoS (Overseas)
These are usually decided within one working day. However, delays may occur if the Home Office requests further information to verify the vacancy's authenticity.
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Undefined CoS (Allocation Increase)
If you need to request an increase to your annual allocation, the standard processing time can be significantly longer, potentially taking several weeks depending on current service standards (often up to 18 weeks, though priority services may be available for a fee).
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Assignment
The actual action of assigning a CoS is instant. As soon as you click submit and pay, the reference number is generated.
Common Mistakes to Avoid
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Defined CoS (Overseas)
These are usually decided within one working day. However, delays may occur if the Home Office requests further information to verify the vacancy's authenticity.
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Incorrect Salary Calculations
The Home Office calculates salary based on a maximum of 48 hours per week for the general threshold. If your employee works 60 hours, only the salary for the first 48 hours counts towards the £41,700 threshold. Furthermore, you must pro-rate the "going rate" based on the actual hours worked.
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Invalid Start Dates
The start date on the CoS cannot be more than 3 months after the date you assign it. If the worker does not apply for their visa within 3 months, the CoS expires.
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Forgetting the Sponsor Note
If you make a minor error on the CoS (such as an error in the date of birth), you cannot edit the document once assigned. However, you can use the "Sponsor note" function in the SMS to add a correction. This must be done before the worker submits their visa application.
Conclusion
Applying for a Certificate of Sponsorship is a precise administrative process that serves as the gateway to the UK labour market for overseas talent. Whether you are applying for a Defined CoS for a new hire abroad or utilising your allocation of Undefined CoS for a worker inside the UK, accuracy is critical.
Employers need to meticulously verify that the job meets the skill requirements and the robust salary thresholds set out in the immigration rules. By understanding the distinction between Defined and Undefined certificates, accurately calculating fees such as the Immigration Skills Charge, and adhering to the timelines, you can ensure a smooth process. A correctly assigned CoS is far more than a digital record; it is the foundation of a successful visa application and a compliant sponsorship relationship.
