Renewing Your Annual CoS Allocation for a UK Sponsor Licence

If your organisation holds a UK Sponsor Licence, managing your annual Certificate of Sponsorship allocation, commonly known as a CoS allocation, is an important part of maintaining effective sponsorship arrangements.

Your CoS allocation may need to be renewed each year while your Sponsor Licence remains valid. Any Certificates of Sponsorship that remain unused at the end of the relevant CoS year will normally be removed from your Sponsorship Management System, or SMS, account.

Unused CoS cannot be carried forward to the next allocation year.

Depending on your circumstances, your next annual allocation may be:

• renewed automatically; or
• requested manually through your SMS account as a follow-on allocation.

Understanding which process applies can help your organisation avoid recruitment delays and ensure that Certificates of Sponsorship are available when required.

What Is an Annual CoS Allocation?

A Certificate of Sponsorship is an electronic sponsorship record assigned by a licensed sponsor to an eligible overseas worker. It is not a physical certificate.

An annual CoS allocation is the number of relevant Certificates of Sponsorship made available to an organisation during its CoS year.

Sponsors should monitor their allocation carefully and consider:

• how many CoS have already been assigned;
• how many remain available;
• the organisation’s anticipated recruitment requirements;
• when the current allocation is due to end; and
• whether automatic or manual renewal applies.

What Happens at the End of the CoS Year?

At the end of the organisation’s CoS allocation year, any unused CoS will ordinarily be removed from the SMS account. They cannot simply be added to the following year’s allocation.

The sponsor may then:

1. receive an automatic allocation for the next CoS year; or
2. need to submit a manual annual allocation request through the SMS.

Where an annual allocation is renewed automatically, the new allocation will normally start on the day following the end of the current allocation year.

A manually renewed allocation will generally start when the request is approved.

Automatic Renewal of an Annual CoS Allocation

An organisation may qualify for an automatic annual allocation where the relevant eligibility requirements are met.

This will generally require:

• an A-rated Sponsor Licence;
• an annual CoS allocation showing as active in the SMS account; and
• sponsorship permission under an eligible Worker or Temporary Worker route.

The following routes are not normally eligible for automatic allocation renewal:

• Seasonal Worker;
• Secondment Worker;
• Service Supplier; and
• UK Expansion Worker.

Sponsors licensed under an ineligible route will normally need to make a manual request if they require an allocation for the following period.

How Is an Automatic CoS Allocation Calculated?

Where automatic renewal applies, the number of CoS granted for the new allocation year is normally based on the number assigned during the previous CoS year.

Example

Suppose an employer had an allocation of 15 Certificates of Sponsorship but assigned only 10 during that year.

The automatic allocation for the following year would normally be 10 CoS, rather than 15.

If the business expects to sponsor more than 10 workers, it may need to submit a separate request to increase its allocation through the SMS.

Undefined and Defined CoS for Skilled Workers

Organisations licensed under the Skilled Worker route should understand the distinction between Undefined and Defined Certificates of Sponsorship.

Undefined CoS

Undefined CoS are generally used for eligible Skilled Worker applications made from within the UK, as well as certain applications under other sponsored work routes.

For a Skilled Worker sponsor, an automatic annual allocation applies only to Undefined CoS.

Defined CoS

A Defined CoS is generally required for a Skilled Worker applying for entry clearance from outside the UK.

Defined CoS are not normally included within the annual automatic allocation. They must continue to be requested through the SMS when required, subject to the applicable immigration and sponsorship requirements.

A Defined CoS request should not be confused with:

• an annual Undefined CoS allocation;
• a follow-on allocation request; or
• a request to increase an existing allocation.

When Is a Manual CoS Allocation Request Required?

A sponsor may need to submit a manual or follow-on allocation request where:

• the licence is not eligible for automatic renewal;
• the relevant sponsorship route is excluded from automatic renewal;
• the automatic allocation will not meet anticipated recruitment needs;
• no CoS were assigned during the previous allocation year;
• the current allocation is not shown as active;
• the sponsor needs to increase its existing allocation; or
• UK Visas and Immigration requires the request to be considered by a caseworker.

The Sponsor Management System allows sponsors to review their current allocation, monitor outstanding requests and check when an allocation is approaching its expiry date.

When Can a Sponsor Apply for Annual CoS Renewal?

Where a manual renewal is required, the request can normally be submitted through the SMS up to three months before the current CoS year ends.

Sponsors should not leave the process until the last moment. A late request or an insufficient explanation may affect the organisation’s ability to assign a CoS when a worker needs to submit a visa application.

Employers should regularly review their:

• current CoS balance;
• allocation expiry date;
• anticipated recruitment requirements; and
• expected number of sponsored workers.

Supporting a Manual CoS Allocation Request

A manual allocation request should be accurate, properly explained and consistent with the organisation’s genuine recruitment requirements.

Depending on the circumstances, the sponsor may need to provide information about:

• the number of CoS requested;
• the roles the organisation intends to fill;
• relevant occupation codes;
• proposed salaries and working hours;
• the reasons overseas recruitment is required;
• the expected recruitment timetable;
• existing sponsored workers;
• business growth or new contracts; and
• the organisation’s ability to comply with its sponsor duties.

UK Visas and Immigration may request further information before deciding the application.

Sponsors should therefore retain relevant recruitment, employment and business records. The information submitted through the SMS should also be consistent with the organisation’s wider Sponsor Licence records.

Common CoS Allocation Problems to Avoid

Failing to Check the CoS Year-End Date

The CoS allocation year is not necessarily the same as the calendar year or the organisation’s financial year. Sponsors should check the relevant allocation details shown in the SMS.

Assuming Unused CoS Will Carry Forward

Unused Certificates of Sponsorship are not ordinarily carried into the next CoS year.

Confusing Defined and Undefined CoS

Defined and Undefined CoS are requested and managed differently. Selecting the wrong process can delay the sponsorship of a worker.

Requesting an Unsupported Number of CoS

A request for a significantly higher allocation should be supported by a credible business and recruitment explanation.

Waiting Until a Worker Needs to Apply

Sponsors should review their recruitment plans in advance. Manual requests may require caseworker consideration and additional evidence.

Allowing SMS Information to Become Outdated

The organisation should ensure that its address, key personnel, PAYE references and other Sponsor Licence details are accurate before making an allocation request.

Annual CoS Allocation Renewal Services from ZR Visas, UK

ZR Visas, UK can assist Sponsor Licence holders with the annual renewal and management of their Certificate of Sponsorship allocation.

Our services can include:

• reviewing your current CoS allocation and expiry date;
• checking whether automatic renewal may apply;
• identifying whether a manual follow-on allocation is required;
• assessing your expected sponsorship and recruitment needs;
• preparing the explanation for the number of CoS requested;
• advising on Undefined and Defined CoS requirements;
• assisting with an annual allocation renewal request;
• assisting with a request to increase an existing CoS allocation;
• reviewing relevant supporting documents;
• checking the consistency of information recorded in the SMS; and
• providing ongoing Sponsor Licence compliance support.

Need Help Renewing Your Annual CoS Allocation?

If your Sponsor Licence allocation is approaching its expiry date, or your business expects to recruit additional sponsored workers, contact ZR Visas, UK for professional assistance.

We can review your circumstances, advise on the appropriate SMS request and help you prepare a clear and properly supported application.

Contact ZR Visas, UK today for assistance with annual CoS allocation renewal, follow-on allocation requests, CoS increases and Sponsor Licence compliance.

Frequently Asked Questions

1. Does a CoS allocation renew automatically every year?

Not in every case. Automatic renewal depends on factors such as the sponsor’s licence rating, the status of its current allocation and the immigration route under which it is licensed.

Some sponsorship routes are excluded from automatic renewal.

2. Can unused Certificates of Sponsorship be carried forward?

Generally, no. Any CoS left unused at the end of the CoS year will normally be removed from the SMS account and cannot be transferred into the next allocation year.

3. How many CoS will I receive through automatic renewal?

The allocation will normally reflect the number of relevant CoS assigned during the previous CoS year.

For example, if you assigned eight CoS during the previous year, your next automatic allocation would ordinarily be eight.

4. What happens if I need more CoS than my automatic allocation?

You can submit an allocation increase request through the SMS.

The request should explain why the additional Certificates of Sponsorship are required and may need to be supported by evidence of genuine recruitment plans.

5. Does automatic renewal include Defined CoS?

No. For Skilled Worker sponsors, automatic annual allocations relate to Undefined CoS.

Defined CoS must ordinarily be requested separately when required for an eligible worker applying for entry clearance from outside the UK.

6. When can I submit a manual annual allocation request?

A manual annual allocation request can normally be made up to three months before the end of the current CoS allocation year.

7. How can I find my CoS allocation expiry date?

The allocation period and relevant status can be checked through the licence summary and allocation sections of the Sponsorship Management System.

8. What is a follow-on CoS allocation?

A follow-on allocation is a manual request for a further annual allocation.

It is generally required where the sponsor does not qualify for automatic renewal or needs to request an allocation under a route that is not eligible for automatic renewal.

9. Can UK Visas and Immigration ask for additional information?

Yes. A manually submitted allocation request may be reviewed by a caseworker, and the sponsor may be asked to provide further information or supporting documents.

10. Can a Sponsor Licence holder request a CoS allocation increase during the year?

Yes. If the existing allocation is insufficient, the sponsor can request an increase through the SMS.

The request should be based on genuine recruitment requirements and include a clear justification for the number of additional CoS requested.

11. Does annual CoS renewal extend the Sponsor Licence itself?

No. A CoS allocation relates to the organisation’s ability to assign Certificates of Sponsorship.

It is separate from the validity, status and management of the Sponsor Licence itself.

12. Can ZR Visas, UK prepare our annual allocation request?

Yes. ZR Visas, UK can assess your allocation position, review your recruitment requirements, help prepare the supporting explanation and assist with the relevant annual renewal or allocation increase process.

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Disclaimer: This web post provides general information and does not constitute legal advice. Sponsor guidance and immigration requirements may change. Professional Immigration Advice should be obtained from an IAA Regulated Immigraiton Firm (such as ZR Visas, UK) based on the organisation’s individual circumstances before making an SMS request.