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on August 18, 2025
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We wrote just recently here at Cranbrook Legal about the continued relevance of self-sponsorship as a means of moving to the UK for entrepreneurs.
This pathway to the UK is potentially attractive for many foreign nationals whose circumstances, requirements, and ambitions may not seem a natural “fit” for alternative visa categories.
If, however, you have been researching the “UK self-sponsorship visa” as a platform on which to relocate to the UK – perhaps discussing it with experts in UK immigration law such as our professionals in central London – you might have recently heard some concerning news.
Specifically, you might have seen or heard suggestions that significant restrictions have been placed on the self-sponsorship route, or that it has even been “closed” or “banned”.
Despite the term “self-sponsorship visa” being commonly used in reference to this route, there isn’t any official UK visa by this name.
We recognise here at Cranbrook Legal that if you are an existing self-sponsor already in the UK, or perhaps a foreign national considering this route, you might be worried about the recent suggestions in some quarters of self-sponsorship being “finished”.
So, to confirm: the UK self-sponsorship visa programme hasn’t “ended” or been “banned”.
Self-sponsoring remains an option for various overseas nationals who can meet the requirements. However, there have been some developments lately that both current self-sponsors and potential candidates for this pathway could benefit from knowing about.
Much of the conjecture over the last few months about the UK Government supposedly trying to bring self-sponsorship to an end, can be traced to the Home Office’s update on 31st December 2024 to its guidance for sponsor licence applicants.
At the time of this article being written, the exact text on “sponsoring workers in a personal capacity” could be read under section L1.7 of the guidance. It states:
We will not grant you a licence if you intend to sponsor workers in a personal capacity, such as in either of the following circumstances:
The subsequent part of the guidance, L1.8, makes clear that if the Home Office discovers an existing sponsor licence holder has used their licence to sponsor workers in a personal capacity as set out above, the department will normally revoke their licence.
Furthermore, the guidance states, those that have previously been allowed to sponsor workers in a personal capacity “must not assign any further Certificates of Sponsorship to sponsor workers on this basis.”
The guidance asserts that individual persons are not eligible to be recognised as sponsors, unless they are sole traders wishing to sponsor someone to work in their business.
No, it does not. What it does do, is confirm the previous rule that an individual cannot apply for a sponsor licence as an individual in a personal capacity. Instead, the applicant for a sponsor licence will need to be one of the following:
Applying to be a sponsor as a sole trader, should not be confused with doing so “in a personal capacity”. It is a distinct status, as an individual who is running a business.
If you successfully self-sponsor a move to the UK via this programme, it is the Skilled Worker visa that will be your “official” form of immigration permission in the UK.
The “personal capacity” clarification hasn’t been the only recent development of potential concern for those considering the self-sponsorship route to the UK. That’s because a further layer of challenge was added by the March 2025 Statement of Changes.
This saw a new Rule introduced to Appendix Skilled Worker of the Immigration Rules, under SW 14 (which relates to “consideration of salary”).
At the time of us writing this article, SW 14.2A stated:
Any money paid by the applicant to the sponsor (or a related organisation) will be considered as follows:
(a) The following payments will be subtracted from salary, unless (c) applies:
(i) deductions from salary; or
(ii) repayments of loans; or
(iii) investments.
(b) Any such subtractions will be averaged over the length of time the applicant is being sponsored for, for the purpose of salary considerations.
(c) Money will not be deducted where the payment is not related to business costs, immigration costs or investment, but rather an additional benefit offer which the applicant has a genuine choice whether to take up, for example salary sacrifice arrangements.
Meanwhile, the accompanying Explanatory Memorandum states:
Changes are also being made to the rules concerning deductions from an applicant’s salary. These changes are being made:
Foreign nationals seeking to sponsor themselves to move to the UK are clearly the target of this change, given that they have previously had the option of providing a young business with capital to cover such early expenses as start-up and salary costs.
It has always been necessary for such self-sponsors attempting to obtain a sponsor licence to pass the “genuineness” assessment of work. This process had previously taken account of the funds the business had available to it.
With effect from 9th April 2025, there has now been a major change to this approach.
It should be noted, though, that if an application for entry clearance or permission to stay is made using a Certificate of Sponsorship issued by a sponsor to an applicant before 9th April 2025, it will be the Immigration Rules as they stood on 8th April 2025 that will set the terms for the Home Office’s decision.
Our specialists in UK immigration law realise that you might be concerned about the recent introduction of changes affecting the self-sponsorship visa route.
Furthermore, you may be unsure about the implications of these changes for your ability to take advantage of the self-sponsored pathway, or the steps you should take to maximise your likelihood of a smooth application process for both the sponsor licence and the visa.
As award-winning experts in the UK’s ever-changing immigration system, we are well-placed at Cranbrook Legal to advise and guide you through every aspect of the self-sponsorship process, in light of the rules and guidelines as they presently stand.
To arrange a free consultation with us, please fill in and complete our online contact form. You are also welcome to call our central London-based team on 0208 215 0053.
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