Home Office audits of care companies: Sponsor licence audit readiness (2026 guide)

The UK care sector remains heavily dependent on sponsored migrant workers to fill ongoing staffing shortages. As more care providers obtain sponsor licences under the Skilled Worker route, the Home Office has significantly increased its compliance activity. In practical terms, this has resulted in more frequent audits, higher scrutiny, and a growing number of unannounced visits to care companies across the UK.

For care providers, being audit-ready is no longer optional. It is essential for protecting your sponsor licence, your workforce, and the continuity of care services you provide.

1. Increased scrutiny of the care sector

The Home Office continues to treat the care sector as a high-risk area for sponsor licence misuse. Common concerns include non-genuine vacancies, workers being paid below required salary levels, and employees carrying out duties that do not match their Certificates of Sponsorship. There are also recurring compliance issues around guaranteed hours, record-keeping, and reporting duties.

As a result, care providers may face both pre-licence and post-licence compliance visits. Audits can be triggered by intelligence reports, data mismatches between HMRC and sponsorship records, whistleblowing complaints, or sector-wide enforcement initiatives. In many cases, visits are unannounced, meaning companies must maintain compliant systems at all times rather than attempting last-minute fixes.

2. What happens during a Home Office audit

A Home Office compliance visit is typically detailed and investigative. Officers may interview key staff responsible for sponsorship as well as sponsored workers themselves to test whether sponsor duties are understood and followed in practice.

They will usually review:

  • HR systems and right-to-work checks

  • Personnel files and employment contracts

  • Payslips, rotas, and timesheets

  • Reporting history on the Sponsor Management System

  • Evidence that sponsored roles are genuine and paid correctly

Even issues that appear administrative or minor can be used as evidence of wider non-compliance. The Home Office expects sponsors to demonstrate consistent, accurate, and proactive compliance.

3. Why audit readiness is critical

Failing a compliance audit can have serious consequences. The Home Office has the power to suspend a sponsor licence, downgrade it to a B-rating, or revoke it entirely. For care providers, revocation is particularly damaging because sponsored workers will no longer be able to work for the business. This can cause immediate staffing shortages, reputational damage, and in some cases, business closure.

In addition, sponsored workers’ visas may be curtailed unless they find a new sponsor quickly and make a valid application to switch employment.

Audit readiness means having systems that work every day, not only when an inspection is expected. Sponsors must actively monitor attendance, job roles, working hours, and immigration status on an ongoing basis.

4. Common compliance challenges for care companies

Many care providers struggle with:

  • Inconsistent or outdated right-to-work checks

  • Missing or incomplete employee records

  • Failure to report changes on time

  • Poor understanding of sponsor duties among managers

  • Over-reliance on third-party advisers

The Home Office does not accept lack of knowledge, staff turnover, or external HR support as valid excuses. Legal responsibility for compliance always rests with the sponsor licence holder.

5. Caselaw and Home Office enforcement powers

Recent case law confirms that courts give the Home Office broad discretion in sponsor licence decisions. Sponsorship is considered a privilege, not a right, and strict compliance is expected.

In R (New Hope Care Ltd) v Secretary of State for the Home Department, the High Court upheld licence revocation where record-keeping and monitoring failures were identified, even though the sponsor argued that the breaches were minor. The court confirmed that deliberate abuse does not need to be proven for enforcement action to be justified.

Courts have also made clear that the financial impact of licence revocation or disruption to care services will rarely outweigh the importance of immigration compliance. These consequences are generally viewed as foreseeable risks of non-compliance.

6. Key compliance lessons for care providers

Effective compliance requires more than written policies. Systems must work in practice and be understood by staff across the organisation. Delegating HR or sponsorship duties does not remove responsibility from the sponsor. Errors by employees or external advisers are still attributed to the company.

Care providers should ensure that:

  • HR systems are robust and regularly audited internally

  • Reporting duties are clearly assigned and monitored

  • Managers understand sponsor responsibilities

  • Records are accurate, complete, and accessible

  • Sponsored roles match actual working arrangements

7. Staying audit-ready in 2026

With enforcement activity increasing, sponsor licence compliance is now a major operational risk for care companies. Home Office audits are thorough, tolerance for mistakes is low, and legal challenges to enforcement decisions are difficult.

Being audit-ready protects your workforce, safeguards service delivery, and helps ensure the long-term stability of your business. Care providers should regularly review their systems and seek professional guidance where necessary to reduce risk.

How LawSentis can help

LawSentis is a UK immigration and relocation firm providing premium sponsor licence and compliance support to businesses across the UK, including care providers. We assist with:

  • Sponsor licence audit preparation

  • Mock Home Office compliance visits

  • HR and sponsorship compliance reviews

  • Suspension and revocation response

  • Ongoing sponsor licence management

If your care company holds a sponsor licence or plans to apply for one, it is essential to ensure your systems are fully compliant before a Home Office visit takes place.

Contact LawSentis today for expert support with sponsor licence compliance, audit readiness, or urgent Home Office action. Our team can help you protect your licence, your staff, and your business.

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