How to Pass a UKVI Compliance Audit: Essential Record-Keeping, Reporting and Right-to-Work Checks Explained

Passing a UKVI compliance audit means you need to focus on three key areas: record-keeping, reporting, and right-to-work checks. Keeping accurate and organised records, regularly checking that employees have the legal right to work in the UK, and reporting any visa issues promptly are essential steps to meet UKVI requirements. These actions reduce the risk of penalties and help maintain your sponsor licence.

You must also make sure your HR policies reflect the rules for managing sponsored workers. Your team should understand the importance of compliance, from using the Sponsorship Management System to conducting ongoing checks. Being prepared shows UKVI that you take your responsibilities seriously and helps your business avoid compliance problems.

Understanding UKVI Compliance Audits

UKVI compliance audits check if you follow immigration laws, especially when sponsoring foreign workers. They look closely at your record-keeping, reporting, and right-to-work checks. Knowing why these audits happen, who is involved, and recent rule changes will help you prepare and stay compliant.

Purpose of a UKVI Compliance Audit

The main goal of a UKVI compliance audit is to ensure you are following the rules under UK immigration law. This includes checking that your sponsored employees have the legal right to work and that you keep accurate records. UKVI wants to stop illegal working and protect the integrity of the sponsorship system.

During the audit, UKVI reviews your systems to verify you have done thorough right-to-work checks. They also check if your Certificates of Sponsorship (COS) are managed correctly. If you fail, you risk losing your sponsor licence, facing penalties, or being banned from sponsoring workers.

Staying audit-ready means having clear, updated documents and solid processes in place.

Role of UKVI and Key Authorities

UKVI, or UK Visas and Immigration, is the government body responsible for immigration enforcement. It runs the compliance audits and uses the results to decide if you meet legal requirements. UKVI works with other departments like the Home Office to cross-check information and investigate issues.

The audit team will expect you to demonstrate proper management of your sponsorship licence and employee records. They focus on your HR systems, how you keep data, and whether you report changes promptly. Failure to cooperate during audits can lead to stricter sanctions.

You must understand that UKVI holds significant power to revoke licences and impose fines, so maintaining clear communication and transparency is critical.

Recent Policy and Regulatory Updates

Recent updates reinforce stricter rules on right-to-work checks and record-keeping. For example, UKVI now requires more frequent re-checks of workers’ eligibility, reflecting a tougher stance on compliance. Digital audits have become more common, meaning your electronic records and systems must also be audit-ready.

Policies emphasise that errors in documentation or delays in reporting changes can result in penalties. The updated guidance also highlights the importance of managing your COS accurately and retaining records for the required length of time.

You should review the latest UKVI compliance guides regularly to ensure your processes reflect current legal expectations.

Essential Record-Keeping for Compliance

Your record-keeping must be accurate, up-to-date, and easy to retrieve. This includes all documentation related to sponsored workers, biometric residence permits, and your system for storing and managing data securely. Proper organisation helps you avoid penalties and ensures your sponsor licence stays valid.

Required Documentation for Sponsors

You need to keep several important documents for every sponsored employee. This includes:

• A copy of the employee’s passport and visa

• Their biometric residence permit (BRP) if they have one

• Proof of the employee’s right to work in the UK

• Copies of all communication with UKVI about the worker

• Records of attendance or absences

These documents must cover the whole sponsorship period and stay accessible for at least one year after a worker leaves. Missing or incomplete documents can lead to non-compliance and licence suspension.

Maintaining Biometric Residence Permit Records

If your sponsored workers hold biometric residence permits, keep detailed copies of both sides of the BRP. You must also note the issue date and expiry date. Check the BRP regularly to confirm it is still valid.

Keep records of any updates or changes to the BRP, as these affect permission to work. If a worker reports a lost or stolen BRP, record the date and any correspondence with UKVI. This helps you track compliance and respond quickly to any issues.

System Security and Data Management

Your data systems must protect personal information and prevent unauthorised access. Use a centralised, secure digital system for storing records to make audits faster and easier.

Regularly back up your data and control who can view or edit sensitive documents. Audit trails showing access and changes help prove compliance during inspections. Paper records should be kept safe and organised separately from digital files.

Keeping your data secure and well-managed supports your compliance with UKVI rules and reduces risks during audits.

Reporting Duties and Sponsor Responsibilities

You must keep accurate records and report specific worker and licence changes to UKVI on time. Understanding how to use the Sponsor Management System (SMS) is key to meeting your duties without errors. Avoiding common mistakes will protect your licence and prevent penalties.

Timely Reporting of Changes

You are required to inform UKVI within 10 working days of any important changes related to your sponsored workers. These include changes to their job role, salary, contact details, or if they stop working for you.

Delays can lead to licence suspension or fines. Reporting also applies when there are changes in your organisation’s details, such as ownership or business address.

Make sure your reporting covers:

• Absences over 10 working days without permission

• Suspension or dismissal related to visa conditions

• Any breach of sponsorship conditions by the worker

Keeping a calendar or reminder system for these deadlines can help you avoid missing critical reporting windows.

Using the Sponsor Management System

The Sponsor Management System (SMS) is your main tool to report information to UKVI. You must log into SMS to update worker details, report non-compliance, and assign key personnel roles.

Ensure your SMS user access is limited to trained staff only. Always double-check entries before submission to avoid mistakes.

Your SMS tasks include:

• Creating and managing individual worker records

• Reporting lost, stolen or expired documents

• Uploading documents when requested by UKVI during audits

Regular training and reviewing SMS updates helps you stay compliant with any system changes.

Common Reporting Mistakes and Solutions

One frequent error is late or incomplete reporting of changes. Missing details like salary adjustments or job role changes can trigger compliance issues.

Another common mistake is not updating UKVI when a sponsored worker leaves. Make sure you report this immediately to avoid liability.

To prevent errors:

• Use checklists for each report submission

• Keep thorough records and audit them regularly

• Assign clear responsibility for reporting within your HR team

If unsure about a report, contact UKVI or refer to official guidance before submitting. This avoids penalties or unnecessary licence risks.

Conducting Right-to-Work Checks

You need to confirm every worker’s legal right to work before they start. This involves verifying documents and completing checks in line with immigration law. Accurate records and proper processes help you avoid penalties and keep your sponsor licence safe.

Legal Requirements and Verification Process

You must check original documents that prove right to work status. This includes passports, biometric residence permits, or settled status under the EU Settlement Scheme. Checks must be done in person unless you use the Home Office online Right to Work service.

Keep copies or scanned versions of the documents you check. You must store these securely and ensure they cannot be altered. Your record-keeping should show dates when the checks were done and who conducted them.

If a worker’s right to work is time-limited, you need to check again before that right expires. You also must be prepared to show evidence of compliance during an audit.

Utilising Electronic Travel Authorisation (ETA)

The ETA system affects people requiring entry clearance to the UK. Before employment, you should verify if workers from ETA-eligible countries have received approval.

Check the ETA documentation or confirmation provided during the UK visa application process. This document, once granted, confirms the person’s permissions, including work rights.

You can also cross-check ETA approvals through the Home Office’s electronic systems, which speed up verification. Staying up to date with ETA rules ensures you only employ authorised individuals.

Avoiding Common Compliance Pitfalls

Avoid using fake or inappropriate documents by training staff responsible for checks. Do not accept photocopies alone, and be cautious with documents that seem inconsistent or tampered with.

Ensure you repeat right-to-work checks for workers with limited permission well before expiry. Failure to do so can lead to penalties or licence suspension.

Monitor changes in immigration law regularly, like updates to ETA requirements or visa policies. Clear documentation and timely checks are your best defence against compliance issues.

Preparing for a Successful Audit Visit

Being well-organised before a UKVI compliance audit helps you avoid delays and penalties. Focus on reviewing your records, training your staff, and understanding what will happen on the audit day. These steps will improve your chances of passing the inspection smoothly.

Internal Pre-Audit Review

Start by conducting a thorough check of all your sponsorship records. Verify that every right-to-work document is current, valid, and properly logged in your

Sponsor Management System (SMS). Ensure all changes to sponsored employees, like job roles or absences, are promptly updated.

Keep your records easy to access and well-organised. UKVI officers expect to see clear evidence showing you follow your sponsor duties. Use a checklist to confirm:

• Right-to-work checks are done and documented

• Records match details in the SMS

• Recruitment practices follow UKVI rules

Identify and fix any gaps before the audit. This proactive step reduces issues and speeds up the inspection.

Staff Training and Awareness

Your staff must understand UKVI requirements, especially those handling immigration and HR tasks. Offer training on how to manage sponsorship duties, including right-to-work checks and record-keeping.

Make sure your team knows how to handle official requests for information from UKVI during the visit. They should be able to provide documents promptly and answer basic questions about compliance.

Regular refresher sessions help maintain awareness of changing rules. Keep records of all training sessions, as this proves your ongoing commitment to compliance.

Audit Day: Process and Expectations

On audit day, UKVI officers will ask to see your records and speak with key personnel. They usually start with an interview to understand your compliance system and then review documentation.

Be prepared to provide:

• Right-to-work checks for each sponsored employee

• Evidence of salary payments and absences

• Recruitment records showing lawful practices

Cooperate fully but keep responses clear and factual. Avoid volunteering unnecessary details. The officers will note any discrepancies, so transparency is essential.

Finally, organise a specific point of contact for the auditors. This person should know your systems well and communicate clearly to avoid delays or misunderstandings.

Post-Audit Actions and Ongoing Compliance

After your UKVI compliance audit, you need to act promptly on any findings. Keeping your processes updated and adapting to changes in immigration law are essential steps. This will help you stay audit-ready and avoid penalties.

Addressing Audit Feedback

When you receive audit feedback, review every point carefully. Identify any areas where your record keeping, reporting, or right-to-work checks fell short.

Create a clear action plan that states what needs to be fixed and when. Assign responsibilities to specific team members.

Focus on correcting issues like missing documents or incorrect employee records first. These are common audit failings that can lead to licence suspension.

Document the steps you take to resolve problems. This evidence can help in any follow-up reviews or future audits.

Continuous Monitoring and Improvement

You should maintain regular internal checks on your UKVI compliance procedures. Set up a schedule for reviewing employee right-to-work documents and sponsor licence records.

Use tools like spreadsheets or compliance software to track expiry dates and updates. This reduces the risk of errors or missed deadlines.

Train your staff continuously on compliance requirements, focusing on immigration law updates. Clear communication helps minimise mistakes.

Hold quarterly meetings to discuss compliance performance and review any new risks. This creates a culture of accountability and readiness.

Maintaining Compliance with Changing Laws

Immigration law is often updated. Stay informed about changes from the UKVI or Home Office websites to ensure you adapt quickly.

Immediately update your processes and documentation policies when new rules affect right-to-work checks or record-keeping.

Consider subscribing to immigration law alerts or hiring a specialist to support your compliance responsibilities. Regularly update training materials and inform all relevant employees of legislative changes. This keeps your organisation aligned with legal expectations.

At Athi Law, we specialise in tailored legal solutions. Whether you need a skilled worker visa solicitor, guidance on immigration for students or immigration for investors, our experts are here to help. Our trusted commercial lease solicitors and independent legal advice solicitors ensure your business and personal matters are in safe hands. Contact us today for professional legal advice!