Here's the setup that appeals to many entrepreneurs: register a UK company, get a sponsor licence, sponsor yourself for a Skilled Worker visa, then run everything from your laptop wherever you happen to be.
The problem? The Skilled Worker visa isn't designed for remote work from overseas, and treating it like it is can get your sponsor licence revoked faster than you'd expect.
The Physical Presence Rule
Your Skilled Worker visa gives you permission to work in the UK. That means physically being in the UK while you do the work. The Home Office expects you to be contributing to the UK economy from UK soil, not logging in from Bali or your home country for months.
Yes, you can take business trips abroad. What you can't do is base yourself outside the UK and call it remote working. Even if every task is online, the visa requirement remains the same.
The Director Residency Trap
Under ‘Companies Act’, directors don't need to be UK residents. You can register and run a company from abroad.
Immigration law operates differently. Your sponsor licence needs an Authorising Officer and a Level 1 User, both UK-based. The Authorising Officer must be a settled person who takes ultimate responsibility for compliance. That can't be you if you're applying for the visa.
Most people appoint a UK business partner or hire a professional. That works, but only if it's genuine. The Home Office checks whether this person actually understands sponsor duties and actively manages them. A nominee director who couldn't answer basic questions during a compliance visit? Problem.
What Compliance Visits Check
When Home Office officers turn up, they're looking for proof that your business operates in the UK and that you're here doing the work.
- Office evidence: Even serviced offices need proof you use them (meeting bookings, post sent there, attendance logs)
- HR systems: Can you show attendance records? They'll want payslips proving your salary goes into a UK bank via PAYE.
- Home visits: Working from home? They might show up without calling first
- Role verification: They'll compare what you're doing with your Certificate of Sponsorship
The guidance explicitly states that absence records verify genuine employment. No records, or backdated ones? Your licence is at serious risk.
Remote Work Reporting Problem
Since April 2023, sponsors must report remote working through the Sponsorship Management System. Working from home full-time is reported directly to the Home Office.
Once they know your role doesn't require a physical workplace, they ask: Why exactly do you need a UK presence if you could do this from anywhere? Some businesses running entirely remote operations have had applications refused on grounds of genuineness.
Investigation Triggers
| Trigger | Response |
| Virtual business, no premises | Almost guaranteed pre-licence check |
| HMRC intelligence | Unannounced visit, often same day |
| Permanent remote working | Extra scrutiny with overseas travel |
| New applications | Pre-decision HR systems visit |
| Minimal office attendance | Pattern analysis, enforcement |
What matters is the pattern. One week abroad for clients? Fine. Months of minimal UK presence with regular overseas trips? That builds a case against you.
Proving Genuine Trading
The Home Office wants to know if your business is actually doing business in the UK.
What does that look like? Contracts you've signed with UK clients. Invoices that prove you're trading right now, not eventually. Bank statements, where they can see actual money moving through your account. Evidence that you're working with UK suppliers or serving UK customers.
Brand new companies face tougher questions. A Y & J Solicitors sees this repeatedly. Businesses show up with a website, business plan, and registered address, but can't demonstrate actual UK revenue. For companies under 18 months old, the Home Office wants solid income proof.
Structuring for Compliance
If you want your self-sponsorship to work long term, here's what you need.
Get a real UK base. Not mail forwarding, an actual workspace you show up to. Keep detailed records of when you're there and where you're working from.
Your Authorising Officer needs to know what's happening and explain the sponsor duties they're responsible for. Travelling abroad? Write down why. Client meetings, suppliers, and opening markets. Document the business reason.
Pay yourself properly. PAYE, UK bank account, the exact amount on your Certificate of Sponsorship. Don't try to be clever with payment structures or offshore accounts.
Check your Appendix D compliance every three months.
Get Expert Self Sponsorship Support
Not sure how to handle UK presence requirements for self-sponsorship? A Y & J Solicitors works with entrepreneurs going through the sponsor licence process. We help you set up compliant business structures, prepare for compliance visits, and keep sponsor duties on track. Book a free call with A Y & J Solicitors to talk through your plans and make sure your business ticks the right boxes from the start.