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Question 1 > I would like to know if its possible to work

Customer Question
Question 1 > I...
Question 1 > I would like to know if its possible to work as IT contractor under Tier 1 Entrepreneur visa ?


Further info about my situation:

I would be working through my limited company where i am the director...There would be contract for services between "my company" and "the agency"...In turn there will be another contract between "the agency" and "the client"....(This work that i undertake would be found myself through jobserve.com where they are termed as "contract" jobs)

My limited company would also be handling a few other contracts from multiple clients over time....

In addition to all the above, i also own a web startup company which is registered Ltd company in UK and i am the 100% share holder...
I would also be setting up a few similar companies in the future....
Submitted: 5 years ago.Category: UK Immigration Law
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Answered in 25 minutes by:
5/12/2012
Solicitor: Awan-Legal, Solicitor replied 5 years ago
Awan-Legal
Awan-Legal, Solicitor
Category: UK Immigration Law
Satisfied Customers: 128
Experience: Specialist in immigration law with the highest level of accreditation in this area and with many years experience.
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Awan-Legal : Hi
Awan-Legal : Just bear with me while I type up the answer:
Customer:

sure

Awan-Legal : Thanks. Also, can you confirm how much you will be investing..£200,000 or £50,000?
Customer:

thats 50k as i am switching from PSW

Awan-Legal : When was your company registered for which you are a director?
Customer:

Well, at present there is one company A (a web startup) where i am the director which would be using to get my visa..

Customer:

Regarding the IT contracting...i shall be registering a seperate company(B) soon through whihc i shall provide IT services....

Customer:

company A is registered about 20 days ago...

Customer:

company B soon to register....

Awan-Legal : Hi sorry for the delay as a conference call came through.
Awan-Legal : Is it okay if I respond to you by later on this evening?
Customer:

No problem at all !

Customer:

sure..thats ok..take your time..

Customer:

if you can give me a time...I can try to be on online chat at that time

Awan-Legal : Hi
Awan-Legal : My apologies for the delayed response as I had problems logging back in.
Customer:

no problem..

Awan-Legal : You can work as an IT contractor on a self employed agency basis but you must be able to create two jobs as part of the tier 1 entrepreneur rules. If, for example, you are able to employ two IT workers for your company at the same time then this should be fine.
Customer:

ok..I think I will be able to do that ...but is there any time limit on that ?

Customer:

My only concern is the condition of the visa says...."no employment other than working for the business that you have established"

Awan-Legal : You should create the two jobs within the duration of the visa.
Awan-Legal : As long as this is done as self employment through your own company and meets the definition of self employment. This means the ageny should have no control over your time
Customer:

yea..ok..if for some reason i am refused to be awarded a contract due to the visa status....is there any way for me to prove to the agency that i am eligible to work on a self employed basis?

Awan-Legal : The jobs would have to have been created at least 12 months before your next extension though.
Customer:

hmm

Awan-Legal : The link below will help you ensure that you work with the agency is covered by self employment rather than employment:
Awan-Legal : http://www.hmrc.gov.uk/employment-status/index.htm#1
Awan-Legal : You would need to show as follows:
Awan-Legal : You have access to not less than £200,000orYou have access to not less than £50,000 from:1 or more registered venture capital firms regulated by the Financial Services Authority;1 or more UK entrepreneurial seed funding competitions listed as endorsed on the UK Trade and Investment website, or1 or more UK government departments, which have made the funds available for the specific purpose of establishing or expanding a UK business.orYou have access to not less than £50,000 and:are applying for leave to remain; andhave, or were last granted, leave as a Tier 1 (Graduate entrepreneur) migrant.orYou have access to not less than £50,000 and:are applying for leave to remain; andhave, or were last granted, leave as a Tier 1 (Post-study work) migrant; andwere registered with HM revenue and Customs as self-employed, or a registered director of a new or existing business no more than 3 months before your application; andare engaged in business activity, other than the work necessary to administer your business. Your occupation must appear on the list of occupations at the National Qualifications Framework level 4 and above, as stated in the codes of practice for Tier 2 sponsors.25 pointsThese funds are held in 1 or more regulated financial institutions 25 pointsThese funds are disposable (free to spend) in the UK 25 pointsEnglish language You can speak English to the required standard 10 pointsMaintenance You have enough money to support yourself while you are in the UK 10 pointsYou may also need to meet an additional requirement if you are in the UK as a Tier 4 student, or in one of the student categories under the Immigration Rules that were in place before March 2009.
Customer:

ok...i have already checked this some time ago...I would like to know if UKBA uses these points from HMRC for the purposes of identifying one to be an "illegal worker"....

Customer:

Well...I am aware of these...

Customer:

just let me know if UKBA uses these points from HMRC for the purposes of identifying one to be an "illegal worker"....

Customer:

or if there are any other rules it uses to place one into an "illegal worker" category...in other words...can i use these HRMC's employment statuses as the one to prove that i am self emplyed...

Awan-Legal : There is a fine line between self employment and employment when working as a contractor on an agency basis - it depends on the way you nature of your agreement and work with the agency. It would be worth setting out an agreement to make sure that this shows self employment. Also, the 2 employees in the future cannot contract out their services through your company as this would be considered as self employment. They would have to have distinct positions within your company as employees so could not work on an agency basis.
Awan-Legal : As long as you are the director of a company and self employed within the code requirements above (and meet the rules above), you will not be classed as an illegal worker.
Customer:

ok thank you very much for your time...that was helpful..

Awan-Legal
Awan-Legal, Solicitor
Category: UK Immigration Law
Satisfied Customers: 128
Experience: Specialist in immigration law with the highest level of accreditation in this area and with many years experience.
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Awan-Legal
Awan-Legal, Solicitor
Category: UK Immigration Law
Satisfied Customers: 128
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Experience: Specialist in immigration law with the highest level of accreditation in this area and with many years experience.

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