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UK_Lawyer, Solicitor
Category: UK Law
Satisfied Customers: 2458
Experience:  I am a qualified solicitor and an expert in UK law.
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Tom, I know a person who is on a Tier 1 (Entrepreneur)

Customer Question

Hi Tom,
I know a person who is on a Tier 1 (Entrepreneur) Visa (from August 2012) through the 50k PSW route.
This person has a software business which is fully compliant with all visa rules.
He now wish to open a second business as a retail store. He will be a director and shareholder (Not Paye), he would have invested money, be his own boss, signed agreements, leases etc (sufficient proof he is not an employee)
The question is would this be acceptable as a second business? ...the reason i ask is that retail is not NVQ level 4 or above and that he will be spending time working in his new retail business (as well as his first software business).
Submitted: 2 years ago.
Category: UK Law
Expert:  UK_Lawyer replied 2 years ago.
Hi, thank you for your question, I will be happy to help you today.
What would his role be in the business, what job title will he be working under?
Kind regards
Customer: replied 2 years ago.

Director, and in charge of the day to day running of the business.

Customer: replied 2 years ago.

Even though i have answered 'Director' and 'in charge of the day to day running of the business', i cannot see why more information would be needed? (with all respect).

The reason i say this, according to the document 'Tier 1 (Entrepreneur) of the points bases system - policy guidance' published by the Home Office UK Border Agency Version 08/2012 it states as a condition of stay

'no employment other than working for the business or businesses that you have established, joined or taken over'

- according to this the individual will be in no employment what so ever, he will be a director. Satisfying this point, with substantial proof too.

The next point is from the same document where it states:

'In an occupation skilled to graduate level Other than the work necessary to administer the business, your main business activity must be working at graduate level. We will not take into account the tasks involved with the running of the business for this assessment. For example • If the business is software sales and your main activity is developing software, you may qualify for points; • If the business is a taxi firm, the main occupation is driving a taxi and you will not score points even though you manage the business. Your main activity is providing a taxi service which is not skilled to graduate level. Guidance on what is a graduate level occupation (also called level 4 and above of the National Qualifications Framework) is available in the codes of practice which are available on our website:'

-His 'Main Business', the business which he applied for his Visa on is developing software, which is point scoring.

As a second, unrelated business, his activity will be under NVQ level 4, meaning no points can be achieved, however as it is not his 'Main Business', he does not need points and does not want them.

If i read this correctly am i then right in saying according to the information above there is nothing stopping the individual being a Director and working within this own second business under NFQ level 4?

Customer: replied 2 years ago.
Relist: Answer came too late.
need answers quicker
Expert:  UK_Lawyer replied 2 years ago.
Thank you for your reply, I apologise for the delay in reverting back to you.
The reason why I asked what job role he had in the business was for precisely this reason. There is nothing preventing him from running his own business provided that the work he is undertaking is at or above a graduate level. If he does have a second business and is undertaking work as a 'software developer' then he will not be in breach of the rules, regardless of if the actually business as a whole is a retail business which would be below NQF level 6
It is only when he is working and undertaking tasks such as people management or undertaking basic administrative duties (only) will he be in breach of his visa conditions.
I hope this answers your question if however you feel that the answer does not cover all the points raised in your question please do not hesitate to ask further questions until you are satisfied with my answer.
Kind regards