Contract job

I am currently working as a contractor through my Limited company and the money is pay into my company bank account.

Is this breaching the new immigration rule/law or not.

Please advice me as I don't want to breach the rule and I will be completing my 10 years in UK next year.

Many thanks in advance

Dayyurite wrote:I am currently working as a contractor through my Limited company and the money is pay into my company bank account.

Is this breaching the new immigration rule/law or not.

Please advice me as I don't want to breach the rule and I will be completing my 10 years in UK next year.

Many thanks in advance

Is your work as a contractor amounts to just a replacement job that the client can hire?

Does your contract say money is paid by the hour?

If your answer is 'yes' to any on the above then you might be in trouble.

Read through this thread Cannot understand this new rule and this website http://www.hmrc.gov.uk/employment-status/index.htm#1

Hope that helps.

Dayyurite wrote:I am currently working as a contractor through my Limited company and the money is pay into my company bank account.

Is this breaching the new immigration rule/law or not.

Please advice me as I don't want to breach the rule and I will be completing my 10 years in UK next year.

Many thanks in advance

Hello Dayyurite,
It can be or can not be because depends on the case worker. But you are working for your company not directly for some other company then you should be fine. I am sure you are generating invoices for your work. Sounds looks ok.

Regards

Thank you very much for you reply.

My company is paid per day and the money is paid into my company bank account.

Obviously for any contract the any business/company can easily replace a contractor with another contractor.

I am thinking of leaving the contract but it will be difficult to put food on the table for family without this job as business activities apart from this contract is not generating enough now

many thanks

dayyurite

Dayyurite wrote:Thank you very much for you reply.

My company is paid per day and the money is paid into my company bank account.

Obviously for any contract the any business/company can easily replace a contractor with another contractor.

I am thinking of leaving the contract but it will be difficult to put food on the table for family without this job as business activities apart from this contract is not generating enough now

many thanks

dayyurite

Yes, any contract can be easily replaced by another CONRACTOR. But, does that contract amount just to a replacement job? It may or may not. The contract could amount to a job profile too, as in paid by the hour - working at the client's location - working hours defined by the client, etc., as defined in the link I provided earlier. But, all contracts/contractors DON'T amount to a job replacement. So, you should be careful to make your contract NOT look like one.

At the end of the day, it's how you write up your contract, not exactly whether it can be replaced by another contractor or not. Does the contract's t&c and description give the impression to UKBA/HO that you are a replacement 'employee'? Or does the contract give the impression that you are 'self-employed'? Make sure your contract falls into the latter.

i agree with the points raised by attahaas.

during my appeal last year, the HO's lawyer raised an objection with one of the contracts I had submitted with my application/appeal.

the immigration judge in her decision referred to the clause in my contract which clearly stated that i was not an employee of the company.. . . . blah blah and that effectively knocked out the point raised by HO's rep. the judge also referred to my business account, invoices and the corporation tax i had paid to HMRC.

so make sure that your contract is very detailed and explicit and it states all the business terms as clearly as possible especially clauses emphasising that you are self employed, etc. My contact was about 20pages in small print and I was marvelled that the immigration judge took out time to read every single detail of the contract.

the amusing thing is that the caseworker didnt pick any holes on my contract but the HO's lawyer- with their usual antics ignored all the refusal points raised in the refusal letter and instead raised new objections on the hearing date.

so as long as your contract is very clear, detailed and explicit, you have nothing to worry about.

finally, please note that running a business is not all about ''buying goods or selling goods or trading''. A business can also provide a ''service'', and that ''service'' can be provided to banks, oil companies, engineering firms, etc.

as long as number of hours are not fixed it should be fine because some contractors work in sessions(and duration of session could be variable) so just follow the link of HMRC and it is very clear.Secondly to be employee they say yes to all Q so if one of them is yes or no it does not matter(different contractors have different situations) but it is better to make a fixed amount contract and get 2 monthly or 3 monthly payments in to company account.If no body can direct you and you are responsible for required out put then there should not be any problem.Hourly rarte does not mean employee if not fixed number of hours. you can justify if some one is working in that role already and you are just providing guidance for or you have taken one aspect of job to give out put for that.I hope you understand.

Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

Fixed hours could be something of a doubt so try to avoid that thing per hour/per session should be ok as long as session is not specified by number of hours(so it is for me difficult to comment on 7.5 fixed or not?
Someone else might explain.

Dayyurite wrote:Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

It doesn't quite sound like a problem free contract IMHO. A problem free contract, for example, would sound like a few months or a periodic contract with no number of hours restriction, you would provide service as and when required. Some IT contracts define the requirements for a particular program/app the client wants the contractor to develop within, say, 6 months for 20K (example only) with other technical terms and conditions. This is what the HO might look for when you are a self-employed contractor on a T1E visa.

What you provided to apply for visa doesn't matter at all. What you ARE DOING matters for extension. In your case, as "audit and compliance consultant" you should just provide the service based on requirements defined in the contract for a particular period of time without the limit of working hours, for a specified amount. You should define the scope of the service provided and come to an understanding with the client. Any more work out of the scope of work/service defined in the contract should be charged additionally. It shouldn't matter whether you work 2hrs or 20hrs/day, as long as you provide your services per the contract you should get paid the amount agreed for.

So long as your contract is valid, the client should pay you/your company, even if they don't need your services for a few days and need more service on other days. While this is the case, if the service requires you to be present at the client's location, it's OK too.

Your contract with full day rate with 7.5hrs restriction does sound very analogous to per hour rate. So, it is not quite a problem free contract. I would strongly recommend you to rewrite the contract to follow the HO guidelines to fit the definition of 'self-employed', while keeping the interests of both parties.

attahaas wrote:

Dayyurite wrote:Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

It doesn't quite sound like a problem free contract IMHO. A problem free contract, for example, would sound like a few months or a periodic contract with no number of hours restriction, you would provide service as and when required. Some IT contracts define the requirements for a particular program/app the client wants the contractor to develop within, say, 6 months for 20K (example only) with other technical terms and conditions. This is what the HO might look for when you are a self-employed contractor on a T1E visa.

What you provided to apply for visa doesn't matter at all. What you ARE DOING matters for extension. In your case, as "audit and compliance consultant" you should just provide the service based on requirements defined in the contract for a particular period of time without the limit of working hours, for a specified amount. You should define the scope of the service provided and come to an understanding with the client. Any more work out of the scope of work/service defined in the contract should be charged additionally. It shouldn't matter whether you work 2hrs or 20hrs/day, as long as you provide your services per the contract you should get paid the amount agreed for.

So long as your contract is valid, the client should pay you/your company, even if they don't need your services for a few days and need more service on other days. While this is the case, if the service requires you to be present at the client's location, it's OK too.

Your contract with full day rate with 7.5hrs restriction does sound very analogous to per hour rate. So, it is not quite a problem free contract. I would strongly recommend you to rewrite the contract to follow the HO guidelines to fit the definition of 'self-employed', while keeping the interests of both parties.

This is very good advice IMO

Don't give the HO a chance to accuse you of not being self-employed. The contract is the primary piece of evidence for this and so it has to be very clearly stated, leaving no doubt.

The problem is that it does sound a bit like you are employed, so all the more reason to state it all clearly in the wording of the contract.

Good luck!

Dayyurite wrote:Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

Are you paid/contracted via an agency?

Wanderer wrote:

Dayyurite wrote:Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

Are you paid/contracted via an agency?

I am contracted and paid by agancy

As you are not applying for extension. And are planning to apply for 10 years(its requirements are different and it will be switching) so chances are they will not ask for contracts etc. However it depends on caseworker.

Dayyurite wrote:

Wanderer wrote:

Dayyurite wrote:Thank you all for the response. I really appreciate it.

I receive daily rate for the contract and work at client office which is a bank.

Also, I must be at work for at least 7.5hrs for a full day rate or less than 7.5hrs for half day rate.

The business I used to collect visa is Accounting services and my contract with bank is audit and compliance consultant and contract is in written by bank with my company.

Is that a problem free contract for HO purpose

Are you paid/contracted via an agency?

I am contracted and paid by agancy

I am not sure if i am correct but as far as i know, if you go through the documents required for extension don't include contracts papers, they just need audited or unaudited accounts of the company in which investment has been done and payee details of the company in which you created 2 or equivalent to 2 full time jobs, that;s it.

dear friends,
got a similar question for a ltd company, what if, a contract is:

- for a certain number of minimum hours per week (only on the papers, in reality one need to work way more hours to achieve a set level of target)

- at CLIENT's location through a consulting firm who has sub contracted it on behalf of the CLIENT (consulting firm also have their own recruitment agency but the sub-contract is with the consulting firm directly showing their name not the recruitment agency's - like a parent and subsidiary company)

- on the contract it also says one have to pay their own taxes / NI contribution, one will not get paid for any holidays or leaves they may take, one works as a self employed person for this type of work, one will get paid for their labour

- day rate contract, paid by the consulting firm (parent company) into the business account on monthly basis than one have to pay their own taxes

does it means employment or self-employment. bit confused as its bit ambiguous and shuffles between the two. have also checked the HMRC's link and the answers for all the self-employment questions is not 'YES' and its the same for the employment questions as it is not 'YES' for all. please help and provide your valuable advice.

thanks in advance

although it is a bit of mix and match but you can argue that it is a self employment contract. all the best