Urgent help on contracting under Tier1 Entrepreneur

Hello guys,
I got my Tier 1 Entrepreneur visa last year from PSW route doing consulting business. However, I was tricked into a contract. Here is the situation:

I signed a contract with a recruitment agency as a contractor for 9 months. What I didn't know was that the recruitment agency signed an agreement with a HR outsourcing company and the outsourcing company put me on their payroll. Then I was sent to work for the end client on full time basis.

I only learnt about this arrangement near the end of my contract. In fear of being fined, I claimed this contract inside IR35 this April.

Before and during this contract, I did have a few contracts with several clients, thought the income was very small compared to this contract.

Will I be in trouble? What can I do to correct this?

Any help would be much appreciated.

Thank you.

You can always phone to hmrc and ask them for your employment history. If they have used ur national insurance then agency name will come there. However as you have already claimed it under ILR35, then i am not sure what affect will it have on extension, as i think now your accounts will be prepared in different format. Which can easily highlight this contract.

entrepreneur123 wrote:You can always phone to hmrc and ask them for your employment history. If they have used ur national insurance then agency name will come there. However as you have already claimed it under ILR35, then i am not sure what affect will it have on extension, as i think now your accounts will be prepared in different format. Which can easily highlight this contract.

Thanks for your reply. Shall I quickly switch to other visa categories? Will this contract affect my condition to stay now?

kt2005 wrote: Thanks for your reply. Shall I quickly switch to other visa categories? Will this contract affect my condition to stay now?

I don't think it should matter that much as UKBA has added this possibility to the rules recently and it did not exist last year when you got this visa.
In fact, one of my friends worked in Discovery Channel as IT Contractor through Agency like yourself unknowingly that he will treated as employee by HMRC .On top of that he applied Tier 1 Entrepreneur Visa and got the visa in three months time. No questions asked. He applied last year and the new rules defining what is self employment were not introduced that time.

I will suggest to you to get immigration help from reputable Immigration advisory before trembling with fear and everything will be fine. Be bold to handle the problem like a true entrepreneur.

Best of Luck!!