Looking For Tier 2 Sponsor

Hi there guys i am new to this forum, can some one tell me what is umberella company, I heard from agents that they have sponsors who can sponsor me but i need to pay monthly tax. But thing is they are charging huge sums like 8 to 10 grand and on top of it you need to pay your own tax and NI.
Can some one help me what shall i do. My Tier 1 is rejected and I have lodged an appeal. I have limited work experience.
Please Help me.
Thanks in Advance.

Umbrella companies can not offer tier 2 employment however there are a good number of Sponsors undertaking this abuse.

Essentially you go and find a job after you have been granted you visa on the basis of a false COS for a job that does not exist and that you will never be paid for.
You get the job offer then your Sponsor produces a contract for the supply of services to the company you hope to work for. If the company accepts the terms (most dont as they are liable for a £20k fine if they get caught). If the company is stupid enough to go along with the scam then yout Sponsor invoices for your services much like an employment agency thereafter.
You get 60 -70% of the invoice amount and are treated as being sel employed for tax purposes so they dont pay for your tax or NI.

There are also a number of fraudulent companies that are offering this service that are not even Sponsors. They just take your money and run. Have a look at foolboy posts for his sorry tale of being ripped off.

If you do find such a Sponsor you are just a disposable bit of meat that they treat as a slave. If you dont agree to their term they just cancel your COS and sack you.
It is possibly the worst form of work enslavement in the UK apart from out and out slavery itself. You have no employment rights as you are participating in a fraud,you get caught and it is you that gets removed for knowingly participating in the fraud. The worse that happens to them is they lose their licence.

Good luck

Frontier Mole wrote:Umbrella companies can not offer tier 2 employment however there are a good number of Sponsors undertaking this abuse.

Essentially you go and find a job after you have been granted you visa on the basis of a false COS for a job that does not exist and that you will never be paid for.
You get the job offer then your Sponsor produces a contract for the supply of services to the company you hope to work for. If the company accepts the terms (most dont as they are liable for a £20k fine if they get caught). If the company is stupid enough to go along with the scam then yout Sponsor invoices for your services much like an employment agency thereafter.
You get 60 -70% of the invoice amount and are treated as being sel employed for tax purposes so they dont pay for your tax or NI.

There are also a number of fraudulent companies that are offering this service that are not even Sponsors. They just take your money and run. Have a look at foolboy posts for his sorry tale of being ripped off.

If you do find such a Sponsor you are just a disposable bit of meat that they treat as a slave. If you dont agree to their term they just cancel your COS and sack you.
It is possibly the worst form of work enslavement in the UK apart from out and out slavery itself. You have no employment rights as you are participating in a fraud,you get caught and it is you that gets removed for knowingly participating in the fraud. The worse that happens to them is they lose their licence.

Good luck

Thanks Frontier Mole for your kind help, I have understood a little bit. But they say you can do a job whatever you want the only thing is you must have to pay a tax and NI amount per month. And that amount is like 450£ a month, based on 20.6K annual salary. They say your sponsor will be either a hotel or a big company, whose liscense will never be terminated.
I agree with you this is worst form of work salavery in UK.

It's ironic everyone here seems to be against contracting but on every post there's the ad "UK Tier 2 Sponsors for daily rates of £180 and above. Call workpermit.com 0344 991 9222" and no one has the courage to say anything.

oadamson wrote:It's ironic everyone here seems to be against contracting but on every post there's the ad "UK Tier 2 Sponsors for daily rates of £180 and above. Call workpermit.com 0344 991 9222" and no one has the courage to say anything.

I have contacted them oadamson but work permit asked me if i had a sponsor, i say said no, and they ask me if i am earning 180£ a day, how it can be possible if a person is earning 180£ a day and he cant find a sponsor for himself ????

Hi ,
I've been on job search for quite a long time and even compromised on contract job's through Umbrella company's. But going through these post I see the real picture of these company's. Frontier Mole has clearly explained about this .

Frontiermole has definitely given a fantastic explanation. Wish we had a Thank You button on the forum.

What I find intriguing is this - how are these umbrella companies asking people to pay their own NI and Tax as that is a clear violation to the Tier 2 concept of not allowing self employment.
Or am I wrong in my understanding that one CAN do that and still be holding a valid Tier 2?

The Umbrella companies can not account for an individuals tax and NI as that places them as an employer which defeats the whole object of being an umbrella company.
There is an HMRC clamp down on umbrella companies in general and the new Finance Act 2014 has come into force squeezing the whole concept of this style of employment contracting.
Tier 2 does not allow any aspect of self employment. So using an umbrella company is outside of the guidance.
It is more the fear of HMRC than UKVI that is driving change in the recruitment agency / contractor market. That is why there is less contract work as a general rule and the resulting imposition on Tier 2 employees on this abuse coming to the surface being unable to find new contracts.
There are thousands of tier 2 contractors out there that should not be doing this activity and their Sponsors are not concerned if they work or not because if they are not working they don't get paid. It is a large scale abuse that needs to be brought to an end but there is no incentive for the tier 2 individuals to vote themselves out of a job / visa. Turkey's voting for Xmas type thing.
It will come to a head in the coming months when there is a significant number of tier 2 migrants without employment and it becomes more noticeable.

Thanks Frontiermole.. I understand it now.

Umbrella company as detailed by Frontier mole is great and happens not to be the right way to get a sponsor. What else is the route in getting a sponsor. comment's from experienced member's will be of great help.