Evidence of Employment Creation (Extension Application)

Hi all, I have a three questions regarding employment creation, which should be relevant to other extension applicants. I am applying for an extension in mid-2016.

Here is some background:

I formed my company at the start of 2013 as the sole director, and began trading shortly after.

I brought on another director / shareholder in on mid-2014. This individual is a UK citizen and did NOT invest any funds in my company. We are both working full-time and are currently on payroll earning over the national minimum wage. His tax code is 1000L. 1) My first question is, can directors working full-time and getting paid above the minimum wage be considered as full-time employees satisfying the employment creation requirements or are only non-director employees considered?

In early 2015, I hired another lady for a full-time role, yet she currently works part-time somewhere else however still puts in 40 hours working from home for my company, and earning above minimum wage. 2) My second question is, would her part-time role make a Home Office Case Worker uneasy? My guess is it shouldn’t matter so long as she is working full-time for me. She completed a P46 and submitted to our payroll provider as part of her full-time employment with my company. Her tax code is “BR”.

Lastly, my third question is regarding the policy notes, where it states "169. The employer must keep a record of the Employee Payment Record for at least three years. This form will show details of the earnings for the employee for each week that he/she worked for the employer." - I've got the P11's, however these show earning for each month, as how they are reported to HMRC and how we pay taxes for PAYE, not each week. 3) My third question is, will this be a problem or should I get my payroll department to show weekly earnings? Seems pedantic and its best to stick to policy word for word but just wanted to confirm how others are prepping their documents for Home Office.

Thank you any assistance or comments on these questions.

1) My first question is, can directors working full-time and getting paid above the minimum wage be considered as full-time employees satisfying the employment creation requirements or are only non-director employees considered?

- Yes you can work for your own company- i.e. employed by your own company where you are director. No problem here.

2) My second question is, would her part-time role make a Home Office Case Worker uneasy? My guess is it shouldn’t matter so long as she is working full-time for me. She completed a P46 and submitted to our payroll provider as part of her full-time employment with my company. Her tax code is “BR”.

- Yes no problem here either. As long as they put in 30+ hours / week. Whether they work 2 jobs or 10 it does not matter, as you technically cannot control your employee being dually employed. Can you ? So no problem here.

I've got the P11's, however these show earning for each month, as how they are reported to HMRC and how we pay taxes for PAYE, not each week. 3) My third question is, will this be a problem or should I get my payroll department to show weekly earnings?

- Yes this is a common problem/ question. Where the payroll runs monthly but UKVI asks weekly.
I have spoken to the UKBA(by email) and they said that it is not a problem and monthly is fine. And they will just use 130 hrs/ month as the calculation. So what they will do, is take the amount on the payslip and divide it by the hourly rate which you claim you have paid. And if the number is > 130 each month then its fine. As they know that the policy was not drafted properly. 130 hrs = (1560 hrs/12 months).

The above are not my words, but confirmed in writing from UKVI 1 year back on email.
Now don't ask me to share the email here, because I wont. And the email address is the same that we all know, so if you want to re-confirm you can shoot and email there - UKBApublicenquiries@ukba.gsi.gov.uk

Thanks Rahul for the good info!

Just wanted to clarify my first question: Can the Director I hired be used as evidence of employment creation? He is a UK citizen and working full-time. I read somewhere else on a thread in this forum that Home Office would not consider Director hires as proof of a new full-time position created for some reason, but that may be in regards to 'non-operational' Directors who are not earning a salary nor working full-time.

So if an employee works 30hrs per week, but takes time off for a holiday, won't that be <130 hrs in that particular month?

Just wanted to clarify my first question: Can the Director I hired be used as evidence of employment creation? He is a UK citizen and working full-time. I read somewhere else on a thread in this forum that Home Office would not consider Director hires as proof of a new full-time position created for some reason, but that may be in regards to 'non-operational' Directors who are not earning a salary nor working full-time.

- I do not know how they will treat this situation. Better you write to them to clarify.

So if an employee works 30hrs per week, but takes time off for a holiday, won't that be <130 hrs in that particular month?

- If you paid the employee during their holiday, then its fine. Everyone knows that employees will take sick days/holidays etc and its not under your control. Per law you should provide your full time employee of 21 paid holidays as minimum/ year.
Also which payslips mentions number of days worked ?

Hi everyone ,

My situation is similar , I am looking forward to hire someone who is of 19 yrs of age and a full time university student , and will work from home for 30 plus hours for me . The only reason I am thinking of hiring her is because when interviewed , she excels in the kind of work I need . My question is will there be a problem because of her being full time univerity student? and her age ?

Any help will be greatly appreciated .
Regards
Celina.

Hi,

I am pretty sure you being employed by your own company does not count towards "two-job creation criteria for extension application".

This is because those two employees need to be settled workers/UK citizen, since you are not you cannot be an employee to satisfy the criteira ?

I also think surely you being employed by your own company does not count. Simple, you are not 'settled'