Contract work through Ltd company on T1 Ent Visa

Hi guys

I've been contracting on and off since 2011 and I got my entrepreneur visa in December 2014. I submitted 2x contracts between a Bank and my business to show my business activities with my application with other documents. Now my current client refused to renew my contract due to a change made by the HO that states contract work will not be permissible with entrepreneur visa. However the HO has made this change in April 2014 or April 2015 (I'm not exactly sure) and I applied for my current entrepreneur visa in July 2013. The HO had refused my application first and then I had to go through court to get the visa finally in December 2014.

So here is my question, will this change be applicable to my Visa? I was under the impression that any change made after my application will NOT be retrospectively applicable to me. Can anybody shed some light in this please? Any comment will be highly appreciated.

NB. I have already told the agency that the change should not be applicable for me as I applied for the visa under a different terms and conditions which does not say contract work is not allowed.

Regards

Working in capacity of an employee was never allowed under Tier 1E as it is a form of employment, no matter if you conducted it via your own company.
You must not undertake contact work in which you are working in capacity of an employee for another company. That is against the rules and your visa can be curtailed. You must abide by the current rules

zimba88 wrote:Working in capacity of an employee was never allowed under Tier 1E as it is a form of employment, no matter if you conducted it via your own company.
You must not undertake contact work in which you are working in capacity of an employee for another company. That is against the rules and your visa can be curtailed. You must abide by the current rules

Hi Zimba
But if you are running Business consultancy and you are a qualified business consultant , and if you have contract from any company to provide business consultancy with your firm . Can you not go yourself and provide business consultancy to that firm ? it would be employment and it wouldn't be working on NI anyway it would be working as a consultant providing services on your company behalf.
correct me if am wrong thanks

Not if that is a contract of service. Again, working in capacity of an employee is a form of employment and there are even tax rules (IR35 rules) that cover this. You should read the dentition of employment status from HMRC website: https://www.gov.uk/government/publicati ... tus-manual

Technically an employee can leave employment on Friday, start a company and begin working for the employer as a 'consultant' via his/her own company on Monday. This way you end up paying less NI tax and get benefits of a director even though you are still remain in capacity of an employee which means nothing has changed. To avoid this, HMRC still considers you an employee and imposes IR35 rules on you !

If you are working in capacity of an employee, you have a contract of service which makes you an employee of your client, not an entrepreneur or a business owner. Under Tier 1E route, you MUST not take any employment or work in capacity of employee as ANY form of EMPLOYMENT is against the conditions of your stay.

If your contract makes you personally responsible for the work, demands you to work in a certain place at the certain time and manages your work schedule, you are pretty much an EMPLOYEE. This kind of work is AGAINST the Tier 1E conditions no matter if you register as self-employed or a director

zimba88 wrote:Not if that is a contract of service. Again, working in capacity of an employee is a form of employment and there are even tax rules (IR35 rules) that cover this. You should read the dentition of employment status from HMRC website: https://www.gov.uk/government/publicati ... tus-manual

Technically an employee can leave employment on Friday, start a company and begin working for the employer as a 'consultant' via his/her own company on Monday. This way you end up paying less NI tax and get benefits of a director even though you are still remain in capacity of an employee which means nothing has changed. To avoid this, HMRC still considers you an employee and imposes IR35 rules on you !

If you are working in capacity of an employee, you have a contract of service which makes you an employee of your client, not an entrepreneur or a business owner. Under Tier 1E route, you MUST not become and employee or work in capacity of employee as any form of EMPLOYMENT is against the conditions of your stay.

Hi zimba
Thanks for your reply
But i am but confused if you are running a business consultancy firm and you are a business consultant as well so how you will show that you are providing consultancy without going there. you have to go there and help them in business to make profit and to save money. do you consider this is employment as well. And considering your point of you , if you are running business consultancy firm how you will show you are working as NVQ level 4 level job in your business.
or in General how Business consultancy firm can proof they are doing business
or Business Consultancy is not allowed on Tier 1E
thanks in advance

You need to review the terms of your contracts and see if you are working in capacity of an employee. Many solicitors provide contract review services for the same reason !!! You can ask these questions for a start:

- Are YOU personally responsible for the work ?
- Is the contract between YOU and the client rather than your company and the client ?
- Does the client care about your immigration status ?
- Can you send some other expert/consultant/employee from your business to do the job in your place or the contract demands YOU to be there ?
- Does the contract control and mange your time, place of work, time off etc ?
- Are your duties pretty much very similar to the duties of an employee of such company/client ?
- Is your position simply a vacancy that normally an employee is expected to fill ?

If you answer Yes to most of these questions and your contract terms require you to work in that capacity, you ARE working in capacity of an EMPLOYEE and your work is a form of employment. Working in such capacity is NOT allowed under Tier1E rules. You must seek legal advice if you are unsure

zimba88 wrote:You need to review the terms of your contracts and see if you are working in capacity of an employee. Many solicitors provide contract review services for the same reason !!! You can ask these questions for a start:

- Are YOU personally responsible for the work ?
- Is the contract between YOU and the client rather than your company and the client ?
- Does the client care about your immigration status ?
- Can you send some other expert/consultant/employee from your business to do the job in your place or the contract demands YOU to be there ?
- Does the contract control and mange your time, place of work, time off etc ?
- Are your duties pretty much very similar to the duties of an employee of such company/client ?
- Is your position simply a vacancy that normally an employee is expected to fill ?

If you answer Yes to most of these questions and your contract terms require you to work in that capacity, you ARE working in capacity of EMPLOYEE and your work is a form of employment. Working in such capacity is NOT allowed under Tier1E rules. You must seek legal advice if you are unsure

Hi Zimba
I understand ,it depends how you contracted with them what to write in there and how you are working with them and how you are providing services
thanks

Dear zimba,

Sorry for wrong post last time....actually i suppose to post in this discussion. Let me repeat ....
I applied T1 Ent(50k) in Feb-2013 after PSW. got rejection....then win the case in 2015.
now i am doing Contract work through Ltd company but parrellal i am doing two more contract work(freelance at home). After reading this discussion i feel that we are not allowed the work as contractor.....so in extension we have to counter this problem so what we suppose to do....

should we make the contract which clearly describe that my company give the services to company b.
"Services for IT" not Services of IT
or
please give me more advise which will truly help me out .....

Regards

zimba88 wrote:You need to review the terms of your contracts and see if you are working in capacity of an employee. Many solicitors provide contract review services for the same reason !!! You can ask these questions for a start:

- Are YOU personally responsible for the work ?
- Is the contract between YOU and the client rather than your company and the client ?
- Does the client care about your immigration status ?
- Can you send some other expert/consultant/employee from your business to do the job in your place or the contract demands YOU to be there ?
- Does the contract control and mange your time, place of work, time off etc ?
- Are your duties pretty much very similar to the duties of an employee of such company/client ?
- Is your position simply a vacancy that normally an employee is expected to fill ?

If you answer Yes to most of these questions and your contract terms require you to work in that capacity, you ARE working in capacity of EMPLOYEE and your work is a form of employment. Working in such capacity is NOT allowed under Tier1E rules. You must seek legal advice if you are unsure

Already answered as per above.