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Tier 1 Entrepreneur PSW route closing from tomorrow

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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iworker
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Tier 1 Entrepreneur PSW route closing from tomorrow

Post by iworker » Thu Jul 10, 2014 12:49 pm

For information, the PSW route is closing from tomorrow as per ministerial statement today.

https://www.gov.uk/government/speeches/ ... n-rules--8

rizwan567
Diamond Member
Posts: 1098
Joined: Sat Mar 23, 2002 1:01 am
Location: Greater London

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by rizwan567 » Thu Jul 10, 2014 1:20 pm

shock, shock, shock.... I have just gone through this news and got bit confused. One of the paragraph says:

The Tier 1 (Entrepreneur) remains open. Those who already have leave in the category will continue to be able to extend their stay. The new restrictions will not apply to those qualifying on the basis of seed funding or funding provided by another government department, nor, in the case of those switching from the Tier 1 (Post Study Work) route, will they apply to those who have already established a genuine business. Those who graduate here will continue to be able to apply to extend their stay under the Tier 1 (Graduate Entrepreneur) category, which is significantly undersubscribed. Those who have a genuine intention of establishing a business here will also continue to be able to apply from overseas.

Does the above in bold means it is open for PSW route? Please share your views.

kuzaaah
Junior Member
Posts: 68
Joined: Fri May 16, 2014 10:35 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by kuzaaah » Thu Jul 10, 2014 1:21 pm

This is surprising. That means those intending to apply via the PSW route will be subjected to intense scrutiny now even if one has got a genuine interest to establish a business. This is sad!

kuzaaah
Junior Member
Posts: 68
Joined: Fri May 16, 2014 10:35 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by kuzaaah » Thu Jul 10, 2014 1:27 pm

Rizwan,
Let us not be fooled. The second paragraph summarizes the aim of the new policy.

"These changes will implement 'restrictions' on the ability of those already present in the UK as a Tier 4 (Student) or Tier 1 (Post Study Work) migrant to make an in-country application for an extension of stay as a Tier 1 (Entrepreneur)"

Every other positive said is irrelevant. It only means that going forward there will be RESTRICTION on application from those who apply via the PSW visa and if you submitted an application via PSW via route, then there would be a greater scrutiny to ensure that you are a genuine entrepreneur. The bar is high NOW.

NAR
Junior Member
Posts: 72
Joined: Tue Apr 15, 2014 3:06 pm

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by NAR » Thu Jul 10, 2014 1:40 pm

Genuine people still have the same chance as before. The restrictions are on those that are not genuine. They could have closed the entire scheme all together but this way they kept it open and put some restrictions to give themselves a little more freedom for decision and verification. I mean come on, we all know how people been abusing the system on almost everything, especially the appeals and such. And those were hurting genuine applicants.

I guess their sudden decision could means they did not want a flood of applicants to apply before the deadline which also suggests they will still treat applications already submitted without restrictions. Or at least i hope so.

kuzaaah
Junior Member
Posts: 68
Joined: Fri May 16, 2014 10:35 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by kuzaaah » Thu Jul 10, 2014 1:56 pm

When the word 'restriction' is used, what are they restricting? Who are they stopping or hindering from doing something? My personal interpretation is that application from PSW holders are being restricted. Only those 'already doing a genuine business' are likely to be successful. No speculative (yes that word was mentioned in the statement) or fraudulent applications would be considered. Pls speculative is different from fraudulent! That should be noted. Many PSW holders who apply do that on speculative grounds in the sense that they are not running the business already, paying Corp tax. Only a few people own a running business already. The current policy guidance where an intending tier 1 entrepreneur applicant is required to form a business within three months has created a whole pool of speculative applicants. More so,the abuse of the system is rife and the sins of a very few is affecting the chances of the majority of people who have real interest in submitting an application to do genuine business in the UK.

NAR
Junior Member
Posts: 72
Joined: Tue Apr 15, 2014 3:06 pm

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by NAR » Thu Jul 10, 2014 2:12 pm

kuzaaah wrote:More so,the abuse of the system is rife and the sins of a very few is affecting the chances of the majority of people who have real interest in submitting an application to do genuine business in the UK.
So in your opinion, the % of people applying to switch and are non-genuine are small?

I think its the other way around. I think the majority of the people probably are abusing the system.

The report also mentioned
"It has, however, become clear that the majority of those applying in-country for leave in the category are those who have come here for the purpose of study and are making speculative or fraudulent applications simply to extend their stay in the UK"

I totally agree how frustrating this could be on genuine applicants who are putting their future on a temporary migrant worker who are probably not fully trained on how to filter genuine and non-genuine applications and then on top of that are more restrictions.

rizwan567
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Posts: 1098
Joined: Sat Mar 23, 2002 1:01 am
Location: Greater London

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by rizwan567 » Thu Jul 10, 2014 2:33 pm

kuzaaah wrote:Rizwan,
Let us not be fooled. The second paragraph summarizes the aim of the new policy.

"These changes will implement 'restrictions' on the ability of those already present in the UK as a Tier 4 (Student) or Tier 1 (Post Study Work) migrant to make an in-country application for an extension of stay as a Tier 1 (Entrepreneur)"

Every other positive said is irrelevant. It only means that going forward there will be RESTRICTION on application from those who apply via the PSW visa and if you submitted an application via PSW via route, then there would be a greater scrutiny to ensure that you are a genuine entrepreneur. The bar is high NOW.

PSW route is not closing, please read page 22 of this
https://www.gov.uk/government/uploads/s ... hc-532.pdf

amnaali03
Member
Posts: 120
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Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by amnaali03 » Thu Jul 10, 2014 2:36 pm

rizwan567 wrote:
kuzaaah wrote:Rizwan,
Let us not be fooled. The second paragraph summarizes the aim of the new policy.

"These changes will implement 'restrictions' on the ability of those already present in the UK as a Tier 4 (Student) or Tier 1 (Post Study Work) migrant to make an in-country application for an extension of stay as a Tier 1 (Entrepreneur)"

Every other positive said is irrelevant. It only means that going forward there will be RESTRICTION on application from those who apply via the PSW visa and if you submitted an application via PSW via route, then there would be a greater scrutiny to ensure that you are a genuine entrepreneur. The bar is high NOW.

PSW route is not closing, please read page 22 of this
https://www.gov.uk/government/uploads/s ... hc-532.pdf
page 22?

rizwan567
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Posts: 1098
Joined: Sat Mar 23, 2002 1:01 am
Location: Greater London

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by rizwan567 » Thu Jul 10, 2014 2:49 pm

Sorry, read page 5 and 6

------------------------------------------------------------------------------
Following changes are being made to PSW
--------------------------------------------------------------------------------

7. Policy Background
What is being done and why
Changes relating to Tier 1 (Entrepreneur)
7.1. The Tier 1 (Entrepreneur) category of the Points-Based System caters for
those with financial backing (of either £50,000 or £200,000, depending on their
circumstances) to set up, take over or otherwise be actively involved in the running of
a business in the UK.
7.2. Applicants who are in the UK in a study category (Tier 4 and the older study
categories it superseded) can currently apply to switch into Tier 1 (Entrepreneur) if
they have access to £50,000 funding to invest in business from:
• one or more registered venture capitalist firms regulated by the Financial

Conduct Authority (FCA),

• one or more UK Entrepreneurial seed funding competitions endorsed by UK
Trade & Investment, or
• one or more UK Government Departments, or Devolved Government

Departments in Scotland, Wales or Northern Ireland.

7.3. Applicants who are in the UK in the Tier 1 (Post-Study Work) category can
currently apply to switch into Tier 1 (Entrepreneur) if they:
• have access to £50,000 funding from:
o one or more registered venture capitalist firms regulated by the
Financial Conduct Authority (FCA),
o one or more UK Entrepreneurial seed funding competitions endorsed
by UK Trade & Investment, or
o one or more UK Government Departments, or Devolved Government
Departments in Scotland, Wales or Northern Ireland,
• have access to £50,000 funding from any source, and have already established
themselves in business and are working in a skilled occupation, or
• have access to £200,000 funding from any source.
7.4. The rules for the category were tightened in December 2012 and again in
January 2013 to attempt to counter abuse. However, UK Visas & Immigration
(UKVI) continues to receive very high volumes of applications, around two thirds of
which are refused on the basis that UKVI is not satisfied that the applicant genuinely
intends to establish a business. Further investigations have identified large numbers
of applications under this category to be associated with organised attempts to obtain
Page 4 of 9

leave to remain by fraud. In addition our investigations into those involved in abusing
the English language testing regime have identified a significant number of people
with invalid or questionable ETS certificates have either obtained, or sought to obtain
leave under the Tier 1 (Entrepreneur) route. UKVI checks on the tax status of those
who have previously been granted leave to remain under the route also indicate that a
significant number are in employment in breach of their conditions.
7.5. Given the scale of the attempted abuse it is necessary to suspend part of this
route whilst further investigations are carried out and a review is conducted into what
further steps are required to ensure that the operation of this category of stay delivers
its purpose.
7.6. We will keep the route open where we believe it is working effectively. These
changes amend the above switching provisions so that applicants who are in the UK
in a study category will only be able to apply to switch into Tier 1 (Entrepreneur) if
they have access to £50,000 funding to invest in business from:
• one or more UK Entrepreneurial seed funding competitions endorsed by UK
Trade & Investment, or
• one or more UK Government Departments, or Devolved Government

Departments in Scotland, Wales or Northern Ireland.

(The provision for venture capitalist funding is being removed.)
7.7. These changes also amend the above switching provisions so that applicants
who are in the UK in the Tier 1 (Post-Study Work) category can apply to switch into
Tier 1 (Entrepreneur) if they:
• have access to £50,000 funding from:
o one or more UK Entrepreneurial seed funding competitions endorsed
by UK Trade & Investment, or
o one or more UK Government Departments, or Devolved Government
Departments in Scotland, Wales or Northern Ireland, or
• have access to £50,000 funding from any source, and have already established
themselves in a genuine business (which is not de facto employment with
another employer) before the date these changes take effect (namely 11 July
2014), and are working in a skilled occupation. Evidential requirements to
show that applicants have established themselves in a genuine business are
being tightened.
(The provisions for venture capitalist funding and for those with funding not from a
specified source, who are not established in a genuine business before 11 July 2014,
are being removed.)
7.8. The changes being made are proportionate, given the evidence of high levels
of abuse of the existing arrangements by in-country applicants. There are no changes
Page 5 of 9


being made to the provisions for funding from endorsed seed funding competitions or
Government Departments, where there is currently no evidence of abuse. There are
also no changes being made to the funding provisions for applications from overseas.
7.9. The following minor changes are also being made to this category. These are
routine changes, but to avoid confusion by issuing multiple updates of forms and
guidance, they are being made at the same time as the changes above:
• Tier 1 (Entrepreneur) Migrants are restricted to working only for their own
business. A clarification is being made to confirm that this means they cannot
claim to be self-employed yet work in a de facto employment relationship with
another employer.
• Clarifications are being made to tables in Appendix A that registration as a
director must be with Companies House. The notes to the tables already made
this clear, but the amendments show this more clearly in the tables themselves.
• A clarification is being made to the requirement for an applicant to be a director
where the funding they are claiming points for is made available to their
business, rather than to the applicant by name.
• A minor update is being made to reflect the fact that bills for Class 2 National
Insurance contributions are no longer issued quarterly.
• A change is being made so that where an applicant is required to provide
evidence of a business bank account, they must be a signatory to that account.
This is a minor change which all genuine applicants should already satisfy. As
such, it is not considered necessary to give advance notice of this change.
• A minor change is being made to the definition of “partner” where an applicant
is relying on funds held in a joint bank account with their spouse, civil partner
or partner. This change brings the definition into line with that in the Rules for
family members (Appendix FM) where appropriate, and also confirms that the
definition only includes partners of Tier 1 Migrants within the meaning of Part 8
of the Rules.

entrepreneur123
Senior Member
Posts: 640
Joined: Wed Jan 09, 2013 11:12 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by entrepreneur123 » Thu Jul 10, 2014 2:55 pm

amend the Tier 1 (Entrepreneur) category of the Points-Based System. The
changes suspend the provision to switch into the category from study
categories and the Tier 1 (Post-Study Work) category, except in certain
circumstances.

Christianoronaldo
Junior Member
Posts: 98
Joined: Thu Apr 11, 2013 2:49 pm

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by Christianoronaldo » Thu Jul 10, 2014 3:32 pm

have access to £50,000 funding from any source, and have already established
themselves in a genuine business (which is not de facto employment with
another employer) before the date these changes take effect
(namely 11 July
2014), and are working in a skilled occupation. Evidential requirements to
show that applicants have established themselves in a genuine business are
being tightened.

I guess above para means that if you are on PSW then you can still switch to Tier 1 (Entrepreneur) provided you have an access to £50000 and and and and you have established your business (i.e. registered your company) before 11 July 2014.

However, if you are on PSW, have £50k but if you have not established your business before 11 July 2014 then you can't switch to Tier 1 Entrepreneur.

This is my understanding of above para.

kuzaaah
Junior Member
Posts: 68
Joined: Fri May 16, 2014 10:35 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by kuzaaah » Thu Jul 10, 2014 11:00 pm

Home Office act funnily sometimes.
The clause 'already established themselves in a genuine business' and the test to verify the authenticity of a business is being tighten' can be subjected to all kinds of subjective interpretations. I urge everyone who has established himself/herself in business good luck as they file their application. Home office prefer applications from overseas which comes with it, the £200,000 price- Simple!
To claim that registering a company with Companies House or being self employed is enough to prove that one has established himself/herself in business, then that would be self-delusion. Home Office know what they are doing and the freedom to reject applications on flimsy ground has been enhanced. There is nothing bad in trying if you stand on a solid ground. But the fact remains that every intention to start a business, every evidence put forward by applicants to substantiate their claims and application of establishing a business WILL BE TESTED USING SOME strict CRITERIA AND PARAMETERS. After rejection, the long journey of appeals will start. If appeals are disallowed, then it will be a journey of wasted time, effort and money.

askbelal
Newly Registered
Posts: 4
Joined: Sun Jul 13, 2014 2:25 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by askbelal » Sun Jul 13, 2014 2:31 am

Can any one tell me few of my question Please ?

1) where i need to keep my fund in my personal account or business account ?
2) What happen if i keep £25000 in business account and £25000 in my overseas bank account in my personal name ?
3) what changes comes after 10th july in small summary ?
4) what happend if my visa is rejected ?

askbelal
Newly Registered
Posts: 4
Joined: Sun Jul 13, 2014 2:25 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by askbelal » Sun Jul 13, 2014 2:34 am

Is there any mandatory to show Investment before you apply ?
what happen if i show only Fund in my account instead of any investment ?
how long i need to keep fund in my account ?

askbelal
Newly Registered
Posts: 4
Joined: Sun Jul 13, 2014 2:25 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by askbelal » Sun Jul 13, 2014 2:39 am

So Dear Rizwan567,

Brother i am going to apply next week so just want to know as per your article i need to show my fund in my business account .... not in my personal account ??? if is it right can you please pass me more information about it and any link if you have where this line said please.
rizwan567 wrote:Sorry, read page 5 and 6

------------------------------------------------------------------------------
Following changes are being made to PSW
--------------------------------------------------------------------------------

7. Policy Background
What is being done and why
Changes relating to Tier 1 (Entrepreneur)
7.1. The Tier 1 (Entrepreneur) category of the Points-Based System caters for
those with financial backing (of either £50,000 or £200,000, depending on their
circumstances) to set up, take over or otherwise be actively involved in the running of
a business in the UK.
7.2. Applicants who are in the UK in a study category (Tier 4 and the older study
categories it superseded) can currently apply to switch into Tier 1 (Entrepreneur) if
they have access to £50,000 funding to invest in business from:
• one or more registered venture capitalist firms regulated by the Financial

Conduct Authority (FCA),

• one or more UK Entrepreneurial seed funding competitions endorsed by UK
Trade & Investment, or
• one or more UK Government Departments, or Devolved Government

Departments in Scotland, Wales or Northern Ireland.

7.3. Applicants who are in the UK in the Tier 1 (Post-Study Work) category can
currently apply to switch into Tier 1 (Entrepreneur) if they:
• have access to £50,000 funding from:
o one or more registered venture capitalist firms regulated by the
Financial Conduct Authority (FCA),
o one or more UK Entrepreneurial seed funding competitions endorsed
by UK Trade & Investment, or
o one or more UK Government Departments, or Devolved Government
Departments in Scotland, Wales or Northern Ireland,
• have access to £50,000 funding from any source, and have already established
themselves in business and are working in a skilled occupation, or
• have access to £200,000 funding from any source.
7.4. The rules for the category were tightened in December 2012 and again in
January 2013 to attempt to counter abuse. However, UK Visas & Immigration
(UKVI) continues to receive very high volumes of applications, around two thirds of
which are refused on the basis that UKVI is not satisfied that the applicant genuinely
intends to establish a business. Further investigations have identified large numbers
of applications under this category to be associated with organised attempts to obtain
Page 4 of 9

leave to remain by fraud. In addition our investigations into those involved in abusing
the English language testing regime have identified a significant number of people
with invalid or questionable ETS certificates have either obtained, or sought to obtain
leave under the Tier 1 (Entrepreneur) route. UKVI checks on the tax status of those
who have previously been granted leave to remain under the route also indicate that a
significant number are in employment in breach of their conditions.
7.5. Given the scale of the attempted abuse it is necessary to suspend part of this
route whilst further investigations are carried out and a review is conducted into what
further steps are required to ensure that the operation of this category of stay delivers
its purpose.
7.6. We will keep the route open where we believe it is working effectively. These
changes amend the above switching provisions so that applicants who are in the UK
in a study category will only be able to apply to switch into Tier 1 (Entrepreneur) if
they have access to £50,000 funding to invest in business from:
• one or more UK Entrepreneurial seed funding competitions endorsed by UK
Trade & Investment, or
• one or more UK Government Departments, or Devolved Government

Departments in Scotland, Wales or Northern Ireland.

(The provision for venture capitalist funding is being removed.)
7.7. These changes also amend the above switching provisions so that applicants
who are in the UK in the Tier 1 (Post-Study Work) category can apply to switch into
Tier 1 (Entrepreneur) if they:
• have access to £50,000 funding from:
o one or more UK Entrepreneurial seed funding competitions endorsed
by UK Trade & Investment, or
o one or more UK Government Departments, or Devolved Government
Departments in Scotland, Wales or Northern Ireland, or
• have access to £50,000 funding from any source, and have already established
themselves in a genuine business (which is not de facto employment with
another employer) before the date these changes take effect (namely 11 July
2014), and are working in a skilled occupation. Evidential requirements to
show that applicants have established themselves in a genuine business are
being tightened.
(The provisions for venture capitalist funding and for those with funding not from a
specified source, who are not established in a genuine business before 11 July 2014,
are being removed.)
7.8. The changes being made are proportionate, given the evidence of high levels
of abuse of the existing arrangements by in-country applicants. There are no changes
Page 5 of 9


being made to the provisions for funding from endorsed seed funding competitions or
Government Departments, where there is currently no evidence of abuse. There are
also no changes being made to the funding provisions for applications from overseas.
7.9. The following minor changes are also being made to this category. These are
routine changes, but to avoid confusion by issuing multiple updates of forms and
guidance, they are being made at the same time as the changes above:
• Tier 1 (Entrepreneur) Migrants are restricted to working only for their own
business. A clarification is being made to confirm that this means they cannot
claim to be self-employed yet work in a de facto employment relationship with
another employer.
• Clarifications are being made to tables in Appendix A that registration as a
director must be with Companies House. The notes to the tables already made
this clear, but the amendments show this more clearly in the tables themselves.
• A clarification is being made to the requirement for an applicant to be a director
where the funding they are claiming points for is made available to their
business, rather than to the applicant by name.
• A minor update is being made to reflect the fact that bills for Class 2 National
Insurance contributions are no longer issued quarterly.
• A change is being made so that where an applicant is required to provide
evidence of a business bank account, they must be a signatory to that account.
This is a minor change which all genuine applicants should already satisfy. As
such, it is not considered necessary to give advance notice of this change.
• A minor change is being made to the definition of “partner” where an applicant
is relying on funds held in a joint bank account with their spouse, civil partner
or partner. This change brings the definition into line with that in the Rules for
family members (Appendix FM) where appropriate, and also confirms that the
definition only includes partners of Tier 1 Migrants within the meaning of Part 8
of the Rules.
#

ashrafm98
Newly Registered
Posts: 2
Joined: Tue Jul 15, 2014 11:04 am

Re: Tier 1 Entrepreneur PSW route closing from tomorrow

Post by ashrafm98 » Tue Jul 15, 2014 11:25 am

Christianoronaldo wrote:have access to £50,000 funding from any source, and have already established
themselves in a genuine business (which is not de facto employment with
another employer) before the date these changes take effect
(namely 11 July
2014), and are working in a skilled occupation. Evidential requirements to
show that applicants have established themselves in a genuine business are
being tightened.

I guess above para means that if you are on PSW then you can still switch to Tier 1 (Entrepreneur) provided you have an access to £50000 and and and and you have established your business (i.e. registered your company) before 11 July 2014.

However, if you are on PSW, have £50k but if you have not established your business before 11 July 2014 then you can't switch to Tier 1 Entrepreneur.

This is my understanding of above para.
Christianoronaldo:
if we have already reg the company before 11th july , still progressing in company establishment and have access for £50k , so can we apply for the visa . please help me on this
thanks

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