Expert advise: Parent - Subsidiary Issue

Hi guys,

I shall be really grateful if you can shed some light. I am really tensed as home office visit is due at my employer's.

Here goes the story:-

I am sponsored by company P (parent company). Company P has 5 subsidiaries ( A, B, C, D & E). P doesn't directly trade though business activities, rather A, B, C, D & E do. In return all subsidiaries pay monthly royalty/comission/charges (whatever you call) to company P. All subsidiaries have different set of businesses. In terms of HMRC all subsidiaries are fully owned by P.
However, P doesn't run its own payroll, instead my payslip comes from company A. So in my payslip it shows company A. And company A pays my NI & tax to HMRC. However, my wages is paid out from company P's bank account.
In sponsorship management system (SMS) company A hasn't been linked with company P, although during HMRC'S annual returns company A appears as wholly owned subsidiary of P.
Although company P has now made an application recently to Home office to include A & B in SMS as a location. And the decision on application is pending.
Please advice if the HO is to come for an inspection can this potentially lead to the license being revoked?

Please note that i actually work for P; P has sponsored me; P pays from its bank account. But A (which is not in sponsorship management system) pays by NI & TAX to hmrc.

I am really tensed.

vivekp10000 wrote:Hi guys,

I shall be really grateful if you can shed some light. I am really tensed as home office visit is due at my employer's.

Here goes the story:-

I am sponsored by company P (parent company). Company P has 5 subsidiaries ( A, B, C, D & E). P doesn't directly trade though business activities, rather A, B, C, D & E do. In return all subsidiaries pay monthly royalty/comission/charges (whatever you call) to company P. All subsidiaries have different set of businesses. In terms of HMRC all subsidiaries are fully owned by P.
However, P doesn't run its own payroll, instead my payslip comes from company A. So in my payslip it shows company A. And company A pays my NI & tax to HMRC. However, my wages is paid out from company P's bank account.
In sponsorship management system (SMS) company A hasn't been linked with company P, although during HMRC'S annual returns company A appears as wholly owned subsidiary of P.
Although company P has now made an application recently to Home office to include A & B in SMS as a location. And the decision on application is pending.
Please advice if the HO is to come for an inspection can this potentially lead to the license being revoked?

Please note that i actually work for P; P has sponsored me; P pays from its bank account. But A (which is not in sponsorship management system) pays by NI & TAX to hmrc.

I am really tensed.

My brain hurts.......

If you are being paid by another company other than the Sponsor there is a fair bit of explaining to do....
Given the attempts to resolve it have been set in motion and the circumstances you quote I am not seeing the likelihood of revocation.

It's chance of home office visit and they may ask for all the paper required for licence from A & B Technically u r not allow to work at A as P has not include A as a branch when applied for licence or not even mention the work location as A
All the best ......

Thank you very much guys I really do appreciate your input

nisarmalik wrote:It's chance of home office visit and they may ask for all the paper required for licence from A & B Technically u r not allow to work at A as P has not include A as a branch when applied for licence or not even mention the work location as A
All the best ......

No I m not in anyway working for company A. As I mentioned above my job location is at P (head office). Its for the tax purposes that the company found it cheaper to put us under the payroll of company A. One thing to note here is that my salaries comes out from P's bank statement.
Last time when HO visited our company in 2014, it went all okay and nothing was said about it. Since then 3 employees (including me) have used payslip (which shows company A) for visa application of tier 2 dependents.

Of course there is risk, I don't deny that. But I am not being able to calculate is this issue strong enough to result in the revocation of the license itself.

Apart from this, there is absolutely no other issues at my work place that I can possibly think of. Every one receives pay that COS states into their bank account, no any window dressings (if you know what i mean). Timesheet's are maintained, holidays are recorded, proper annual HR audits and right to work check etc.