T1E regulation : contracting with former sponsored company

Hi,

I'm currently under T2ICT(company inter transfer) for 5 years and about to reach its expiration.
As my daughter has been settled well, I'd like to provide stable life for her.

thus I'm planning to change current T2ICT to T1E ( 50K or 200K ).

I heard contracting with previous sponsored company is not legally allowed as it can be treated as HIDDEN contract
to extend existing relationship which prohibited by UKBA.

Is it above statement is TRUE?

I have a doubt someone's skill set and experience for having their own business is generally
comes from work experience and relationship based on the company(i.e LoB ).

If it is true, then starting NEW area without any experience is quite dangerous I think.

If anyone has the same experience or any single comment will be highly appreciated.

@ sys4cad, you stated as thus;

"I heard contracting with previous sponsored company is not legally allowed as it can be treated as HIDDEN contractto extend existing relationship which prohibited by UKBA.Is it above statement is TRUE?"

I dont think that the above statement is true because Tier1 entrepreneur visa doesnt state that you should only work for a particular client.
Its like saying that if you study at a school who happen to sponsor your tier4 student visa, then if you decide to work for the school, they cant sponsor you again as a tier2 sponsor.

As long as your contract with your former employer is legitimate, you should be fine to work as a contractor for them.