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Employee Requirements

Only for UK Tier 1 (Entrepreneur) points system

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Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Tue Feb 25, 2020 9:37 pm

The reason I ask is because of this paragraph under the extension section on page 26.
(i) If you have bought property as part of your business investment, the value of any residential
accommodation cannot be included. You must provide an estimate of the value of the residential
accommodation if it is part of the premises also used for your business. The valuation must be from
a surveyor who is a member of the Royal Institution of Chartered Surveyors dated within the three
months before the date of application

Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Tue Feb 25, 2020 9:57 pm

And also came across this page where the lawyer says that It will be classed as an investment.

Third party weblink removed.

Very confused:(

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marcnath
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Re: Tier 1 entrepreneur extension

Post by marcnath » Wed Feb 26, 2020 3:20 pm

Aaina wrote:
Tue Feb 25, 2020 9:37 pm
The reason I ask is because of this paragraph under the extension section on page 26.
(i) If you have bought property as part of your business investment, the value of any residential
accommodation cannot be included. You must provide an estimate of the value of the residential
accommodation if it is part of the premises also used for your business. The valuation must be from
a surveyor who is a member of the Royal Institution of Chartered Surveyors dated within the three
months before the date of application
There are two separate aspects here.

1) If you buy the business from an existing owner, then the entire investment cannot be counted towards the investment.
2) If you just buy/rent a building and set up a totally new B&B, then the investment can be counted with an exception if you are also staying at the B&B. In that case, the value of proportion of the property you use for your residence has to be excluded.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Wed Feb 26, 2020 6:45 pm

Thanks Marcnath,

The situation is we have already invested 150k with a partner, created two jobs and I need to invest the rest of 50k.

I was also thinking maybe I can open a business management consultancy via a limited company route as I have been in market research for a long time. I can invest money in that consultancy and help businesses/individuals by doing their research and plans . Do you think it will pass the genuine entrepreneur test.

Sorry, I know this is a tricky question but I just don't want to take any chance.

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marcnath
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Re: Tier 1 entrepreneur extension

Post by marcnath » Wed Feb 26, 2020 8:45 pm

Aaina wrote:
Wed Feb 26, 2020 6:45 pm
Thanks Marcnath,

The situation is we have already invested 150k with a partner, created two jobs and I need to invest the rest of 50k.

I was also thinking maybe I can open a business management consultancy via a limited company route as I have been in market research for a long time. I can invest money in that consultancy and help businesses/individuals by doing their research and plans . Do you think it will pass the genuine entrepreneur test.

Sorry, I know this is a tricky question but I just don't want to take any chance.
Can't see why not. Whether a business is genuine or not has nothing to do with the type of business.

Remember that if you are a Team, both people need to be involved equally in the businesses covering the entire 200K.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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CR001
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Re: Tier 1 entrepreneur extension

Post by CR001 » Wed Feb 26, 2020 8:50 pm

marcnath wrote:
Wed Feb 26, 2020 8:45 pm
Can't see why not. Whether a business is genuine or not has nothing to do with the type of business.

Remember that if you are a Team, both people need to be involved equally in the businesses covering the entire 200K.
I have merged the users topics so that you have the history. Query is for the father.
Char (CR001 not Casa)
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Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Wed Feb 26, 2020 9:36 pm

Thanks Marcnath. Yes you are right - it's for the father. I am hoping to be co owner of the new limited company and he and I can split up the responsibilities although I am already a resident here.

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Re: Tier 1 entrepreneur extension

Post by marcnath » Wed Feb 26, 2020 9:58 pm

Aaina wrote:
Wed Feb 26, 2020 9:36 pm
Thanks Marcnath. Yes you are right - it's for the father. I am hoping to be co owner of the new limited company and he and I can split up the responsibilities although I am already a resident here.
There is no restriction on you being a co owner. But if your Dad is going to be only a financial partner/investor and not actively involved/contributing to the business, then it is obvious that is not an "entrepreneurial" activity for him - it is an investment activity.

Lot of grey areas here.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Wed Feb 26, 2020 10:13 pm

Oh okay,
Thanks for the explanation... Also, if he invests rest of the 50k in a new business, then will he need to wait for a year after the new business is established so that he has the set of accounts? He is already midway in the third year - invested 150k and created two jobs - just the rest of the money that needs to be invested . Thanks

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Re: Tier 1 entrepreneur extension

Post by marcnath » Wed Feb 26, 2020 10:35 pm

Aaina wrote:
Wed Feb 26, 2020 10:13 pm
Oh okay,
Thanks for the explanation... Also, if he invests rest of the 50k in a new business, then will he need to wait for a year after the new business is established so that he has the set of accounts? He is already midway in the third year - invested 150k and created two jobs - just the rest of the money that needs to be invested . Thanks
No, that is not necessary. The accountant can prepare and certify a set of management accounts for any partial period.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Aaina
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Re: Tier 1 entrepreneur extension

Post by Aaina » Thu Feb 27, 2020 8:33 am

Thank you so much Marcnath.

You are a star!
Regards
Aaina

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Employees for Tier 1 Extension

Post by Aaina » Thu Jul 23, 2020 10:45 am

Hi,

My father is on Tier 1 Enterpreneur visa and will be finishing his three years in August. In an earlier query, someone said that he can apply for extension anytime after 3 years as long as he is meeting the requirements. He has employed 5 people during this time, although after March he had to furlough the employees due to being in hospitality sector which has the hardest hit.

Employee 1 was employed in January 2019 and Feb 2019 (2months)
Employee 2 was employed from May 2019 to Feb 2020 (10 months) after which he is still here but furloughed.
Employee 3 was employed from May 2019 to July 2019 (3 months) after which he went on sick pay and was on SSP.
Employee 4 was employed from June 2019 to August 2019 (3 months)
Employee 5 has been employed from Sep 2019 to Feb 2019 (6 months) after which have been furloughed

He also has a partner director who takes some sort of directors salary but that director is not on Tier 1 enterpreneur visa. Please note my father has not taken any form of remuneration from the company.

I have a few queries and will be grateful for someone to answer:
- If we combine all these jobs, it easily makes up the two twelve months blocks but can we do that when some of them have been in parallel? employee 1 and 2 can be combined makes 12 months - these are consecutive even though a gap inbetween. Employee 3, 4 and 5 can be combined and makes twelve months but some periods are overlapping.

- Secondly, the other director taking a salary - can her job be shown too as a job creation? also the salary she is taking - would that investment be deducted by the home office when seeing the investment criteria even though she is a British citizen and not a tier 1 entrepreneur applicant. She is just a partner my dad started the business with.

Many thanks
Aaina

Aaina
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Re: Employees for Tier 1 Extension

Post by Aaina » Tue Jul 28, 2020 8:07 am

Hi, Please can someone help me with my query.

Many Thanks
Regards
Aaina
Aaina wrote:
Thu Jul 23, 2020 10:45 am
Hi,

My father is on Tier 1 Enterpreneur visa and will be finishing his three years in August. In an earlier query, someone said that he can apply for extension anytime after 3 years as long as he is meeting the requirements. He has employed 5 people during this time, although after March he had to furlough the employees due to being in hospitality sector which has the hardest hit.

Employee 1 was employed in January 2019 and Feb 2019 (2months)
Employee 2 was employed from May 2019 to Feb 2020 (10 months) after which he is still here but furloughed.
Employee 3 was employed from May 2019 to July 2019 (3 months) after which he went on sick pay and was on SSP.
Employee 4 was employed from June 2019 to August 2019 (3 months)
Employee 5 has been employed from Sep 2019 to Feb 2019 (6 months) after which have been furloughed

He also has a partner director who takes some sort of directors salary but that director is not on Tier 1 enterpreneur visa. Please note my father has not taken any form of remuneration from the company.

I have a few queries and will be grateful for someone to answer:
- If we combine all these jobs, it easily makes up the two twelve months blocks but can we do that when some of them have been in parallel? employee 1 and 2 can be combined makes 12 months - these are consecutive even though a gap inbetween. Employee 3, 4 and 5 can be combined and makes twelve months but some periods are overlapping.

- Secondly, the other director taking a salary - can her job be shown too as a job creation? also the salary she is taking - would that investment be deducted by the home office when seeing the investment criteria even though she is a British citizen and not a tier 1 entrepreneur applicant. She is just a partner my dad started the business with.

Many thanks
Aaina

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marcnath
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Re: Tier 1 entrepreneur extension

Post by marcnath » Tue Jul 28, 2020 9:04 am

Aaina wrote:
Tue Feb 25, 2020 9:33 pm
Thanks marcnath,

I was under the impression that the value of a commercial property is classed as an investment if that premise will be used for business. Thanks
Your impression is correct. If you buy a property and use it for Bed and Breakfast, that will be considered an investment. However, if you bought an existing Bed and Breakfast business which included the property, then it would not be.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Aaina
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Joined: Tue Aug 01, 2017 9:06 pm

Re: Employees for Tier 1 Extension

Post by Aaina » Tue Jul 28, 2020 10:36 am

Apologies Marcnath,

I had raised a new query a few days ago and it got attached to my previous queries. So I have asked abut the employees..

I will copy it here..

My father is on Tier 1 Enterpreneur visa and will be finishing his three years in August. In an earlier query, someone said that he can apply for extension anytime after 3 years as long as he is meeting the requirements. He has employed 5 people during this time, although after March he had to furlough the employees due to being in hospitality sector which has the hardest hit.

Employee 1 was employed in January 2019 and Feb 2019 (2months)
Employee 2 was employed from May 2019 to Feb 2020 (10 months) after which he is still here but furloughed.
Employee 3 was employed from May 2019 to July 2019 (3 months) after which he went on sick pay and was on SSP.
Employee 4 was employed from June 2019 to August 2019 (3 months)
Employee 5 has been employed from Sep 2019 to Feb 2019 (6 months) after which have been furloughed

He also has a partner director who takes some sort of directors salary but that director is not on Tier 1 enterpreneur visa. Please note my father has not taken any form of remuneration from the company.

I have a few queries and will be grateful for someone to answer:
- If we combine all these jobs, it easily makes up the two twelve months blocks but can we do that when some of them have been in parallel? employee 1 and 2 can be combined makes 12 months - these are consecutive even though a gap inbetween. Employee 3, 4 and 5 can be combined and makes twelve months but some periods are overlapping.

- Secondly, the other director taking a salary - can her job be shown too as a job creation? also the salary she is taking - would that investment be deducted by the home office when seeing the investment criteria even though she is a British citizen and not a tier 1 entrepreneur applicant. She is just a partner my dad started the business with.

Many thanks
Aaina

Aaina
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Posts: 48
Joined: Tue Aug 01, 2017 9:06 pm

Employee Requirements

Post by Aaina » Thu Jul 30, 2020 10:18 am

Hi,

** Reposting this** as the previous post got attached to my other post.

My father is on Tier 1 Enterpreneur visa and will be finishing his three years in August. In an earlier query, someone said that he can apply for extension anytime after 3 years as long as he is meeting the requirements. He has employed 5 people during this time, although after March he had to furlough the employees due to being in hospitality sector which has the hardest hit.

Employee 1 was employed in January 2019 and Feb 2019 (2months)
Employee 2 was employed from May 2019 to Feb 2020 (10 months) after which he is still here but furloughed.
Employee 3 was employed from May 2019 to July 2019 (3 months) after which he went on sick pay and was on SSP.
Employee 4 was employed from June 2019 to August 2019 (3 months)
Employee 5 has been employed from Sep 2019 to Feb 2019 (6 months) after which have been furloughed

He also has a partner director who takes some sort of directors salary but that director is not on Tier 1 enterpreneur visa. Please note my father has not taken any form of remuneration from the company.

I have a few queries and will be grateful for someone to answer:
- If we combine all these jobs, it easily makes up the two twelve months blocks but can we do that when some of them have been in parallel? employee 1 and 2 can be combined makes 12 months - these are consecutive even though a gap inbetween. Employee 3, 4 and 5 can be combined and makes twelve months but some periods are overlapping.

- Secondly, the other director taking a salary - can her job be shown too as a job creation? also the salary she is taking - would that investment be deducted by the home office when seeing the investment criteria even though she is a British citizen and not a tier 1 entrepreneur applicant. She is just a partner my dad started the business with.

Many thanks
Aaina

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CR001
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Re: Employee Requirements

Post by CR001 » Thu Jul 30, 2020 10:25 am

Topics Merged. The forum rule has not changed regarding keeping all questions in one topic.

Zimba responded to a similar query earlier today.

https://www.immigrationboards.com/uk-ti ... 04047.html
Zimba wrote:
Thu Jul 30, 2020 12:52 am
Yes. Under the COVID relaxation of the Tier 1E rules, you do not need to strictly create two separate positions for 12 months
If you’re on a Tier 1 Entrepreneur visa and your business has been disrupted
You no longer need to employ at least 2 people for 12 consecutive months. The 12 month period you’re required to employ someone for can be made up of multiple jobs across different months.

Time when your employees were furloughed will not count towards the 12 month period.

If you’ve not been able to employ staff for 12 months by the time your visa expires, you’ll be allowed to temporarily extend your stay to give you time to meet the requirement.

These arrangements will continue for applications made after 31 May 2020, where the jobs you’re relying on were disrupted due to coronavirus.
https://www.gov.uk/guidance/coronavirus ... -residents
Char (CR001 not Casa)
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Please DO NOT send me a PM for immigration advice. I reserve the right to ignore the PM and not respond.

Aaina
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Re: Employee Requirements

Post by Aaina » Thu Jul 30, 2020 11:07 am

Thank you for your reply.

Just that - the link on the reply says -
"If you’re in the UK and your leave expired between 24 January 2020 and 31 July 2020"

This wont be true for my dad right as he is going to apply somewhere in Sep/Oct time or will it still apply? He has a 3.5 year visa till Jan next year, however we were hoping to apply right after he completes 3 years which will be somewhere in Aug/Sep
Or am I just reading the govt link incorrectly..

Thanks:-)
Aaina

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Re: Employee Requirements

Post by Zimba » Thu Jul 30, 2020 12:50 pm

You are reading it incorrectly. Each part must be read separately
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

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Re: Employee Requirements

Post by marcnath » Thu Jul 30, 2020 1:32 pm

Aaina wrote:
Thu Jul 30, 2020 11:07 am
Thank you for your reply.

Just that - the link on the reply says -
"If you’re in the UK and your leave expired between 24 January 2020 and 31 July 2020"

This wont be true for my dad right as he is going to apply somewhere in Sep/Oct time or will it still apply? He has a 3.5 year visa till Jan next year, however we were hoping to apply right after he completes 3 years which will be somewhere in Aug/Sep
Or am I just reading the govt link incorrectly..

Thanks:-)
Aaina
The section on the Tier visa has a clear statement "These arrangements will continue for applications made after 31 May 2020..." which overrides the original heading of expiry before 31 July 2020.

However, what you need to pay more attention to is "....where the jobs you’re relying on were disrupted due to coronavirus."

In your Dad's case, I can't see how that would apply since the majority of jobs were not existing at the time of the coronavirus impact. The staff furloughed would not have an effect on the requirement of two jobs (because of the overlap in June/July 2019 the second job only has 10 months FT equivalent)

So, while it is highly probable HO will allow this - for example, in case there were plans to hire someone else for Job 2 and that got disrupted - HO does seem have grounds to refuse the accept the job creation if they want to.

The safest would be hire someone for Job 2 for a couple of months. Next would be to state the fact that there were plans to hire someone to Job 2 and explain the disruption in the cover letter (assuming that was the fact) and lastly to just apply and assume that HO will treat all applications with the more relaxed conditions.

On the Director who is a British citizen and taking a salary, that would be a legitimate job creation. If she was employed throughout, that should satisfy the 2nd job.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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