T1E Free Lancer Works

Dear All,
I am on T1E since July 2019, my business is trading in stationery. As I'm a structural engineer, I get free lancer works for fixed fee such as Engineering Consultancy. As I am on Tier 1 Entrepreneur Visa, I only allowed to work for my own business. I am asking regarding the best scheme to get paid legally for these works either registering a limited company (preferred) or being self employed.
And if I have an outstanding payment that I should be paid, would it be fine to get paid directly to my personal bank account? or should I wait until I establish either Limited Company or being self employed.

mohamedlasheen wrote: ↑

Tue May 12, 2020 4:44 pm

Dear All,
I am on T1E since July 2019, my business is trading in stationery. As I'm a structural engineer, I get free lancer works for fixed fee such as Engineering Consultancy. As I am on Tier 1 Entrepreneur Visa, I only allowed to work for my own business. I am asking regarding the best scheme to get paid legally for these works either registering a limited company (preferred) or being self employed.
And if I have an outstanding payment that I should be paid, would it be fine to get paid directly to my personal bank account? or should I wait until I establish either Limited Company or being self employed.

Tier 1E rules do not allow you to provide a contract of service (like freelancing) even if you work via your own company.

uk-tier-1-entrepreneur-visas/contract-w ... l#p1445105

Thanks zimba, the work I did is not a contract work, it is a single job which I have evaluated my fees for it, i delivered the final product and finished.
We have agreed the fee and time frame before starting. Would that make a difference?

mohamedlasheen wrote: ↑

Tue May 12, 2020 11:32 pm

Thanks zimba, the work I did is not a contract work, it is a single job which I have evaluated my fees for it, i delivered the final product and finished.
We have agreed the fee and time frame before starting. Would that make a difference?

If you personally provide a service, it is a contract of service even if there is no contract. I suggest you to go and read the official Tier 1E guide. I also gave you the list that you need to evaluate your type of work. Tier 1E visa is not intended for contracting or freelancing work

From Tier 1E guide:

You may not, however, be considered to be working for your own business if the work you
undertake amounts to no more than employment by another business (for example, where
your work amounts to no more than the filling of a position or vacancy with, or the hire of your
labour to, that business, including where it is undertaken through engagement with a recruitment
or employment agency). In this capacity, you would have a contract of service. This applies even if
it is claimed that such work is undertaken on a self-employed basis.

https://assets.publishing.service.gov.u ... V_1019.pdf

Dear Zimba,
Thanks for the response, In order to make that legal, I believe that In case that either me; as an individual; or my limited company is requested to quote to perform a professional job or task to other company, then I provide a quote that includes the proposed fee and time frame or delivery date that I am expecting to finish the task, then the client/company accepts, then we agreed a form of contract that states the following:
1. I/we (the business) are responsible for the performing the using our resources until delivering it to standards.
2. I/we (the business) are responsible for fixing any unsatisfactory work in our own time without asking for extra fees.
3. The agreed fee for the job is specified as fixed fee to the work - it doesn’t depend on how long the job takes to finish;
4. I/we (the business) are responsible to provide assets, cover running costs, and provide tools and equipment for our work; including computers, software, printers, telephone calls, stationery, etc.
5. There is no restriction for me or the business to work for more than one client at the same time.
6. I/we (the business) are responsible to provide the work to the suitable standards after applying our internal QA/QC procedures, the client company do not provide any supervision to the work.
7. I/we (the business) are providing invoices to get paid for the work that is done.
8. I/we (the business) are responsible for paying our own National Insurance and tax;
9. I/we (the business) are not getting holiday or sick pay from the client company where there are no works;
10. I/we (the business) are operating under a contract for services or consultancy agreement that uses terms like ‘self-employed’, ‘consultant’ or an ‘independent contractor’.
If the contract contains the above conditions, then that would not be in breach of the conditions of stay of T1E, please correct me if I am wrong.

Having a good contract is key but the risk still remains. As I said, if your work amounts to nothing but what an employee would do, then your work is contract of service regardless of the terms of a contract. UKVI can question the type of work you do and determine if that was a contract of service or not.

thanks for that.
If I will do that work as a side business, i.e. I will use the main business only to apply for extension/ILR, will that make a difference? i,e, will they ask me about details of the side business?

mohamedlasheen wrote: ↑

Tue May 19, 2020 3:07 pm

thanks for that.
If I will do that work as a side business, i.e. I will use the main business only to apply for extension/ILR, will that make a difference? i,e, will they ask me about details of the side business?

It does not matter whether it is a side business or not. You cannot work against the conditions of your stay