Can tier1 entrepreneur visa holder work as a Contractor?

[KeepItCool]

Hi,
I have Tier1 Entrepreneur visa - along with my business work which is into providing IT services, can I work as a contractor(self employee) in other IT companies?

Thanks in advance!!!

[marcnath]

Hi,
I have Tier1 Entrepreneur visa - along with my business work which is into providing IT services, can I work as a contractor(self employee) in other IT companies?

Thanks in advance!!!

No

[KeepItCool]

Thank you for your reply.
How about if my company is providing service to company X, can I work as a contractor as a service provider to company X?

[marcnath]

Thank you for your reply.
How about if my company is providing service to company X, can I work as a contractor as a service provider to company X?

No

[misterll]

I believe you can. It was part of my business plan and the government approved it. Marcnath why do you say no?

[zimba]

I believe you can. It was part of my business plan and the government approved it. Marcnath why do you say no?

You cannot work as a contractor. Contractors mostly work in capacity of employees and that is not allowed under Tier 1E rules.
Your company can have a contract for services with other companies however you personally cannot provide contract of service. UKVI will check your contract to see if you worked in capacity of an employee as per HMRC definitions. 99% of IT contract work is contract of service

[Frontier Mole]

If the “service” provided is labour only then that is contracting and is not an allowable activity under Tier 1 Ent.
The vast majority of contracting in the IT sector is for the supply of labour only. The issue is also an ongoing problem for Tier 2 migrants / sponsors.

[misterll]

Frontier Mole, contracting only vs what? If you come into a company as a contractor, work three weeks (for example) offering your services, you are a contractor, but that is allowed. You're just not allowed to act as if you were a full time employee. But to go into companies, offer your services as a contractor for various lengths of time (weeks, months), is allowed.

[zimba]

Not necessarily. Your employment status is defined by the terms of your contract work not based on what you think. The clue is that if you are personally responsible then you are working in capacity of an employee

uk-tier-1-entrepreneur-visas/contract-w ... l#p1445105
See what is the definition of an employee: https://www.gov.uk/employment-status/employee

[marcnath]

Frontier Mole, contracting only vs what? If you come into a company as a contractor, work three weeks (for example) offering your services, you are a contractor, but that is allowed. You're just not allowed to act as if you were a full time employee. But to go into companies, offer your services as a contractor for various lengths of time (weeks, months), is allowed.

The guidance has some good ways of checking (check the Appendix)

In considering whether your work amounts to genuine self-employment (and is therefore work for the business which you have established, joined or taken over) or is in fact employment by another business, we will take into consideration your status in tax law and employment law, as well as whether:
• you are in business for yourself, are responsible for the success or failure of your business and can make a loss or a profit;
• you can decide what work you do and when, where or how to do it;
• you can hire someone else to do the work;
• you are responsible for fixing any unsatisfactory work in your own time;
• your client agrees a fixed price for your work - it doesn’t depend on how long the job takes to finish;
• you use your own money to buy business assets, cover running costs, and provide tools and equipment for your work;
• you can work for more than one client;
• you put in bids or give quotes to get work;
• you are under direct supervision when working;NO
• you submit invoices for the work you have done;
• you are responsible for paying your own National Insurance and tax;
• you get holiday or sick pay when you are not workingNO; and whether
• you operate under a contract for services or consultancy agreement that uses terms like ‘self-employed’, ‘consultant’ or an ‘independent contractor’NO

You should be able to answer Yes to all of the above other than those I separately highlighted.

This is still not an exhaustive list - just a guide.

In most "contract" jobs, you will possibly answer NO to quite a few questions.

[misterll]

MarcNath - wouldn't the answer to the last one be 'yes?' Also, does the government actually go and check all your contracts? I find that hard to believe, I don't even think you are required to submit them anyway, right? (I still believe all my contracts are valid, just making a point)

[marcnath]

MarcNath - wouldn't the answer to the last one be 'yes?' Also, does the government actually go and check all your contracts? I find that hard to believe, I don't even think you are required to submit them anyway, right? (I still believe all my contracts are valid, just making a point)

If you answer Yes to the last question, you are more likely to be in violation of the conditions of your T1E visa. But none of these should be treated on its own. If it is Yes for all the others and just this one is No, it may be just a terminology issue and not critical.

To be clear, the T1E visa is meant for someone to run a business, not be a alternate means of being an employee.

I believe it is quite straightforward to determine whether you are running a business or a contractor - I am sure you know the answer.

You are not required to submit contracts with your application. But if you are asked for it, you are definitely required to submit them.

From what we have seen, HO is quite strict about this. So, if there is room for misinterpretation, expect scrutiny of your application and be prepared to justify it.

[Frontier Mole]

Even without the contracts it is easy to spot. The bank receipts will be from IT solutions / agency companies or other such third party labour suppliers.

It will be a refusal straight away if you do contracting of labour only services.