Is employment allowed in 2nd business at non graduate level?

[educators]

I would really appreciate everyone advice on it.

If someone who has got Tier 1 Ent visa through 50K route and he is maintaining his 1st business which is at graduate level according to the UKBA rules.

Along with his 1st business if he starts a 2nd business which is not at graduate level, can he be employed in that business and receive salary via PAYE or not?

According to UKBA condition given below I assume you can be employed in businesses you have established but please give your opinions as the job role in 2nd business will not be at graduate level. How much this can affect? Your replies will be highly appreciated. Many Thanks in advance

On Page 5 of policy guidance: no employment other than working for the business or businesses that you have established, joined or taken over;

[Darvesh]

I would really appreciate everyone advice on it.

If someone who has got Tier 1 Ent visa through 50K route and he is maintaining his 1st business which is at graduate level according to the UKBA rules.

Along with his 1st business if he starts a 2nd business which is not at graduate level, can he be employed in that business and receive salary via PAYE or not?

According to UKBA condition given below I assume you can be employed in businesses you have established but please give your opinions as the job role in 2nd business will not be at graduate level. How much this can affect? Your replies will be highly appreciated. Many Thanks in advance

On Page 5 of policy guidance: no employment other than working for the business or businesses that you have established, joined or taken over;

YOU CANT NOT BE EMPLOYED BY ANY OF YOUR OWN BUSINESS WHICH IS UNDER NVQF LEVEL 4 HENCE NO PAYMENT THROUGH PAYE.

DONT CONFUSE YOURSELF BETWEEN ADMINISTERING A BUSINESS AND EMPLOYED BY A BUSINESS...

[educators]

I would really appreciate everyone advice on it.

If someone who has got Tier 1 Ent visa through 50K route and he is maintaining his 1st business which is at graduate level according to the UKBA rules.

Along with his 1st business if he starts a 2nd business which is not at graduate level, can he be employed in that business and receive salary via PAYE or not?

According to UKBA condition given below I assume you can be employed in businesses you have established but please give your opinions as the job role in 2nd business will not be at graduate level. How much this can affect? Your replies will be highly appreciated. Many Thanks in advance

On Page 5 of policy guidance: no employment other than working for the business or businesses that you have established, joined or taken over;

YOU CANT NOT BE EMPLOYED BY ANY OF YOUR OWN BUSINESS WHICH IS UNDER NVQF LEVEL 4 HENCE NO PAYMENT THROUGH PAYE.

DONT CONFUSE YOURSELF BETWEEN ADMINISTERING A BUSINESS AND EMPLOYED BY A BUSINESS...

On what basis you are saying this. Could you please refer your statement to policy guidance.

[Darvesh]

@educators

i aint saying anything rather wrote what i have understood based on policy guideline.
please read and summarize the policy guideline.

[rehan01]

Agreed with Darvesh reply.

regards

[educators]

Agreed with Darvesh reply.

regards

Rehan let me give you an example and then tell me what do you think if am I right or wrong. First of all we need to know that can we do a business at non graduate level or not and we know that we cannot do this but if one maintains his main graduate level business then his other business can be at lower level. Policy guidance says your main business activity needs to be at graduate level therefore if you maintain your main business according to UKBA rules then 2nd business can be at lower level.

Now 2nd question is can you be employed in that 2nd business or not. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as UKBA clearly says that you can do employment only in your business or businesses that you have established.

Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

Your reply will be highly appreciated. If you disagree with me then please clarify my confusion by refering your statement to the policy guidance. Many Thanks

[my_friend]

Agreed with Darvesh reply.

regards

Rehan let me give you an example and then tell me what do you think if am I right or wrong. First of all we need to know that can we do a business at non graduate level or not and we know that we cannot do this but if one maintains his main graduate level business then his other business can be at lower level. Policy guidance says your main business activity needs to be at graduate level therefore if you maintain your main business according to UKBA rules then 2nd business can be at lower level.

Now 2nd question is can you be employed in that 2nd business or not. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as UKBA clearly says that you can do employment only in your business or businesses that you have established.

Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

Your reply will be highly appreciated. If you disagree with me then please clarify my confusion by refering your statement to the policy guidance. Many Thanks

i am not sure about business under NVQ level 4....but definitely you can be an employee of your own company and take salary as PAYEE on your NVQ 4 business....

[Darvesh]

but definitely you can be an employee of your own company and take salary as PAYEE on your NVQ 4 business...

however money taken on your own PAYE will not be counted towards company expense(investment) though a staff salary will be counted towards company expense(investment) but a dividend taken out by you will be counted towards company expense and hence an investment.

for more information plz read policy guidelines

[educators]

but definitely you can be an employee of your own company and take salary as PAYEE on your NVQ 4 business...

however money taken on your own PAYE will not be counted towards company expense(investment) though a staff salary will be counted towards company expense(investment) but a dividend taken out by you will be counted towards company expense and hence an investment.

for more information plz read policy guidelines

Paying salary and not being counted as investment in 2nd business at lower level is not an issue as this will not be used for extension purpose. Original main business at graduate level is being maintained.

My question is more related towards whether what is allowed as per UKBA rules and regulations. At any stage if they check are we doing the right thing or not. That is my issue. Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

[Darvesh]

what i wrote in my last message was related to main business(nvqf level 4) not second business.

[educators]

what i wrote in my last message was related to main business(nvqf level 4) not second business.

Fair enough but I am looking for answer of being employed in my own 2nd business. Please check my example in previous post above and then tell what do you think about it?

Thanks for your replies.

[jamiee]

I've got a similar question...

Received my visa yesterday after waiting for almost 8 months!
Since submitting the application, I came up with a new business idea while still running the business that I applied the visa with. Could someone tell me if it's possible to run both businesses under tier 1 entrepreneur visa, both as the Company Director? How about working as a self-employed freelancer?

Thank you!!

[rahulsingh1]

Hi Darvesh, I did not know that Dividend can be an investment ?

it is definitely sort of an expense (Although not in technical terms). But Dividend as investment ? I am not so sure.

But if this is true then it will help a lot of people.

Can you please explain what is your source of information and where it is present in the guidance or part 6a ? Or is it just accounting rules ?

but definitely you can be an employee of your own company and take salary as PAYEE on your NVQ 4 business...

however money taken on your own PAYE will not be counted towards company expense(investment) though a staff salary will be counted towards company expense(investment) but a dividend taken out by you will be counted towards company expense and hence an investment.

for more information plz read policy guidelines

[educators]

I've got a similar question...

Received my visa yesterday after waiting for almost 8 months!
Since submitting the application, I came up with a new business idea while still running the business that I applied the visa with. Could someone tell me if it's possible to run both businesses under tier 1 entrepreneur visa, both as the Company Director? How about working as a self-employed freelancer?

Thank you!!

Let me tell you one thing that you do not need any immigration status in order to be a director or shareholder of any UK company. Therefore you may setup more than one business but the only issue is if your second business is at non graduate level then can you be employed in it or not that is still questionable as UKBA has not clarified this. But definitely you can withdraw profit of that 2nd business.

[googleit]

Educators u dont need to invest in graduate level business once u get visa u and 200k come under same catageory for extension. They have to show 200k investment while u need to show 50k.
If u read policy guidance it says very clearly that NVQ level is for Initial applicants

Moreover one of my friend sent an email to UKBa and they replied that u have no restrictions in any business to invest only u cannot invest in preperty business

And sorry to say Mr Darveish is just passing his opinions not giving any reference

[educators]

Educators u dont need to invest in graduate level business once u get visa u and 200k come under same catageory for extension. They have to show 200k investment while u need to show 50k.
If u read policy guidance it says very clearly that NVQ level is for Initial applicants

Moreover one of my friend sent an email to UKBa and they replied that u have no restrictions in any business to invest only u cannot invest in preperty business

And sorry to say Mr Darveish is just passing his opinions not giving any reference

I am quite sure now that an entrepreneur can start his 2nd business which does not need to be at level 4 however my initial question of this thread was probably not asked in a right way. Rather than employment I should have asked about salary for being director in 2nd lower level business and I feel that if one is maintaining his main business at level 4 and along with it if you start 2nd business at lower level you can be director of that business and take director's salary for managing that business. However you cannot be employed and take a specific position in that 2nd business. I will appreciate if Guru's or other experts provide their opinion on it. Many Thanks

[munkuet]

hi
I got tier 1 doing my business where my activity above level 4 soc but now I want to start another business which is different sector than my current business but my role will be still above level 4 as a marketing or business development manager for new company.

my question is am I allowed to do that as I am doing a new business but my role will not be less then level 4 .

your opinion guys
thanks

[Olasunkanmi]

hi
I got tier 1 doing my business where my activity above level 4 soc but now I want to start another business which is different sector than my current business but my role will be still above level 4 as a marketing or business development manager for new company.

my question is am I allowed to do that as I am doing a new business but my role will not be less then level 4 .

your opinion guys
thanks

@ munket, UKBA said that they understand that entrepreneur are people of ideas who may decide to change their business model at anytime but such changes must not be below NQF level 4 and you should also keep record of all your investment in as many business as you might undertake before renewal is due.

All your total investment in all the businesses at NQF level 4 must total 50k within the first 3years.

[Dasistfact]

hi
I got tier 1 doing my business where my activity above level 4 soc but now I want to start another business which is different sector than my current business but my role will be still above level 4 as a marketing or business development manager for new company.

my question is am I allowed to do that as I am doing a new business but my role will not be less then level 4 .

your opinion guys
thanks

@ munket, UKBA said that they understand that entrepreneur are people of ideas who may decide to change their business model at anytime but such changes must not be below NQF level 4 and you should also keep record of all your investment in as many business as you might undertake before renewal is due.

All your total investment in all the businesses at NQF level 4 must total 50k within the first 3years.

Hi could you please give a link, where UKBA that. Or where did they say it? Because I can't find one.

[Olasunkanmi]

hi
I got tier 1 doing my business where my activity above level 4 soc but now I want to start another business which is different sector than my current business but my role will be still above level 4 as a marketing or business development manager for new company.

my question is am I allowed to do that as I am doing a new business but my role will not be less then level 4 .

your opinion guys
thanks

@ munket, UKBA said that they understand that entrepreneur are people of ideas who may decide to change their business model at anytime but such changes must not be below NQF level 4 and you should also keep record of all your investment in as many business as you might undertake before renewal is due.

All your total investment in all the businesses at NQF level 4 must total 50k within the first 3years.

Hi could you please give a link, where UKBA that. Or where did they say it? Because I can't find one.

@ Dasistfact, check point 55 on page 12 of the policy guidance as stated below;

''55. We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested.''

[Mr Legal]

Agreed with Darvesh reply.

regards

Rehan let me give you an example and then tell me what do you think if am I right or wrong. First of all we need to know that can we do a business at non graduate level or not and we know that we cannot do this but if one maintains his main graduate level business then his other business can be at lower level. Policy guidance says your main business activity needs to be at graduate level therefore if you maintain your main business according to UKBA rules then 2nd business can be at lower level.

Now 2nd question is can you be employed in that 2nd business or not. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as UKBA clearly says that you can do employment only in your business or businesses that you have established.

Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

Your reply will be highly appreciated. If you disagree with me then please clarify my confusion by refering your statement to the policy guidance. Many Thanks

Don't create problem for your future application nor confuse applicants in the forum. I understand your concern and you can do more than one job but cash in hand and at the time of extension, you have to demonstrate that you have invested your funds in a occupation of graduate level-not below.Please don't interpret the policy either wrongly or for yourself.And by the way where has it been mentioned that other than your main business activities can be below level 4.Thanks for your understanding in advance.

[Olasunkanmi]

Agreed with Darvesh reply.

regards

Rehan let me give you an example and then tell me what do you think if am I right or wrong. First of all we need to know that can we do a business at non graduate level or not and we know that we cannot do this but if one maintains his main graduate level business then his other business can be at lower level. Policy guidance says your main business activity needs to be at graduate level therefore if you maintain your main business according to UKBA rules then 2nd business can be at lower level.

Now 2nd question is can you be employed in that 2nd business or not. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as UKBA clearly says that you can do employment only in your business or businesses that you have established.

Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

Your reply will be highly appreciated. If you disagree with me then please clarify my confusion by refering your statement to the policy guidance. Many Thanks

Don't create problem for your future application nor confuse applicants in the forum. I understand your concern and you can do more than one job but cash in hand and at the time of extension, you have to demonstrate that you have invested your funds in a occupation of graduate level-not below.Please don't interpret the policy either wrongly or for yourself.And by the way where has it been mentioned that other than your main business activities can be below level 4.Thanks for your understanding in advance.

I believe that this forum is meant to share ideas and not to give professional advice so any forum member who go blindly with ideas or suggestion on this forum without concrete facts from policy guidance and immigration rules are doing so at their own risk.

I think that one can do any other type of business below NQF level 4 as long as the core service of the business is at NQF level 4 and have the required 50k invested in it. But it might be somehow very difficult to differentiate between running cost in the business for Level 4 service and other services below level 4 but it is still possible if one can keep good records.

Don't forget that Home Office do not require any information from other services below NQF level 4 during renewal, they only want proof that you have invested 50k in the section of the business that offers NQF level 4 services and also proof that you have created the equivalent of 2 full time jobs for a year each.

[educators]

Agreed with Darvesh reply.

regards

Rehan let me give you an example and then tell me what do you think if am I right or wrong. First of all we need to know that can we do a business at non graduate level or not and we know that we cannot do this but if one maintains his main graduate level business then his other business can be at lower level. Policy guidance says your main business activity needs to be at graduate level therefore if you maintain your main business according to UKBA rules then 2nd business can be at lower level.

Now 2nd question is can you be employed in that 2nd business or not. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as UKBA clearly says that you can do employment only in your business or businesses that you have established.

Please see below both business and now tell me what do you think of my point of view.

1st Main Business: Software Development Job Role: Software Developer Money: Via PAYE Salary + Dividend

2nd Business: Food Franchise Job Role: Director Money: Via PAYE Salary + Dividend

Your reply will be highly appreciated. If you disagree with me then please clarify my confusion by refering your statement to the policy guidance. Many Thanks

Don't create problem for your future application nor confuse applicants in the forum. I understand your concern and you can do more than one job but cash in hand and at the time of extension, you have to demonstrate that you have invested your funds in a occupation of graduate level-not below.Please don't interpret the policy either wrongly or for yourself.And by the way where has it been mentioned that other than your main business activities can be below level 4.Thanks for your understanding in advance.

I have no intention to create confusion among applicants. My personal thinking is that if one maintains 50K or invest these 50k in his main graduate level business which he applied for then along with this business he can legally setup and work for other businesses as well which does not need to be at graduate level. The reason is home office is only concerned for the business for which you applied in the beginning. They have no concern what other businesses you are doing. Hope you understand my point of view now. All forum members please correct me if I am wrong in this. Many Thanks

[entrepreneur123]

Dividend cannot be investment. Its not even accounting expense or business expense. So it can never be investment. UKBA has mentioned only salary in guidance policy because normally director own salary is business expense in accounting terms.


"A corporation's dividends are not an expense and therefore will not appear on its income statement. Cash dividends are a distribution of part of a corporation's earnings that are being paid to its stockholders."

source: http://www.accountingcoach.com/blog/dividend-payments

but definitely you can be an employee of your own company and take salary as PAYEE on your NVQ 4 business...

however money taken on your own PAYE will not be counted towards company expense(investment) though a staff salary will be counted towards company expense(investment) but a dividend taken out by you will be counted towards company expense and hence an investment.

for more information plz read policy guidelines