Document for employeer

[irana2015]

Hello Gurus,

I have applied for my Tier 1 entre extesnion and my employeer is asking if I am still eligible to do contract work while I am waiting for my extension.

Can someone please refer me to any document which can help?

Thanks
IR

[CR001]

What is your business if your are contracting and have an 'employer'?

[irana2015]

Yes I am an IT consultant working for a temporary project via Agecny to a third party employeer.

Thanks
IR

[zimba]

When you apply before you visa expires for your extension, your leave will be extended under section 3C rules until your extension application is decided.

Given the information regarding the nature of your work, I am afraid that you could be in breach of your conditions of stay under Tier 1E rules. You are not allowed to take jobs like IT contracting via agencies as that amounts to having a contract of service which is not allowed. The mere fact that your so called third party client or agency is concerned about your immigration status means that you are not working as a genuine entrepreneur but rather filling a position in another company similar to what an employee would do. Based on HMRC rules, you are technically an employee and have to pay higher NI taxes even if you run your own company. (Heard of IR35 rules ??)
Have you looked at the Annex A (item A41) in the guide ??? Do you understand the rules regarding your activity ??

Genuine Entrepreneur Activity (contract of service with another business)
A41. If you are granted leave to enter or remain as Tier 1 (Entrepreneur) migrant, your leave will prohibit you from engaging in employment except where you are working for the business which you have established, joined or taken over . You will comply with this restriction if, for example, you are employed as the director of the business in which you have invested, or if you are working in a genuinely self - employed capacity. In this capacity you will have a contract for service.

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. 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 the factors set out in the employment status section of gov.uk.

If your work amounts to no more than employment by another business, we may consider you to be working in breach of your conditions of stay , and that you are therefore liable to curtailment of your stay and/or removal from the United Kingdom.

[Webpreneur]

Good afternoon Everyone,

My suggestion would be get contract with companies directly without involving any middle party.
Please correct if I am wrong Zimba.

Many Thanks

[zimba]

Good afternoon Everyone,

My suggestion would be get contract with companies directly without involving any middle party.
Please correct if I am wrong Zimba.

Many Thanks

If you are personally responsible to work for a client and provide any service based on a contract, then such an activity is not considered entrepreneurship but employment, not matter if you were hired directly or via an agency. You are generally having a contract of service and NOT a genuine entrepreneur if:

- You personally perform services for another person or business (the client) or are under an obligation to do so
- The services are provided to the client through an intermediary such as a limited company or partnership
- Your services are supplied as either an office-holder of the client or if you had provided the services directly to the client under a contract between you and the client, your employment status would be regarded as being that of an employee or office-holder of the client

[Webpreneur]

Thanks Zimba for giving right information

[infinitesmile]

hi zimba,

What if the Contract says that "Contract for Services" that still would be not allowed. Because I thought you can provide Contract for Services rather than contract of services???

[zimba]

hi zimba,

What if the Contract says that "Contract for Services" that still would be not allowed. Because I thought you can provide Contract for Services rather than contract of services???

I already described above what having a contract of service means. Only the actual nature of your work matters. Contracting personally and merely in capacity of an employee is NOT allowed, no matter what your contract says.