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Apart from contracting being illegal on a T2 anyway, performing the same role as previous would fall under IR35 rules meaning you'd be taxed as an employers and worse off, since you'd also be responsible for employers National Insurance, unable to claim any business expenses, no sick pay and no holiday pay.adi27 wrote:By contracting I mainly mean working on a daily rate for an agreed period of time, say one year. IMO, working on a daily rate is much more beneficial than a what I otherwise now earn as a permanent employee.So, my question is given the fact that I'm not breaking any law by working directly for my sponsor, would it be illegal to continue doing the same, but on a daily rate and only for a period of time ?
Correct yes.adi27 wrote:Many thanks for the response. I'll check these out. So it seems I've no option but to wait till I obtain ILR in order to start working as a contractor legally?