Entrepreneur extension - subcontracting

[Rockey]

Hi everybody ,

i got one query if any can help me out , will be highly appreciated !

my entrepreneur extension visa is due within few months, i have been doing subcontracting for 3 clients for long time but i have not signed any formal contract between clients and company they pay invoice monthly, my query is:
is subcontracting allowed under entrepreneur visa ?
to b honest i could not find particular paragraph under immigration rule!!

Regards

[marcnath]

Hi everybody ,

i got one query if any can help me out , will be highly appreciated !

my entrepreneur extension visa is due within few months, i have been doing subcontracting for 3 clients for long time but i have not signed any formal contract between clients and company they pay invoice monthly, my query is:
is subcontracting allowed under entrepreneur visa ?
to b honest i could not find particular paragraph under immigration rule!!

Regards

Subcontracting is a rather broad term. The Tier 1 Entrepreneur conditions do not allow you to work for businesses other than the one you are a Director of.

Pg 80 of the Guidance document has some good details on what may be considered as working for other business (even if your company is getting paid by your customer). It boils down to what the service you are doing and how it is compensated for. If you can expand on those, it will be easier to comment.

[zimba]

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

[Rockey]

Thankyou so much Marcnath and Zimba for prompt quick response , much appreciated.

Actually i (my company) charge the other company for book keeping services, provided on daily basis for 3 days a week and i have to generate invoice once a month and that money goes straight to my business account.. so i m not sure how will i be justifying/satisfying an interviewer in case interview takes place in my office ?

I m totaly confused!

[marcnath]

Thankyou so much Marcnath and Zimba for prompt quick response , much appreciated.

Actually i (my company) charge the other company for book keeping services, provided on daily basis for 3 days a week and i have to generate invoice once a month and that money goes straight to my business account.. so i m not sure how will i be justifying/satisfying an interviewer in case interview takes place in my office ?

I m totaly confused!

Do you invoice for the number of days you work at a daily/hourly rate ?
Does your customer expect that you personally are doing the work ?
You mentioned you have three clients, so it 3 days a week for one and 1 day a week for the others ?

If the answer is yes to one or more of the above questions, the chances are higher that it will considered working for the client than for your business.

This is not a definitive assessment and as the guidance says, HO will take a number of other factors into the decision such as if you have employees, what do they do and so on.

If, on the other hand, the client is paying you x pounds a month to just do all of the book keeping work, then you have a better chance of being assessed as working for your own business.

[Rockey]

Thanks for quick reply ..

The answer of all above three questions is YES..but i charge for full day.

One client amongst the three ,is not my company's client i am not charging from him directly, my company invoice main company ABC and ABC charge to that client whom i m giving services!
The case looks straight forward to be subcontractor!

That is why i m stressed , how will i convince home office in case of interview!!!

[marcnath]

Thanks for quick reply ..

The answer of all above three questions is YES..but i charge for full day.

One client amongst the three ,is not my company's client i am not charging from him directly, my company invoice main company ABC and ABC charge to that client whom i m giving services!
The case looks straight forward to be subcontractor!

That is why i m stressed , how will i convince home office in case of interview!!!

Do you have any employees ? If so, what do they do ?

[Rockey]

Thanks .
i had two full time employees for one year , one for office administration and second one was working as business consultant , both left a year ago.., currently i am on my own, as business cant afford at the moment so i am giving services myself..

[marcnath]

Well, I am not going to sugarcoat this. But you are definitely running a high risk of falling foul of the T1E rules.
You mentioned you have a few months to go for before the extension. If you can, over this time, see if you can run it more as a service business rather than just subcontracting yourself. Not sure if you have a website, you are doing some marketing and so on. If not, doing those will help. If your arrangements with your customers can be changed to fixed monthly fees with specific tasks and outcomes instead of number of days, that will help. And, of course, having another employee that could do the work will also help.
But otherwise, the way you are working currently is exactly what HO does not want T1E holders to be doing. So there is nothing I can think of that would help convince them otherwise.

[manu2017]

Hi everybody ,

i got one query if any can help me out , will be highly appreciated !

my entrepreneur extension visa is due within few months, i have been doing subcontracting for 3 clients for long time but i have not signed any formal contract between clients and company they pay invoice monthly, my query is:
is subcontracting allowed under entrepreneur visa ?
to b honest i could not find particular paragraph under immigration rule!!

Regards

Hi Rockey, the subcontracting is very board term and don't get confuse this with the contracting and working for others term. Did you send your contracts at the time of initial grant of Visa ?? If so, then you don't have to send the contacts again at the time of extension (as they're not mandatory). Just send your last 3yrs Invoices raised to all of your 3 clients each month and please make sure invoices paid within the due date.

There are many I know doing contracting or subcontracting got their extension approved, you don't have to send many docs to HO. Just try to be more focus around your busniess and money you're generating from that business. hope this will help you in your extension and best of luck, BR

[Rockey]

thankyou Marchnath and Manu..

i have website and advertising properly..

I think its not mandatory to send all invoices so i m thinking what will be the best , i m just assuming i should send one month business bank statement..

[marcnath]

thankyou Marchnath and Manu..

i have website and advertising properly..

I think its not mandatory to send all invoices so i m thinking what will be the best , i m just assuming i should send one month business bank statement..

Yes, send the absolute minimum documents needed. One business bank statement, only one years accounts, maybe the one when you had employees and so on. Your best bet is to avoid being picked up for interview.

[manu2017]

thankyou Marchnath and Manu..

i have website and advertising properly..

I think its not mandatory to send all invoices so i m thinking what will be the best , i m just assuming i should send one month business bank statement..

I believe you have to send atleast 6 months business bank statements to show the max transactions in the account and earning of the company along with the last one year normal excel invoice mentioning you company name and the client you invoice to. Just dont add the contracts, yes go with the advertising and other marketing material avaialble for the business. BR

[marcnath]

thankyou Marchnath and Manu..

i have website and advertising properly..

I think its not mandatory to send all invoices so i m thinking what will be the best , i m just assuming i should send one month business bank statement..

I believe you have to send atleast 6 months business bank statements to show the max transactions in the account and earning of the company along with the last one year normal excel invoice mentioning you company name and the client you invoice to. Just dont add the contracts, yes go with the advertising and other marketing material avaialble for the business. BR

Going by the comments from others on this forum, HO seems to be in the habit of contacting customers. If I were in your place, I would avoid sending any contracts, invoices and anything else that identifies specific clients.

[Rockey]

Thanks mate..I reckon its better idea not to send any invoices unless HO asks , just thinking one month business bank statement is enough but i doubt HO may call for interview if they dont find all investment transactions !

[marcnath]

Thanks mate..I reckon its better idea not to send any invoices unless HO asks , just thinking one month business bank statement is enough but i doubt HO may call for interview if they dont find all investment transactions !

If your investment is by DL then it is mandatory to submit all transactions that show the investment. If you have done it by share capital then one statement is sufficient

[manu2017]

Thanks mate..I reckon its better idea not to send any invoices unless HO asks , just thinking one month business bank statement is enough but i doubt HO may call for interview if they dont find all investment transactions !

I still believe you provide them all your business invoices and not to worry too much, hidding will raise doubts in their mind and you may be call for interview or complex issues. Give them something and hide most of the things, plan has to be smart. BR