Umbrella Companies sponsoring Tier 2 visa

I am already working on a WP in UK since last 3 yrs but planning to change as my visa expires in few months time.

I've approached few companies in UK who are ready to sponsor my Tier 2/work permit provided I work as a contractor as long as I'm employed there.They are going to charge a commision of around 25% on my earned Salary incl the NI.
There are conditions like no salary will be provided during idle period.

Apart from that moderators/senior members or if anyone who has worked with these companies can please share your thoughts.
Pls suggest if it is safe to switch to these companies.

Many Thanks

jack_daniel wrote:I am already working on a WP in UK since last 3 yrs but planning to change as my visa expires in few months time.

I've approached few companies in UK who are ready to sponsor my Tier 2/work permit provided I work as a contractor as long as I'm employed there.They are going to charge a commision of around 25% on my earned Salary incl the NI.
There are conditions like no salary will be provided during idle period.

Apart from that moderators/senior members or if anyone who has worked with these companies can please share your thoughts.
Pls suggest if it is safe to switch to these companies.

Many Thanks

Are these companies already Tier 2 licenced sponsors?

Who will you be sponsored by?

PaperPusher wrote:

jack_daniel wrote:I am already working on a WP in UK since last 3 yrs but planning to change as my visa expires in few months time.

I've approached few companies in UK who are ready to sponsor my Tier 2/work permit provided I work as a contractor as long as I'm employed there.They are going to charge a commision of around 25% on my earned Salary incl the NI.
There are conditions like no salary will be provided during idle period.

Apart from that moderators/senior members or if anyone who has worked with these companies can please share your thoughts.
Pls suggest if it is safe to switch to these companies.

Many Thanks

Are these companies already Tier 2 licenced sponsors?

Who will you be sponsored by?

Yes the company is licenced Tier 2 sponsor.
I've checked in the list of companies in ukba with Tier 2 CoS license.
Unlike other companies in fact they say they can help you find contract positions in ur skillset.

Just be careful of one point - once you have a Tier 2 from them, then whether they help you to find work or not, they do not lose. This is because, as they stated, you get no money when you are idle, and when you do work then they get a 25% cut.

Also note that they say they will find a contract for you but
1. They can very easily give you £150 a day when the actual amount the client pays is around £350. On top of that, the company will deduct their 25% from the £150 they give you.
2. You have to work on any role initially so they recover the cost of your visa. If they find a role for you then you will take it if there is nothing else around
3. End of the day, Tier 2s obtained like this will lead to problems in the long run. Spam 8's main aim will be to hire contractors to companies who cannot or do not want to worry about issuing visas. Such companies tend to pay a lot lower than market rates as you are not essentially a contractor on Tier 1 but a permanent employee on Tier 2.

Ensure you read all the paper work and ask all the questions you have before you take the jump. An imp one - can you find work on your own and negotiate rates or are they the ones who will tell you what to work on and where to go? If you control the type of work and contract rates directly with the client/employment agent then its good for you and should be fine. This way you know the total amount the client pays and Spam 8 takes a 25% cut which is ok - make sure the 25% cut is on net income and not after you pay tax on your salary.

KP

kenfrapin wrote:Just be careful of one point - once you have a Tier 2 from them, then whether they help you to find work or not, they do not lose. This is because, as they stated, you get no money when you are idle, and when you do work then they get a 25% cut.

Also note that they say they will find a contract for you but
1. They can very easily give you £150 a day when the actual amount the client pays is around £350. On top of that, the company will deduct their 25% from the £150 they give you.
2. You have to work on any role initially so they recover the cost of your visa. If they find a role for you then you will take it if there is nothing else around
3. End of the day, Tier 2s obtained like this will lead to problems in the long run. ***'s main aim will be to hire contractors to companies who cannot or do not want to worry about issuing visas. Such companies tend to pay a lot lower than market rates as you are not essentially a contractor on Tier 1 but a permanent employee on Tier 2.

Ensure you read all the paper work and ask all the questions you have before you take the jump. An imp one - can you find work on your own and negotiate rates or are they the ones who will tell you what to work on and where to go? If you control the type of work and contract rates directly with the client/employment agent then its good for you and should be fine. This way you know the total amount the client pays and **** takes a 25% cut which is ok - make sure the 25% cut is on net income and not after you pay tax on your salary.

KP

Thanks a lot for your suggestions KP.
Ideally I am looking for permanent position at the moment.But in the current market it hasn't happened till date.
So I've kept my options open to these so called umbrella companies.

And as you said I think if they've arranged for my position the actual rates will be very less in hand.
Also I know many contractors working in my domain and they say the cons company always takes away 40% or more of the actual rate in their commission anyways.

Yes their letter says..that I can look for contract positions on my own.

"Therefore, when it is known that the contract is to finish, we suggest that both yourself and ***, start looking for another contract. It is naturally in both our interests to keep you fully employed and we do not pay for a bench period. This means that you would not be paid for any gaps between contracts. We will normally review our margin after 12 months service."

Also they have another clause which says ...which I still need to clarify.

"We will obtain your permit for you. We will ask you for a surety deposit (520£). If you have not started work for us within 3 months of the visa issue date, we will cancel your permit and you will lose your surety deposit."



MODERATOR'S ADVICE: DO NOT PAY FEES/DEPOSITS/BONDS UP FRONT. HOWEVER, AN EMPLOYER WILL USUALLY MAKE A PROFIT MARGIN ON THE DIFFERENCE BETWEEN WHAT IT PAYS AN WHAT IT CHARGES THE CLIENT. IN LAW FIRMS THE TRADITIONAL MAXIM WAS ' 1/3rd to (fee earner) salaries, 1/3rd to overheads, 1/3rds to profit'

Wonder how the govt can allow such companies to be legal???

From what you have said, its pretty clear
1. No bench period. They will only wait for 3 months from the date they issue the WP.
2. If in 3 months, either you dont find work and start, or they cant find work for you, your WP will be cancelled and they take the £520 charge of the WP - simple
3. Dont think they will even try to find a job for you because they dont lose anything. They simply state they will help but do you really think so?
4. The statement about looking for future roles does not clearly state that you will negotiate the rate with client directly. I think it will just be you finding the role and then the agency steps in to discuss final rate.

Given all this complication, potentially illegal activity and certainty that you may not get the amount required to qualify for extending your stay on WP, is there any particular reason for continuing here? You havent given much details about yourself other than you have been here for 3 years on WP - going ahead you need to meet specific salary criteria and be on the SOC(?) to be granted PR - will this company help you do all that in a few years time? Problem with issuing WPs is getting tighter every year so you may not have too many options over the next 2 years when your qualify for PR.

KP

Hi jack_daniel, did you decide to proceed with this? I am a contractor too, working in Post study work visa, and came across the same scheme. I was wondering you got any further information on this.

Many thanks

Hi RealMJFan,

I still not convinced by their terms and conditions.
I'm in touch with them and will have a face-2-face discussion by the end of this May about all the aspects of it.
As it stands now they are ready to pay 68-70% of the actual contract value
as a salary , which is again taxable (25-30%) as in case of any permanent emp.

Even if you agree with that offer you have to take risk upon the random IT Contracting market.
Meanwhile u can send me a private message abt ur situation.

Hi Jack,

Can you please send me a list of umbrella companies willing to sponsor T2. I am in a similar situation and want to switch. I have sent you a PM. Please reply.

Regs

I've been contracting on a Tier 2 for a few years and my number 1 priority is to get settlement. So I'm always looking at the next contract and talking to recruiters just in case something happens with this current project.

Luckily my sponsor company is very understanding that I want ILR. We manage my PAYE so it runs even between contract periods. It took a few months to build this up, but has been so worth it for the peace of mind.

I agree with @kenfrapin to not rely on the sponsoring company to help find work. One of my uni friends went through such company and found them very slow. She had the problem where she was pressured to take a contract they were offering even though she could earn a higher rate elsewhere.

I was just reading through and I'd just like to ask. This sort of company taking cuts on salaries just to provide a CoS, is this not exploitation of workers? A one-off fee is ok but continuously taking a percentage of the workers' pay?!

titoyin wrote:I was just reading through and I'd just like to ask. This sort of company taking cuts on salaries just to provide a CoS, is this not exploitation of workers? A one-off fee is ok but continuously taking a percentage of the workers' pay?!

Well thats how they make money and run a business - thats the simple answer. Why should they go through all the fuss and only take money for the initial Work Permit or a one off payment say 2 months pay? Makes no sense at all and its not that they get a million requests to survive solely on one off fees.
Yes, it can be seen as exploitation but then, if not them, how would so many eligible candidates go about getting a job if they dont have any other option?

KP

Titoyin - this is not specifically related to Tier 2 - Umbrella Companies tend to do this with everyone. Some have fixed charges, others charge a variable rate based on the contract you have. They provide the candidate with a service in terms of invoicing the client, receiving the money, calculating and paying taxes and national insurance and then disbursing the balance to the contractor. Most also offer services such as tax structuring and advice. To simply pay a one-off charge would mean these company are not paid for a continuous service they provide. This is not done in exchange of a CoS (which I don't necessarily agree with), but is done for other services rendered regardless of your immigration status.

Does any one of you know any umbrella company who gives WP & then they take a certain % of your salary. I am in a real need of such company cuz i dont need the company to find a job & i'll pay them whatever % they charge.

Dear All,

After reading the above all posts, I was wondering If there is any opportunity for my brother who is a textile engineer in Pakistan, Who wants to work in UK.


Any suggestions, advice

Hi

Can you please let me know the name of the umbrella company through which you had applied.

Thanks & Regards,
dk

Hi

If anyone needs help, they should send their CV to

Tier2jobs@workpermit.com

If you have already been offered a contract, or have spoken to potential clients, do be sure to mention it.

As Slugmeister mentions, you will be taken most seriously if

a) You are in the UK (failing this, prior UK experience is a big plus)

b) You have an offer

c) You are in a field which has a large contracting/consulting sector. IT is the main one, but some areas of engineering, finance, and healthcare may also be suitable.

Good luck

Hi,

Please let me know of the umbrella companies that you are using to help me to apply for a visa from within the UK. What is the minimum and/or maximum amount of time that one can apply for a visa with the umbrella companies. Also, kindly let me know of the potential earnings from the IT contracts and the estimated deductions for the umbrella companies. Thank you.

PaperPusher wrote:

jack_daniel wrote:I am already working on a WP in UK since last 3 yrs but planning to change as my visa expires in few months time.

I've approached few companies in UK who are ready to sponsor my Tier 2/work permit provided I work as a contractor as long as I'm employed there.They are going to charge a commision of around 25% on my earned Salary incl the NI.
There are conditions like no salary will be provided during idle period.

Apart from that moderators/senior members or if anyone who has worked with these companies can please share your thoughts.
Pls suggest if it is safe to switch to these companies.

Many Thanks

Are these companies already Tier 2 licenced sponsors?

Who will you be sponsored by?

Dear jack please can u tell me how to get a tier 2 sponsorship as im also looking to switch to another employer, im a tier 2 holder at the
Moment but am fed up of my current employer, please help thank you
Looking forward to it

Hi,

Pls can you let me know the name of the company which sponsors Tier2 Gen?
Thanks.

Does any one of you know any umbrella company who gives Tier 2 and contract and take a certain % of your salary.

I don't and I am in need of someone urgently. Please help us guys !!!

here is the list of all companies in UK but you need to pick right one for ur case and they should have COS in hand to sponsor you...

http://www.ukba.homeoffice.gov.uk/sitec ... ofsponsors

kranthi15 wrote:here is the list of all companies in UK but you need to pick right one for ur case and they should have COS in hand to sponsor you...

http://www.ukba.homeoffice.gov.uk/sitec ... ofsponsors

Great info. Cheers

Dear Friends,

Please do help me by replying my post. I have read all your post. I have heard many people talking about this umbrella companies. But they say its only for IT professionals and people who earn a lot. I am from science field. After so much struggle I have recently got a job in a pharmaceutical company for 1 year contract but they only gave me five months at the moment since I have my visa for five months. my employer asking me to sort out my visa. I strongly believe they will extend my contract again with my hard work. Please do help me friends.