Tier 2 Sponsor - Property Investment LTD Company

Hi all,

I currently live and work in the UK on a Tier 2 Sponsorship. Have just submitted my extension and am waiting for my biometrics etc to come back.

I invest in property, and due to tax implications I have started a limited company for property investment "tax wrapper" purposes so my profits are not taxed at 40%. Upon opening a bank account, they have asked for proof from HMRC that i am able to work for this LTD company.

Now the issue is I dont actually work for my company, its purely investment and its passive income in which i supply capital for. Does anybody have any experience with this? Slightly concerned as my application hasnt come back yet, and this has been flagged up by my bank (Highly unlikely companies house or the bank will flag this up to home office, still a concern though).

Any advise greatly appreciated!

Brad

I think you have broken your Tier 2 visa condition. you are not supposed to start limited company as your job is restricted.

The rules and guidance are clear. You can only run a business or undertake any supplementary employment for fewer than 20 hours per week and if it is in the same category as the business you already work in.

See paragraph 245HC(d) of the immigration rules and paragraph 225 of the Tier 2 Policy Guidance about supplementary employment under Tier 2, and paragraph 6 of the immigration rules for confirmation that "employment" includes all business activity.

When was the last time you made a tax declaration for the investment business? Guessing you are receiving dividends from that business?

There is a straight COS salary to HMRC check performed. If your total income declaration is way above the expectations of your COS salary then that gets their attention. The first thing they think is happening is that you are employed by another business- when that draws a blank they go hunting to see where the other incomes comes from.

It is not an issue to be self employed operating a secondary business while on a Tier 2 visa. The issues are max time 20 hours per week / plus proving that and the job role activity you are doing as a self employed person must be that or close to the SOC on your COS.