Working in Wife's LTD company as part-time consultant

[shnkuk246]

Hi,

I'm working in UK on Tier 2 General Visa, I've some opportunity to work part-time (under 20 hours) as a contractor in the same line of work as per my COS. I don't want to go through an umbrella company as this will push me in 40% tax bracket. Can my wife (Tier 2 Dependent VISA) open a LTD company under her name and can I work on part-time contract through her LTD company?

I've taken approval from my employer and that is not an issue. I just want to make sure that I don't run into trouble with HMRC?

Please advice.

[iworker]

i dont think u will get a firm advise on this forum.. its an immigration forum and not tax one.

[Wanderer]

Contracting on a T2 is not allowed no matter how much you try to hide under a legal framework.

[Casa]

Wanderer may be the only one able to answer this, but contracting isn't permitted on Tier 2 is it?
"You must not be: Contracted to undertake an ongoing routine role or to provide an ongoing routine
service for the third party, regardless of the length of any contract between you and
another."


Edit: Beaten by on the ball Wanderer

[shnkuk246]

Contracting on a T2 is not allowed no matter how much you try to hide under a legal framework.

Thanks for your reply, but it does say that
"the Tier 2 visa allows a small ammount of work but it must be
- related / same profession AND level of professional work as the original sponsored work
- not more than 20 hours extra"

[CR001]

It does not say you are allowed to contract. And to be honest, working for a company that your wife 'owns' will almost certainly raise eyebrows with HO.

An example of what your quote refers to is if a Dr has a Tier 2 G with a NHS trust, but does 20 hours of extra work in the same capacity at another trust.

Page 55 Tier 2 Policy Guidance (click)

Secondary employment applications
223.You will need authorisation of any additional work not covered by supplementary or
voluntary work. The secondary employment must be with a licensed sponsor and you will
need a new Certificate of Sponsorship from that sponsor.
224.This application will be considered separately from your first application and must meet the
full Tier 2 criteria by itself. You must meet all the points requirements, which may include
your new sponsor carrying out a resident labour market test.
225.You must include a letter with the application explaining that you wish to vary your existing
leave. The letter must also include:
 your name; and
 your date of birth; and
 your first Certificate of Sponsorship reference number (from your previous application);
and
 the date your current leave expires.
226.You can only apply for secondary employment after starting work with your first sponsor.
227.If we approve your secondary employment we will have to vary your initial grant of leave.
You will have 2 sponsors during the period that both your Certificates of Sponsorship are
valid. You will be issued a new biometric residence permit (BRP) card indicating that you
have secondary employment. You cannot start work with your second sponsor until your
application for secondary employment has been approved.

[shnkuk246]

It does not say you are allowed to contract. And to be honest, working for a company that your wife 'owns' will almost certainly raise eyebrows with HO.

An example of what your quote refers to is if a Dr has a Tier 2 G with a NHS trust, but does 20 hours of extra work in the same capacity at another trust.

Page 55 Tier 2 Policy Guidance (click)

Secondary employment applications
223.You will need authorisation of any additional work not covered by supplementary or
voluntary work. The secondary employment must be with a licensed sponsor and you will
need a new Certificate of Sponsorship from that sponsor.
224.This application will be considered separately from your first application and must meet the
full Tier 2 criteria by itself. You must meet all the points requirements, which may include
your new sponsor carrying out a resident labour market test.
225.You must include a letter with the application explaining that you wish to vary your existing
leave. The letter must also include:
 your name; and
 your date of birth; and
 your first Certificate of Sponsorship reference number (from your previous application);
and
 the date your current leave expires.
226.You can only apply for secondary employment after starting work with your first sponsor.
227.If we approve your secondary employment we will have to vary your initial grant of leave.
You will have 2 sponsors during the period that both your Certificates of Sponsorship are
valid. You will be issued a new biometric residence permit (BRP) card indicating that you
have secondary employment. You cannot start work with your second sponsor until your
application for secondary employment has been approved.

Yes, I did read the case of the Dr you mentioned. And based on the points you mentioned, I have one doubt. Whether my employment will come under secondary job or part-time work? As the rules are different for each of them. Please correct me if I'm wrong.

[Wanderer]

You wife's company would employ you but can only do work for that company/employer, not for another via an intermediary.

Don't even think about it, HMRC aren't stupid and Hector will rip you a new one for even trying it.

Look in the ILR forum for dozens for folks being denied ILR for taking on HMRC hoping to pull the wool over their eyes.

[noajthan]

Hi,

...

I don't want to go through an umbrella company as this will push me in 40% tax bracket. Can my wife (Tier 2 Dependent VISA) open a LTD company under her name and can I work on part-time contract through her LTD company?

...

Please advice.

Don't you think every Tamas, Dirk, and Haime would be doing this if it was above aboard.

What is your wife's company if not an umbrella - or at least a lady's parasol if you will?!

[shnkuk246]

You wife's company would employ you but can only do work for that company/employer, not for another via an intermediary.

Don't even think about it, HMRC aren't stupid and Hector will rip you a new one for even trying it.

Look in the ILR forum for dozens for folks being denied ILR for taking on HMRC hoping to pull the wool over their eyes.

Thanks Wanderer, yeah makes sense now. I can't work for another employer from my wife's company.
In that case can I work part-time on contract through an umbrella company?
Really appreciate your time and advice.

[CR001]

In that case can I work part-time on contract through an umbrella company?

No, this would be contracting and is not allowed.

[shnkuk246]

In that case can I work part-time on contract through an umbrella company?

No, this would be contracting and is not allowed.

Ok, my employer is flexible. How can I then work part-time legally?

[CR001]

Find a proper employer who you will work for directly. What line of work or job do you do? Is your SoC on the shortage occupation list?

[shnkuk246]

I'm in software development. The employer is a proper company where I intend to work part-time.

[CR001]

The employer is a proper company where I intend to work part-time.

Which employer is this?

[shnkuk246]

It's a service providing company but I would not like to disclose the name here. Hope you understand. I was looking at the option of Ltd company just to save on tax. Can I work directly for this company part-time?

[CR001]

I wasn't asking for a company name

You went from saying this :

In that case can I work part-time on contract through an umbrella company?

to saying this :

The employer is a proper company where I intend to work part-time.

You cannot contract through an umbrella company.

For supplementary (or part time) employment, the following will apply :

Supplementary employment
221.You do not need to inform us of any supplementary employment, as long as it is:
 in either a job which is included on the Shortage Occupation List in Appendix K of the
Immigration Rules or a job in the same profession and at the same professional level as
the work for which your Certificate of Sponsorship was assigned; and
 no more than 20 hours per week; and
 outside of the normal working hours for which your Certificate of Sponsorship was
assigned.
In addition, you must continue to work for your sponsor in the job recorded on your Certificate
of Sponsorship.

[shnkuk246]

Oops, I thought you're asking the employer not umbrella company. So I can work if the employer is paying me directly for any part-time work that I'm doing for them. But if the employer is paying through a third party or umbrella then I can't. Is that right? Please pardon my ignorance on this.

[CR001]

But if the employer is paying through a third party or umbrella then I can't. Is that right?

Correct yes. You have to work directly for the employer on their payroll.

[Frontier Mole]

And the work you do can not be for a third party.