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Settlement Visa Contractor Query (Ltd Company or Umbrella)

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confusedukdesi
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Settlement Visa Contractor Query (Ltd Company or Umbrella)

Post by confusedukdesi » Mon Jun 19, 2017 8:20 am

Hi experts,

I really need your advice on something urgently.

I am a naturalized British citizen and I am living in India since last 4 years with my wife and two kids.
We are now planning to go back to the UK. Wife and Kids (aged 5 yrs twins) are Indian citizens.

My current job in India pays more than the financial threshold of 24800£ required. I now have an offer for a contract job (Technical PM) for 3 months paying 450£ a day. The agent feels there is a good chance of extension but obviously no guarantees. I am still confused on if I should leave a very well paying and satisfying job in India for a short contract in the UK, especially with Brexit crisis etc but that's a different question altogether.I am hoping I will get an extension or another contract.


Now my query is how to make the move right, so I can apply for my family's settlement visa in the shortest time possible.

Option 1:

Set myself as a Pvt Ltd company and wait for 12 months for the full financial year records before applying visas

Option 2:

Set myself under an umbrella company and pay taxes under PAYE. This should allow me to apply for visas in six months time I understand, as the requirement for salaried employment is pay slips for 6 months.

Is there any other way I could work this, so time required for visa application is shorter? Does my current overseas employment in India, which is easily above the threshold required, be used in anyway to help the case.

Looking for urgent advice, as I have to accept the contract in the next couple of days.

Thanks in Advance.

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Tue Jun 20, 2017 8:02 am

Hi All,

Any guidance would be truly helpful.

Thanks.

secret.simon
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by secret.simon » Tue Jun 20, 2017 9:07 am

I could be entirely wrong (so wait for others to comment before any action), but given that you have earned more than the threshold amount in the past year AND have a letter of employment in the UK above the threshold amount, I think you can apply now.
I am not a lawyer or immigration advisor. My statements/comments do not constitute legal advice. E&OE. Please do not PM me for advice.

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Casa
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by Casa » Tue Jun 20, 2017 9:17 am

secret.simon wrote:I could be entirely wrong (so wait for others to comment before any action), but given that you have earned more than the threshold amount in the past year AND have a letter of employment in the UK above the threshold amount, I think you can apply now.
Yes, assuming the offer of employment is ongoing and not a short-term contract.
(Casa, not CR001)
Please don't send me PMs asking for immigration advice on posts that are on the open forum. If I haven't responded there, it's because I don't have the answer. I'm a moderator, not a legal professional.

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Wed Jun 21, 2017 5:45 pm

It is indeed a short term contract, only for 3 months.

I think I can apply on Category A, overseas income.
I could get an employment offer from one of my friends, who runs a ltd company for last 5 yrs. Would this work ? Is there any rule that I have to join the same company, the offer which I evidence for visa?

Pls let me know if there are any issues with this

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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by CR001 » Wed Jun 21, 2017 6:25 pm

confusedukdesi wrote:I could get an employment offer from one of my friends, who runs a ltd company for last 5 yrs. Would this work ? Is there any rule that I have to join the same company, the offer which I evidence for visa?
That would be providing false or misleading information. Never a good idea when dealing with UKVI/HO, especially as this trick of 'employment' is well known already.
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confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Wed Jun 21, 2017 8:46 pm

OK. It's really disappointing that a contract job that pays good money is not considered an offer of employment. My agent is ready to offer a six month contract, if that helps. Or would that not be enough.

In which case, I am back to my original query. Is umbrella company considered permanent employment? If I go ltd, how long would I need to wait before applying?

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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by Wanderer » Wed Jun 21, 2017 8:58 pm

You should be aware that the in UK contracting market despite having a say six month contract you can be canned any time and indeed, before you even start, no notice and no pay.

If there's no work, there's no contract, so contract length is worth nothing.

Contracting is a B2B relationship, not employer/employee.
An chéad stad eile Stáisiún Uí Chonghaile....

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Thu Jun 22, 2017 5:28 am

Agreed.

However, I do not have a permanent offer. So, if I start via an umbrella and show payslips for first couple of months with overseas income for 12 months, would that be fine?

It is frustrating that even when people meet the financial requirements, there is so much hindrance just by way of paperwork.

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Thu Jun 22, 2017 7:23 am

I was just looking at the Appendix, and a fixed term contract seems to be an accepted offer.

5.5.1. Employment can be full-time or part-time.
5.5.2. Employment can be permanent, a fixed-term contract or with an agency.

With the twelve months payslips from my overseas employer, and a fixed term contract for six months in UK, I should be able to apply under Category B I am hoping.

Experts, any advice is appreciated.

mb7891
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by mb7891 » Thu Jun 22, 2017 9:06 am

confusedukdesi wrote: a fixed term contract for six months
I thought you said the contract was for 3 months?

mb7891
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by mb7891 » Thu Jun 22, 2017 9:15 am

mb7891 wrote:
confusedukdesi wrote: a fixed term contract for six months
I thought you said the contract was for 3 months?
Ignore the last post, read the below on CAT B and Salary from outside the UK

Salaried employment outside the UK

Where the applicant’s partner is returning to the UK with the applicant to work, the UKVI will assess the application in two parts:

Firstly, the applicant’s partner must have a confirmed offer of salaried employment to return to in the UK which will start within three months of their return. The offer of employment must have a gross annual starting salary of at least that relied upon in the application. Any shortfall may be supplemented by non-employment income, cash savings or pension.

Secondly, the applicant’s partner must have received in the 12 months prior to the date of application an income which meets or exceeds the required level based upon:

The gross amount of salaried employment earned overseas;
The gross amount of any specified non-employment income;
The gross amount of any state or private pension;

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by confusedukdesi » Thu Jun 22, 2017 1:04 pm

Thanks for the input. However, I found the following text in the Appendix.
5.4. Category B: Less than 6 months with current employer or variable income – overseas sponsor returning to the UK

5.4.1. Where the applicant’s partner is returning with the applicant to the UK to work, they do not have to be in employment at the date of application to rely on Category B. Instead, the financial requirement must be met and evidenced in two parts in the following way.

5.4.2. First, the applicant’s partner must have a confirmed offer of salaried or non-salaried employment to return to in the UK (starting within 3 months of their return). This must have a gross annual starting salary (or in non-salaried employment a gross annual income from that employment, based on the rate or amount of pay and the standard or core hours to be worked provided by the employer in evidence) sufficient to meet the financial requirement, alone or in combination with any or all the sources at section 5.3.6. (Category C: non-employment income, Category D: cash savings and Category E: pension).
5.4.3. Second, the couple returning to the UK must in addition have received in the 12 months prior to the date of application the level of income required to meet the financial requirement, based on:
 The gross amount of salaried or non-salaried employment income overseas of the applicant’s partner;
 The gross amount of any specified non-employment income received by the applicant’s partner, the applicant or both jointly, provided they continue to own the relevant asset (e.g. property, interest from shares) at the date of application; and/or
 The gross amount of any State (UK or foreign) or private pension received by the applicant’s partner or the applicant.

Appendix FM 1.7: Financial Requirement
May 2016
28
I have highlighted the main bits. I meet the first requirement, as a 3 or 6 month contract is a fixed contract that specifies day rate, and will be for a job to start within three months of application date.

For the second requirement, I have 12 months payslips and tax records that meet my financial threshold requirement(£24800)


Would that suffice? My only concern is if the contract offer is acceptable to UKVI. I really don't see any reason why it should not be, as in the guidance under general requirements they clearly say the following
5.5.2. Employment can be permanent, a fixed-term contract or with an agency.
But you never know with the UKVI, and hence I want your expert interpretations. IMO, I qualify under 5.4.
Category B: Less than 6 months with current employer or variable income – overseas sponsor returning to the UK


Once I start contract employment, it should be irrelevant to UKVI as to how I process my payroll (Ltd company or Umbrella). It would become relevant for FLR perhaps but for now, my financial evidence is past overseas salary and future employment, both of which meet the threshold.

Would you agree with that interpretation or do you see any issues?

mb7891
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrell

Post by mb7891 » Thu Jun 22, 2017 7:25 pm

Hi

My last post was in support of your view.

As you have posted you need to meet financial requirements in 2 ways. 12 months from outside uk salary and with a offer of employment in your case 6 month contract as long as it covers the same amount of the financial requirement as you have stated.

it is in line with immigration rules, but we are not the ECO's so can not really say if they think it will suffice :o)

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrella)

Post by confusedukdesi » Mon Nov 06, 2017 3:54 pm

Hi All,

I am in the middle of a contract and I have invoices for the last three months. However, as most of you know UKVI need the full years CT return and paperwork as financial evidence for self employed sponsors.

I just came across the link below and I was hoping this new ruling might help self employed sponsors like myself.

The rules now indicate that the UKVI will consider the following:

credible prospective earnings from the sustainable employment or self-employment of the applicant or their partner; or
any other credible and reliable source of income or funds for the applicant or their partner, which is available to them at the date of application or which will become available to them during the period of limited leave applied for.
This was really positive until I saw the rest of the article.

It is vital to note that where such exemption applications are made as indicated above. The applicant will be placed on a 120-month route (10 years) to settlement (ILR/Naturalisation), if during this time the sponsor/ applicant meet the income requirement without the four exceptions above, then the applicant can revert to being on the 60-month rout (5 year route to settlement).


I am definitely not interested in get into the 10 yr route to settlement.

In my case, I have payslips from my permanent job up until 3 months ago, and invoice payments from the contract role for the most recent three months. If I now get a letter from my client, should that be enough proof for prospective earnings? If so, under which category (A/B/C) should I apply?

This is all just confusing, and I have been already away from my family for three months. :(

confusedukdesi
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Re: Settlement Visa Contractor Query (Ltd Company or Umbrella)

Post by confusedukdesi » Thu Nov 09, 2017 1:05 pm

Hi All,

Any advice would be appreciated.

Thanks.

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