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Contracts problem

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

Moderators: Casa, John, ChetanOjha, archigabe, CR001, push, JAJ, ca.funke, Amber, zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, meself2, geriatrix

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shaz007
Junior Member
Posts: 90
Joined: Fri Feb 07, 2014 7:21 pm

Contracts problem

Post by shaz007 » Fri Feb 12, 2016 6:08 pm

HI All,

I have a Question for all Entrepreneur Visa holders. If someone been doing some contracts through agency and i found out that agency has reporting system they ask for NI now and report to HMRC. does this make any effect on Entrepreneur Tier 1 visa extension what is the purpose and point to do so ?

Please reply and i would appreciate if Senior members of the board can put some light on this matter .

Thanks in Advance .

moongesture
Member of Standing
Posts: 291
Joined: Sat Oct 13, 2012 1:06 pm

Re:Contracts problem

Post by moongesture » Fri Feb 12, 2016 7:06 pm

If you have worked for your own business then its no problem.

shaz007
Junior Member
Posts: 90
Joined: Fri Feb 07, 2014 7:21 pm

Re: Contracts problem

Post by shaz007 » Fri Feb 12, 2016 10:40 pm

yeah but what about intermediate agency who is the middle man

moongesture
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Posts: 291
Joined: Sat Oct 13, 2012 1:06 pm

Re: Contracts problem

Post by moongesture » Fri Feb 12, 2016 11:12 pm

shaz007 wrote:yeah but what about intermediate agency who is the middle man
A valid NI contribution can only be reported to HMRC for "employee" in any capacity. If reported wrongly can be correct at later stage.
A Tier 1 migrant can not be at any payrol other then his own business. In above scenario such submission can cause serious problem during extension if not corrected.

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zimba
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Posts: 21809
Joined: Mon Aug 11, 2014 6:13 pm
Location: UK
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United Kingdom

Re: Contracts problem

Post by zimba » Sat Feb 13, 2016 1:31 am

shaz007 wrote:HI All,

I have a Question for all Entrepreneur Visa holders. If someone been doing some contracts through agency and i found out that agency has reporting system they ask for NI now and report to HMRC. does this make any effect on Entrepreneur Tier 1 visa extension what is the purpose and point to do so ?

Please reply and i would appreciate if Senior members of the board can put some light on this matter .

Thanks in Advance .
You cannot be on the payroll of a company that you are not a director of as this is considered employment and is not allowed under immigration laws. Your application for extension/ILR certainly will be refused in that case. Also remember that contracting or running a personal service company is not allowed under Tier 1 entrepreneur visa.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

miss khan
Newbie
Posts: 33
Joined: Sat Aug 23, 2014 5:01 pm

Re: Contracts problem

Post by miss khan » Sat Feb 13, 2016 6:34 am

"Also remember that contracting or running a personal service company is not allowed under Tier 1 entrepreneur visa."
Can you plz explain this point .....

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zimba
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Location: UK
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United Kingdom

Re: Contracts problem

Post by zimba » Sat Feb 13, 2016 7:47 pm

miss khan wrote:"Also remember that contracting or running a personal service company is not allowed under Tier 1 entrepreneur visa."
Can you plz explain this point .....
If you do any work through your company which amounts to merely filling a post in another company (e.g contracting for services), then you are not really an entrepreneur because you are running a Personal Service Company. You could be affected by the HMRC's infamous IR35 tax rules.

Read more: https://www.gov.uk/guidance/ir35-find-out-if-it-applies

If IR35 applies to you under any circumstance, you could be in breach of your conditions of stay
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

Vish79k
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India

Re: Contracts problem

Post by Vish79k » Mon Sep 04, 2017 1:26 am

Mate whats going on with your case?shaz007

QSDanik
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Re: Contracts problem

Post by QSDanik » Mon Sep 04, 2017 9:52 pm

Hello Zimba !
its bit complicated! can you see in my situation, For example, I have subcontract from "X" company to supply staff to "Y" company, as "X" is National agency , so to supply staff to "Y" party I have to be on the panel of "X", so I supply staff to Y, and but invoice to X. but they deal with my business as my agecny. Deos it concern with IR35 tax rules or personal company service?
thanks

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marcnath
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Re: Contracts problem

Post by marcnath » Tue Sep 05, 2017 8:42 am

QSDanik wrote:
Mon Sep 04, 2017 9:52 pm
Hello Zimba !
its bit complicated! can you see in my situation, For example, I have subcontract from "X" company to supply staff to "Y" company, as "X" is National agency , so to supply staff to "Y" party I have to be on the panel of "X", so I supply staff to Y, and but invoice to X. but they deal with my business as my agecny. Deos it concern with IR35 tax rules or personal company service?
thanks
As long as the staff "supplied" does not include yourself, then it is ok. You can supply your employees in that manner without a problem.

But if you are one of the people who is "supplied" then you are breaking the conditions of your T1E visa
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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