New Tier 1 ( Entrepreneur ) visa rules from 11 July 2014: our summary.

By 1st 4Immigration - #1 UK Immigration Experts -
There are 3 types in this posting: general, for those who are switching from Post-Study Work visas and some clarifications which are  not new but tend to be confusing.
Please note: this is a simplified summary. For a detailed advice please book our advice session, which can be either over email or at our office in the City: info@1st4immigration.com
GENERAL (applicable to all):
1)     No more contract work for Tier 1 Entrepreneur visa holders.  Until 11 July 2014 the Immigration Rules were not preventing the migrants from working as contractors. For example, getting an Entrepreneur visa, setting up a ‘business’ while in reality working for a company (‘employer’)  in all but name. This has been changed in the current Rules. The Tier 1 Entrepreneur category was designed for those who want to be a ‘real entrepreneur’ and to run a genuine business. For more on this please read our earlier posting “No more contract work for Tier 1 Entrepreneur visa holders”.
2)     English language: popular tests TOEIC and TOEFL are no longer accepted (for applications from outside the UK they won’t be accepted from 22 July 2014).
3)     We were asked whether it is still allowed to be a sole trader or whether it is compulsory to register a limited company. This has not changed, either way is OK as well as switching between them.
(The Guidance refers to ‘your business’ having to be a limited company when the applicant provides evidence of the funds available to his/her business and not to him/her personally.)
SWITCHING FROM POST-STUDY WORK VISAS:
There are not many migrants left with a valid Tier 1 (Post-Study Work) visa, which was closed in April 2012 and which was issued for 2 years. So, at this point in time (July 2014) a limited number of PSW visa holders left because those who applied by post in 2012 had to wait for months to have a decision.

1)      The main change is that on 11 July 2014 you have to have already registered your business in the UK and actively trading in an occupation at NQF Level 4 or above. This has to be proved with evidence of registration from HMRC or Companies House, plus with a contract for service (other than contracting work) dated before 11 July 2014 and with an advert also dated before 11 July 2014. You may use some other specified evidence for a proof but the logical remains the same: the Home Office wants to see you were already in business before 11 July 2014. If you don’t meet this requirement you can only apply for an Entrepreneur visa outside the UK and with £200,000. Or you can switch inside the UK with £50,000 from a UK Government Department or a listed seed funding competition (but not from a Venture Capital firm).

2)      One of the specified evidence if a contract for service, to prove the core services of the business is at NQF Level 4 minimum. Here is an addition of a requirement to have the duration of the period of provision of the services mentioned in the contract.

NOT NEW BUT WORTH CLARIFYING:
1)     Investment of £200,000 or £50,000 does NOT include paying yourself, such as drawing a director’s salary, or investment in property, including buying property, property development and property management (but it’s OK to invest in a construction company). Instead it has to be a fresh investment for the growing of the business, so if you need to pay yourself you have to budget for extra money in addition to these funds.

2)     Money which is owned by a spouse or a partner (for a definition of a ‘partner’ please contact us,  it is about a life partner, not a business partner), can be used for an initial Tier 1 (Entrepreneur) visa but will be considered as evidence from the third party. Therefore, you’d need a declaration from him/her and the other documents listed in the Rules. In short, even a spouse/partner is considered as a third party. The only exception where you can use the money without a declaration is if you have a joint account and therefore, you have as much access to that money as your spouse/partner does.

3)     Money owned by other family members (other than by a spouse or a life partner), such as parents or adult children, is always considered as money from the third party.

4)     The main applicant, once he/she has an Entrepreneur visa, can only work for him/her business (and can’t do the contracting work). However, dependants, such as a spouse, can work for any company as long as the main visa holder complies with the Entrepreneur visa rules.

5)     Creating jobs: at the extension stage after 3 years, an Entrepreneur visa holder has to show his/her business has created 2 new jobs which lasted for 1 year. These have to be for settled workers and not for the fellow migrants or family members on dependent visas.  
For an individual advice or to make an application please contact us: info@1st4immigration.com or visit www.1st4immigration.com
If you are an Immigration Adviser or a Solicitor please visit our immigration Training and CPD website: www.1st4immigration.com/training

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