Tier 1 (Entrepreneur) visa: Why am I refused for having a contract with a recruitment agency?

We are having clients coming to us following a refusal of their Tier 1 (Entrepreneur) application when switching from Post-Study Work visa inside the UK. Such an application requires the applicant to be in business already, such as having a limited company which is active.
The problem is that many applicants are working as contractors, basically as employees in all but name (just self-employed on paper, even with a limited company). Also, in many cases the applicant’s limited company has a contract with a recruitment agency, which in turn places the ‘worker’ (the self-employed contractors) to the companies like Ford or to banks or IT companies.
The reason why such applications are being refused – and refused correctly -  is the change in the Entrepreneur visa rules on 11 July 2014. Working as a contractor, ie merely filling what is really an employment vacancy presented as self-employment, is no longer allowed under the Entrepreneur visa category. It is a category for genuine business people, entrepreneurs who are running – or planning to run where applicable – a business. A business with independent clients (not 1 ‘client’ who they work full-time for), a business which will be creating jobs (at least 2) and which from the common sense point of view is an enterprise with all the risks and benefits which come from being your own boss.
Worth reminding that this restriction on contract work applies to all migrants who hold a Tier 1 (Entrepreneur) visa, including to those who did not have to have an active business when applying for an initial visa. When the time comes to apply for an extension after 3 years (or for an ILR in the accelerated route) every applicant will be required to show they had established a business in the UK. That business cannot be the type which merely provides an owner/director/contractor or owners/directors/contractors to work for the companies in what is employment in all but name.
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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