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Contract job and Tier 2 visa via umbrella company

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    Contract job and Tier 2 visa via umbrella company

    Hi all,

    Some time ago I was contacted by a UK recruiting agency with a job in London at company XXX, contract Y months.
    I've just passed an interview. However, I don't have a work permit and I live in non-EU country.
    The recruiting agency is going to open a PSC for me and work via umbrella company.

    This implies that I am supposed to be self-employed working via umbrella.

    Is it legal? Any pitfalls, details are welcome.

    Thanks in advance.
    Last edited by voodoo; 29 September 2014, 17:32.

    #2
    Visa sponsorship should be from the company for whom you will actually be working - as an umbrella company is an intermediary they should not technically be in a position to sponsor a visa
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    Comment


      #3
      Not Everyone Plays by the Rules

      I agree with Lisa, the rules as you read them prevent anyone from sponsoring a worker who then supply them to a third party. Both Recruitment Agencies and Umbrella Companies, even a PSC fall within this category. However, not everyone plays by the rules and it seems that for enough cash the Border Agency will allow certain Recruitment Agencies and Umbrella Companies to self certify.

      It smacks of one rule for one and one rule for the rest.

      Comment


        #4
        Have you got a link to more information on this International Advisor?
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        Comment


          #5
          Originally posted by LisaContractorUmbrella View Post
          Visa sponsorship should be from the company for whom you will actually be working - as an umbrella company is an intermediary they should not technically be in a position to sponsor a visa
          Correct.
          Last edited by voodoo; 29 September 2014, 17:30.

          Comment


            #6
            Poses More Questions than Answers

            Hi Voodoo

            So the agency are the Tier 2 sponsor who and you are now going to operate through a Limited Company which is set up by the agency.

            This does not look right......

            Comment


              #7
              Premium Customer Service Scheme

              Originally posted by LisaContractorUmbrella View Post
              Have you got a link to more information on this International Advisor?
              It looks as if Voodoo has found one himself.

              Comment


                #8
                Originally posted by voodoo View Post
                Correct, the agency is going to be my employer and it is a licensed tier 2 sponsor. AFAIK Umbrella is a limited company to be created by them.
                In which case I see no need or justification for the umbrella company, other than someone playing fast and loose with taxation law...

                I may be wrong but the only way a Tier 2 can work is for the company that holds the visa, although obviously that work can be for the agency's clients. The umbrella serves no purpose since you have to be paid by the agency as an employee.
                Blog? What blog...?

                Comment


                  #9
                  Direct Relationship

                  Originally posted by malvolio View Post
                  In which case I see no need or justification for the umbrella company, other than someone playing fast and loose with taxation law...

                  I may be wrong but the only way a Tier 2 can work is for the company that holds the visa, although obviously that work can be for the agency's clients. The umbrella serves no purpose since you have to be paid by the agency as an employee.
                  Nearly right, what is missed out is that a Tier 2 can normally be granted to the person who "utilises the workers labour (end User Client)" and cannot be sponsored by someone who recruits the worker to be hired on to the end user client.

                  This means that no agency should be able to sponsor a Tier 2 and the same applies to an Umbrella Company.

                  What is worse in Voodoo's case it looks as if they are now setting up a PSC for him?

                  Comment


                    #10
                    Originally posted by International Adviser View Post
                    Nearly right, what is missed out is that a Tier 2 can normally be granted to the person who "utilises the workers labour (end User Client)" and cannot be sponsored by someone who recruits the worker to be hired on to the end user client.

                    This means that no agency should be able to sponsor a Tier 2 and the same applies to an Umbrella Company.

                    What is worse in Voodoo's case it looks as if they are now setting up a PSC for him?
                    Thanks, I stand corrected.

                    However I still fail to understand why the umbrella/PSC would be needed for an employee...
                    Blog? What blog...?

                    Comment

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