Tier 1 Visa Extension: Umbrella Company ImplicationsVisa

[aussiecontractor]

Hi All,

I am about to delve into the contracting space and have a visa renewal coming up in June 2012.

I have been doing a lot of research on Ltd Company vs Umbrella etc and this site has been extremely helpful,r but my real questions come down to umbrella companies and the renewal of my visa.
vi
I would be very grateful if you could share you experiences on the following:

1) Extending your tier 1 sa (or any visa) while using an umbrella company. i.e. what company did you go though? did you have any issues with HMRC?

2) Has anyone had experiences of extending visas while using an "off shore" umbrella (often considered dodgy?!) was your visa approved/denied?

3) ANy horror stories/happy endings going though an umbrella and renewing your visa?

4) Any general advice for someone looking for an umbrella company with an impending visa renewal.

Any feedback would be greatly appreciated!!

thanks

[Jet Setter]

Hi All,

I am about to delve into the contracting space and have a visa renewal coming up in June 2012.

I have been doing a lot of research on Ltd Company vs Umbrella etc and this site has been extremely helpful,r but my real questions come down to umbrella companies and the renewal of my visa.
vi
I would be very grateful if you could share you experiences on the following:

1) Extending your tier 1 sa (or any visa) while using an umbrella company. i.e. what company did you go though? did you have any issues with HMRC?

2) Has anyone had experiences of extending visas while using an "off shore" umbrella (often considered dodgy?!) was your visa approved/denied?

3) ANy horror stories/happy endings going though an umbrella and renewing your visa?

4) Any general advice for someone looking for an umbrella company with an impending visa renewal.

Any feedback would be greatly appreciated!!

thanks

With an standard umbrella you should have no issues because the payments you're receiving are for the most part straight PAYE. The most important thing with your visa is to ensure that you've met the income requirement with ordinary PAYE. Dividends can be acceptable, loans or anything else are very risky from a visa perspective.

Bottom line is you need to make it as simple as possible for them to give you your extension. If they make a mistake and reject you, even if it's their error, you still have to pay a second time to reapply. Straight PAYE via an employer (even if this an umbrella) is the best way to make this happen.

Any standard umbrella should be the same. Just check they're sharp on giving you access to documentation when you need it.

[Kylie]

Hi All,

I am about to delve into the contracting space and have a visa renewal coming up in June 2012.

I have been doing a lot of research on Ltd Company vs Umbrella etc and this site has been extremely helpful,r but my real questions come down to umbrella companies and the renewal of my visa.
vi
I would be very grateful if you could share you experiences on the following:

1) Extending your tier 1 sa (or any visa) while using an umbrella company. i.e. what company did you go though? did you have any issues with HMRC?

2) Has anyone had experiences of extending visas while using an "off shore" umbrella (often considered dodgy?!) was your visa approved/denied?

3) ANy horror stories/happy endings going though an umbrella and renewing your visa?

4) Any general advice for someone looking for an umbrella company with an impending visa renewal.

Any feedback would be greatly appreciated!!

thanks

I've renewed a HSMP (old Tier 1) using an Umbrella Company, and a Tier 1 using a Limited Company. Both were successful first time.

Umbrella Company I used an agent, with the Limited application I did it myself.

Last time was Jan-10 though, so it may well have changed - but there is usually so much information in the guidance notes that it's hard to go wrong. Also check out Immigration Boards (Forum) as there are usually heaps of people in a similar boat.

Limited Company is a breeze - Umbrella Company is still do-able, but a little bit more detail required, but still clearly outlined in the guidance. I would avoid off-shore/loans/dodgy completely!

Both times I applied with Salary + Dividends, so I would question the above poster who said it makes it more difficult, I don't agree.

Also, if they make a mistake, you have 1 right to challenge, but can't submit any new evidence, only refer to the documentation you've submitted. So if it's their mistake - you can challenge it.

Hope this helps.

[anilmanu]

I switched from a Tier1 PSW to Tier1 General using an umbrella company in Sep 2010
Was straight forward.

[LisaContractorUmbrella]

There should be no problem working through an umbrella company with a tier 1 visa

[rd409]

ianal. working under umbrella is like being fully employed. working through ltd is also similar to being fully employed with your income coming as only salary in the first case and salary + dividends in the later.

ukba does not take into consideration investments, but dividend can be classed as income.

hth.

[anilmanu]

I need to apply for a teier1 extension this year
A question on the dividends and earnings

- Do I have to be the sole shareholder to claim dividends as my earnings?

[eek]

I need to apply for a teier1 extension this year
A question on the dividends and earnings

- Do I have to be the sole shareholder to claim dividends as my earnings?

I'll save NLUK doing the needful. If you look at the list of links to the right of this page there is plenty of information available.

You don't need to be the sole shareholder however as you need to meet a minimum income level dual shareholders may be a problem.

[rd409]

I need to apply for a teier1 extension this year
A question on the dividends and earnings

- Do I have to be the sole shareholder to claim dividends as my earnings?

Your income = your salary + your dividend.

Your dividend will depend on the shareholding. If you are 50% shareholder, and the company issued a dividend of 20k per shareholder, then your income will only be salary + 20k. You cannot claim your partner's share of dividend as your income.

I guess UKBA website has this information quite in detail. Also if you want further information, go to Immigrationboards.com :: Index

hth.
Dave.

[isabelhunt]

I have a friend who went with an umbrella company who was able to get him a sponsor and was able to switch from tier2 ICT to tier 2 general in just 2 weeks. Went without any glitches.