Reply to: Tier2 vs Contractor Limited Company

[northernladuk]

Well thanks for that Lisa, having a foreign missus I did a lot of research on this sort of thing and I want you to help me. There are 'Umbrella' companies out there actively saying they do this - basically reassign the contract and we get a tier 2 for u - the immigration lawyers I've dealt with don't see a problem with it - based on what I just said, ie they take the role and employ the person on tier 2 to do it - is it legal?

Bearing in mind the service an Umbrella offers and they do not control the actual work done I would be horrified if companies providing temporary or intermediatry services like this could sponsor people. Open book to bring anyone they want in surely? I could possibly see how a lawyer may not see it being illegal it would most definately be an artificial arrangement so breaking the spirit of the law and will come under scrutiny once the right people are made aware or public outcry is loud enough. I most certainly would not want to be involved with something like this should it be investigated. The fall out could destroy your family.. but I guess in many cases the people looking for devious techniques like this to come in have little to lose anyway.

[LisaContractorUmbrella]

Well thanks for that Lisa, having a foreign missus I did a lot of research on this sort of thing and I want you to help me. There are 'Umbrella' companies out there actively saying they do this - basically reassign the contract and we get a tier 2 for u - the immigration lawyers I've dealt with don't see a problem with it - based on what I just said, ie they take the role and employ the person on tier 2 to do it - is it legal?

We looked into it quite extensively Stek and although some companies are using back to back contracts and mirrored schedules I was not convinced that this was working within the letter of the law and didn't really want to have to face the consequences of getting it wrong. You have to have a licence to sponsor (list here http://www.ukba.homeoffice.gov.uk/si...sterofsponsors - have just had a quick look as I know of one umbrella company which says they offer the service but their name is not on there so I am not really sure what conclusions we can draw from that

[stek]

Nope - umbrella companies cannot sponsor visas - has to be the company for whom the individual will actually be working

Well thanks for that Lisa, having a foreign missus I did a lot of research on this sort of thing and I want you to help me. There are 'Umbrella' companies out there actively saying they do this - basically reassign the contract and we get a tier 2 for u - the immigration lawyers I've dealt with don't see a problem with it - based on what I just said, ie they take the role and employ the person on tier 2 to do it - is it legal?

[LisaContractorUmbrella]

Hi Asisko

If I were you I would start with an umbrella company as they can do everything for you. You can always move to a ltd co later. With a limited company, it took me few weeks to get a business bank account set up, plus you will need to find a decent accountant. It is easier to start with an umbrella - in my opinion.

Nope - umbrella companies cannot sponsor visas - has to be the company for whom the individual will actually be working

[Support Monkey]

Merhaba Asisko

[northernladuk]

Named after an esteemed gentleman from our forums... I introduce Mr Bob Shawadiwadi

Bob Shawadiwadi

[stek]

Have no clue what Bobable means ! Thanks all for your response

Easily done by cheap Indian's off-shore - for some reason we call Indian outsourcers 'Bobs' here.....

Should have said '....but if your good...' ie it shouldn't matter, perception being Bobs are not very good.....

[fckvwls]

Have no clue what Bobable means ! Thanks all for your response

He is implying that your skills could easily be replaced by a cheaper offshore resource unless you have some very niche or stand out skills.

[asisko]

Have no clue what Bobable means ! Thanks all for your response

[stek]

Tier2 vs Contractor Limited Company

I am a senior software engineer. Expert in java and related technologies, Front-end design and business analysis.

Have 6+ years experience, mostly in telecommunication sector.

Bobable skills, might struggle if you're good........

[asisko]

I am a senior software engineer. Expert in java and related technologies, Front-end design and business analysis.

Have 6+ years experience, mostly in telecommunication sector.

[stek]

I understand, it is legal for me to bill the agency for my service and the agency will be billing the client. Or if I get the contract without an agency, I will be billing the client. Is that right ? Thanks again ?

Yes, both correct but bear in mind it can take a while to secure that illusive first contract, especially now, perhaps if you divulged your skill set we can advise.....

[asisko]

Thanks everyone

As Turkish national, I will be able to setup my company under ECAA agreement. I will initially have 12 months visa. With this visa it is possible to build a ‘one man’ contracting business. But you must work on the business full time and you cannot take any employment that is not directly related to the business. After first successful year of business, the visa will be extended for 3 years.

I understand, it is legal for me to bill the agency for my service and the agency will be billing the client. Or if I get the contract without an agency, I will be billing the client. Is that right ? Thanks again ?

[stek]

Hi Asisko

If I were you I would start with an umbrella company as they can do everything for you. You can always move to a ltd co later. With a limited company, it took me few weeks to get a business bank account set up, plus you will need to find a decent accountant. It is easier to start with an umbrella - in my opinion.

But the OP doesn't have the right to yet on the face if his post....

[AnnaO]

Hi Asisko

If I were you I would start with an umbrella company as they can do everything for you. You can always move to a ltd co later. With a limited company, it took me few weeks to get a business bank account set up, plus you will need to find a decent accountant. It is easier to start with an umbrella - in my opinion.