Free news, bulletins and essential information for foreign nationals working as contractors in the UK.

IT Contractor work permit/visa options

If you are interested in working as a contractor in the UK but do not hold an EU passport, you need to know

what UK work visa options exist. Here is a useful summary of the 4 key options:

Tier 1 (General Highly Skilled Migrant)

 Overview: The most relevant category of the new Tier 1 points based system for contractors is the General Highly Skilled Migrant sub category which replaces the former HSMP (Highly Skilled Migrant Programme) visa. To qualify for the visa an individual must gain 75 points from 4 categories (Qualifications, Age, Previous Earnings and UK Experience) plus they must satisfy the English language and Maintenance requirements to achieve a total of 95 points. Once approved, an individual can work freely in the UK for a period of up to 5 years (initial 3 years plus 2 years extension). For more information and a free assessment of your case please click here.  Contracting Options: The Tier 1 Visa is the best option for individuals wishing to develop an independent contracting career in the UK as no 3rd party sponsorship is required and the holder is free to choose his own clients and options. Tier 1 visa holders can take advantage of a regular UK umbrella company's options in exactly the same way as a UK contractor to deal with contract income. However a Limited Company may not be the best option for those wishing to extend the visa as those using Ltd Companies often remunerate themselves with low salaries of under £12k pa in order to maximize profit distribution. This income structuring can cause problems when proving Income under the previous earnings scoring category and this factor must be taken into account. 

Tier 2 Work Permit (Certificate of Sponsorship)

 Overview: The Tier 2 CoS (Certificate of Sponsorship) has replaced the former Work Permit visa. The Tier 2 sponsored visa is issued by a specific employer for a specific employee. A CoS is an Immigration approval that allows a UK employer to recruit a named non EEA national to do a specific job where unable to find a suitable 'resident worker'. It is not possible for an individual to make a CoS application.  Contracting Options: High level workers (Telecoms, Engineering, IT, Finance) who wish to work in a contracting environment but do not meet the Tier 1 requirements should consider a consultancy sponsored Tier 2 visa. These are generally appropriate for project based assignments. WPC can introduce potential contractors to consultancies that operate established, Home Office compliant structures specifically for this purpose. This is a useful option whilst working towards gaining Indefinite Leave to Remain (ILR) at which time the consultant can become genuinely freelance without the need for a sponsor. Please contact the team to discuss your individual case.

 

 

Youth Mobility Scheme (YMS)

 

Overview: YMS Visas are for certain citizens (Australia, New Zealand, Canada and Japan) aged between 17 and 30 who are looking to work in the UK on a short term basis. Once approved the visa allows the individual to work and/or travel in the UK for a period of up to 2 years. Contracting Options: Those holding YMS Visas can use Umbrella Companies or Contractor Limited Companies to deal with contract income, however Australians should be aware that dividend income taken from a Limited Company may be taxable by the ATO.

 

 

Ancestry Visa

 

Overview: Citizens of a Commonwealth country with a grandparent born in the UK (including the Channel Islands and Isle of Man) may be eligible for an Ancestry Visa. Those who qualify can work in the UK for up to 5 years without restriction after which time they may apply for Indefinite Leave to Remain. Contracting Options: Those holding Ancestry Visas can use Umbrella Companies or Contractor Limited Companies to deal with contract income. Holders of Ancestry Visas are not restricted in any way.