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How possible is it for a tier 2 Migrant can Start up a Business.



One of the common questions from tier 2 migrants is whether they can start up a company. The answer is, it depends. The tier 2 general migration visa allows foreign citizens (from outside of the EEA) to live and work in the UK for a sponsor licence holding employer. But after some time, the migrant may wish to start up a business on their own. In this article, we look at the possibilities of doing so.

Self-employment for tier 2 migrants

In essence, a tier 2 migrant will need to always remain employed by a sponsor licence holding employer in order to maintain their status. But there are possibilities outside of this. As long as you run the business for fewer than 20 hours per week and it is in the same category as the business they already work in.

This potential for flexibility allows for the possibility of starting up on your own in a business similar to the one that you already work in. This is useful as you will already have the prerequisite knowledge to be effective in the space and the skills to perform highly.

Tax for self-employment

If you are setting up on your own then you will be required to fill out a tax return. Filling out a tax return and paying all appropriate taxes will ensure that you stay compliant and are less likely to encounter legal issues with your outside employment.

Tax returns are normally for the 12 months between the 6th of April one year to the 5th of April the next and you will be given reasonable time to return it. The government has refined the process of tax returns over the last few years and you can now file easily via their website if you have all of the right information. It is vital that you keep all of your receipts for the business and include the wages and tax paid in your usual employment in order for HMRC to correctly calculate your tax liability.

Registering for self-assessment

You will be required to register for self-assessment as soon as you begin to start trading. It is imperative that you stick to the rules of your tier 2 visa and the laws regarding taxation in order to remain compliant. The complications of being on a tier 2 visa and self-employed mean that your specific case may be looked at in greater detail.

Conclusion

In conclusion, working for yourself is a great option even on a tier 2 visa; but you will need to be careful to ensure compliance and that the 2nd job is related to the main job.

How we can help

If you have any queries related to tier 2 visas or any other immigration issue then get in touch. Our experience and knowledge mean that we can help in all manner of circumstances, so give us a call today to see what we can do for you.

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Kind regards
Nancy Jacquard


 
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