Question re financial requirements for contractors
Jun 17th 2014, 9:44 am
#1
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Question re financial requirements for contractors
Hi,
Reading the financial requirements guidance document on "5.2.3. Case studies – Category A: With current employer for 6 months or more – overseas sponsor returning to the UK". Am I right in interpreting it as you need to have a job offer in a non-salaried case that would accrue the right amount over the period of the initial contract? For example if you were offered a 6 month IT contract but the total value of the contract would only gross £18300 for example (6mnths at £150 per day), would you qualify? Technically you are £300 short, but in a year (if the contract was extended, or you got another one) you would earn £36600 for the year at that rate. The same would apply for a 3 month contract valued at £18000. A lot of well-paid IT contracts for example are short term, but companies often roll the contract or the contractor secures multiple short term contracts in a year. For this exercise though would securing a short term contract that does not quite cover the required amount be sufficient, i.e. will they work it on a pro-rata basis based on the fact that you are indeed capable of earning the amount and are unlikely to claim benefits, or would you need to ensure your initial contract on entry will pay at least £18600 over the length of the contract?
regards
Reading the financial requirements guidance document on "5.2.3. Case studies – Category A: With current employer for 6 months or more – overseas sponsor returning to the UK". Am I right in interpreting it as you need to have a job offer in a non-salaried case that would accrue the right amount over the period of the initial contract? For example if you were offered a 6 month IT contract but the total value of the contract would only gross £18300 for example (6mnths at £150 per day), would you qualify? Technically you are £300 short, but in a year (if the contract was extended, or you got another one) you would earn £36600 for the year at that rate. The same would apply for a 3 month contract valued at £18000. A lot of well-paid IT contracts for example are short term, but companies often roll the contract or the contractor secures multiple short term contracts in a year. For this exercise though would securing a short term contract that does not quite cover the required amount be sufficient, i.e. will they work it on a pro-rata basis based on the fact that you are indeed capable of earning the amount and are unlikely to claim benefits, or would you need to ensure your initial contract on entry will pay at least £18600 over the length of the contract?
regards
Jun 17th 2014, 3:44 pm
#2
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Joined: Feb 2012
Posts: 837
Re: Question re financial requirements for contractors
Sadly - I don't think there is a route which allows you to return to self-employment.
In the document you are referencing (this one?: https://www.gov.uk/government/upload...e_20140324.pdf) examples a,b & d talk about returning to salaried employment. Example c to non-salaried employment - that is not the same as a self-employed contractor.
I've had another read through paragraphs 13-18 of the rules (appendix FM-SE) which is the bit that regulates the calculations of income and can nowhere find anything allowing you to return to self-employment even with a pre-agreed contract.
In the document you are referencing (this one?: https://www.gov.uk/government/upload...e_20140324.pdf) examples a,b & d talk about returning to salaried employment. Example c to non-salaried employment - that is not the same as a self-employed contractor.
I've had another read through paragraphs 13-18 of the rules (appendix FM-SE) which is the bit that regulates the calculations of income and can nowhere find anything allowing you to return to self-employment even with a pre-agreed contract.
