Kim Day | Senior Immigration Adviser

Can I be self-employed on a Tier 2 General / Skilled Worker Visa?

30/09/2024

We are frequently asked whether it is possible to be self-employed on a Tier 2 General or Skilled Worker visa. The short answer is yes, if you have a licensed sponsor, but the full answer is much more complicated. Allow us to explain this further:

What is the difference between employed and self-employed?

To understand this question, it is important to understand the difference between being employed and being self-employed in the UK. This is what’s known as your employment status, and relates to the rights you have in employment and your obligations under tax laws.

Self-employment usually relates to those who run their own business, instead of those who are employed to work for someone else’s company. However, in certain situations, an individual is self-employed even though they are working for somebody else.

The most important difference is that someone who is self-employed is not paid through PAYE (Pay As You Earn) but pays their tax directly to the UK government through a process called Self Assessment. They also have fewer employment rights and responsibilities.

The simplest way of thinking about this difference is like this:

Employed people are hired under a contract of service; they are under the overall management of the company and are protected by the rights of employ. For example, a receptionist is usually classed as employed because they have to work the hours they are given and have a right to the national minimum wage, holiday pay and other benefits.
Self-employed people agree to a contract for services; they are in control of their own work patterns and output to the conditions agreed by the employer, and because of this independence have less access to worker’s rights. For example, a taxi driver is usually classed as self-employed because they can work whenever they want, but they are not entitled to earn the national minimum wage, receive holiday pay or obtain other employee benefits.

Self-Employment on Tier 2 General / Skilled Worker: Is it possible?

You cannot hold a Tier 2 General / Skilled Worker visa without a sponsor, and the visa is dependant on you working for a particular employer.

You cannot therefore set up your own business instead of or in addition to your main sponsored employment – if you wish to do this you would instead need to apply for an Innovator or Start-up visa, or hold a Tier 1 Entrepreneur or Global Talent visa.

However, it is possible in certain situations to work for a Tier 2 General / Skilled Worker sponsor in a self-employed capacity. Further details on this are found in section S1.32 of the Guidance for sponsors document. This document states the following:

"If the worker is self-employed, there must be a genuine contract for employment/services between you and the worker…"

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Our summary: self-employment and Skilled Worker

You can be self-employed on a Tier 2 General / Skilled Worker visa: as long as an employer sponsors you and issues you with a clear contract listing the work you have been contracted to perform with them.

You then establish a limited company or register as a sole trader and invoice the sponsor for work performed.

The sponsor has their usual responsibility to ensure that you receive at least £26,200 per year, or your role’s minimum salary when relating to the relevant SOC code if this is higher than £26,200. See gov.uk to search for the relevant SOC code.

Here are some examples where self-employment would be allowed on a Tier 2 General /Skilled Worker visa:

Example 1: Dental Associates (Dentists)

A dentist who doesn’t own their own dental practice but instead works in a dental practice owned by somebody else can often legally be employed as an independent contractor. We have dealt with many cases where dentists are technically self-employed, even though they work for the same employer on a regular basis.

This means that their dental practice will need to register as a licensed sponsor and issue them with a Certificate of Sponsorship (CoS) per the SOC code, as well as the genuine contract of employment to further prove the terms of their position. The dentist will remain legally self-employed but will not be in breach of any Tier 2 General / Skilled Worker immigration requirements.

Example 2: Barristers

Most practising barristers in the UK act as independent practitioners and are classified as self-employed.

Like dentists, they will often be employed by a barristers’ chambers and are responsible for their workload based on the amount of individual cases they take.

The Bar Council, a representative body of barristers in the UK, are accredited as Tier 2 General / Skilled Worker Sponsors and are committed to supporting talented non-EEA barristers with their visa applications.

They are able to produce a CoS for qualified barristers in both pupillage and tenancy positions at chambers, where applicants are able to hold a Tier 2 General / Skilled Worker visa in a self-employed position.

Example 3: Private Tutor

Some companies control a large network of employees who are then paid based on the work they fulfil in their role. The employee is technically self-employed but contracted by their employer to complete tuition on their behalf.

In these situations, the employer would need to be a licensed sponsor and issue a Certificate of Sponsorship for the applicant.

If you were looking to work as a private tutor for a company registered with the Home Office as a licensed sponsor, who can guarantee your minimum salary, provide a contract and evidence that you are the only person capable of fulfilling the role, you would be eligible to apply for a Tier 2 General / Skilled Worker visa and undertake this role in a self-employed capacity.

If I’m on a Tier 2 General Visa / Skilled Worker can I take additional self-employed work?

Another question we are often asked is whether those already on Tier 2 General / Skilled Worker visas can also perform additional self-employed work.

This is allowed, provided that the following conditions are met - the work must be:

in an occupation listed in Tables 1, 2 or 3 of Appendix Skilled Occupations https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-skilled-occupations
for no more than 20 hours a week
outside the working hours covered by the CoS

If you are unsure about whether the self-employed or part-time work you are looking to begin on your Tier 2 General / Skilled Worker visa meets these requirements, please do get in contact with us here at White Rose Visas. This is a complex part of immigration law and we would recommend seeking the expertise of our qualified advisers to assess your personal situation.

Are there any other visas designed for self-employment?

As mentioned previously, Innovator and Start-up, as well as the old Tier 1 Entrepreneur, and Global Talent visa visas, are routes designed to allow you to be completely self-employed by establishing and running your own business in the UK.

For individuals looking to be employed in creative or sporting positions, as well as religious or charity workers, the Tier 5 route might be better suited to your situation.

If you are unsure which route you are qualified for or have any further questions regarding self-employment on UK visas, please do get in touch with us using our contact information below.