Home Office clamps down on Tier 1 (Entrepreneur) visa scams
The Home Office has outlined its plans to clamp down on students who fraudulently switch to entrepreneurial visas without the intention of starting a business. As part of the crackdown, students will now only be able to switch their visa status using funds from a government-approved source.
John Dunn ● Sep 9, 2014
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What is the UK's Tier 1 visa?
The Tier 1 (Entrepreneur) visa was intended to enable migrants to start businesses in the UK, creating jobs and spurring economic growth in the process. The visa grants the holder three years’ leave, and – if the business generates two full-time jobs and maintains strict tax records – may lead to Indefinite Leave to Remain (ILR) in the UK.
Tier 1 visa requirements
Migrants from outside the European Economic Area (EEA) and Switzerland typically apply for the Tier 1 (Entrepreneur) visa if they:
- can demonstrate their intentions to set up or take over a business in the UK
- have access to a minimum of £200,000 in investment funds
- meet the other eligibility requirements
Who has been misusing the Tier 1 visa?
Since opening, the visa has been used successfully by many people from around the world, including South Africa, India, Australia and the USA. But recent statistics show that a number of students have been using the entrepreneurial visa as a back-door way to stay in the country long after they have finished studying – a situation that has increased in prevalence since the post-study work visa was dropped in 2012. As an example, some migrants have switched from a student visa to an entrepreneurial visa under the pretences of starting a business, when in reality they are working low-paid jobs on the sly.
Although the Home Office will be chasing up on guilty parties (especially the alleged criminal groups involved in these scams), the announcement shouldn’t act as a deterrent to genuine entrepreneurs who intend to apply via this route. The Home Office is adamant that anyone who genuinely plans to start a business in the UK shouldn’t be worried about the government’s restrictions; if you can provide evidence of your business activities and fulfil the requirements of the visa, there’s no reason for you to face any additional bureaucracy.