The UK Home Office is tightening its rules for those wanting to apply for Tier 1, or “Entrepreneur” Visas. The Government maintains that it is necessary to do this because the current system is being abused, as well as being targetted by criminal gangs. Genuine High Net Worth applicants (HNWIs), though, should have nothing to worry about; indeed, they may even stand to gain from the changes.
The situation has become much more serious since the “post-study work visa” was abolished in 2012. Under the old system, foreigners who had studied in the UK could apply for a visa to stay on and look for work. If they found employment appropriate to their qualifications they were allowed to remain for longer than a year; and if they maintained that situation they could be granted permanent leave to remain in the UK after five years in the country.
The Home Office has concluded, though, that there is a direct link between the scrapping of that system and the dramatic rise in applications for the Entrepreneur Visa. In 2009, there were just 118 applications for the Entrepreneur Visa. Last year there were just under 10,000.
To be eligible for the Entrepreneur Visa, the applicant must indicate that they are setting up their own business, not being employed by someone else – even part-time. They must show that they have access to £50,000 (for “post-study work visa” holders), held in a UK bank (or banks), and that these funds are accessible and can be spent by them if necessary on their business. They also have to demonstrate a sufficient knowledge of the English language; that they are able to support themselves while they are in the UK; and they must be at least 16 years of age (it is illegal for under-16s to be engaged in full-time employment in the UK, in any case).
The Home Office was alerted to a potential problem when Immigration officials compared their files with tax records which showed that many of the supposed “entrepreneurs” had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.
Furthermore, it has come to light that in some cases criminal gangs have been “lending” applicants the necessary £50,000 to indicate that they have the seed capital, before claiming it back after the Visa is granted – with significant interest, of course.
The Immigration and Security Minister, James Brokenshire, said that the Government, “is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.” He added, “With the new clampdown students will only be able to switch using funds from a government-approved source, and post-study workers will need additional evidence of their business activities. In addition, those who have not yet started businesses and who do not have evidence of a genuine business will not be able to switch from the old post-study route onto an entrepreneur visa.”
But there is good news for HNWIs wishing to obtain an Entrepreneur Visa for the UK. As part of the changes, there is to be a new “VIP” service to make it easier and quicker for wealthy applicants to receive their visa. Initially, around 100 HNWIs are to be invited to join the scheme, under which they will have their own “account manager” at the Home Office to cater for their travel needs. And in a radical new move, those from India and China will even be able to obtain their visa on the same day they apply.
