Can I set up a business as a Skilled worker? – A guide to supplementary work and self-employment
One the most common enquiries we receive from those already in the UK is:
“Can I set up a business while here as a Tier 2/Skilled worker?”
The short answer to this question is that it is possible but requires very careful consideration. You can start a company while working for another, but you must ensure that you meet the rules of supplementary or secondary employment and ensure to check your employment contract for any restrictions on side businesses or conflicts of interest.
The long answer on whether you can set up a business as a Skilled Worker:
While here as a Skilled worker you are subject to the following visa restrictions:
(a) “[…]
(b) work is permitted only in the job the applicant is being sponsored for, subject to (c) to (e); and
(c) supplementary employment is permitted, providing the person continues to work in the job for which they are being sponsored (and where the supplementary employment takes place during the 4-month period after the end date of their certificate of sponsorship referred to in SW 18.1A the requirement to continue to work for the sponsor will not apply); and
(d) voluntary work is permitted; and
(e) working out a contractual notice period is permitted, for a job the applicant was lawfully working in on the date of application; and “[…]”
The relevant section to look at above when considering the legality of setting up your own business is (c). We then need to understand what is meant by the phrase “supplementary employment”.
Home Office guidance defines supplementary work as meeting all the following requirements:
- in an occupation listed in Tables 1, 2 or 3 of Appendix Skilled Occupations (RQF 6 occupations)
- in an occupation listed in Tables 1a, 2aa or 3a of Appendix Skilled Occupations provided they have had continuous permission as a Skilled worker under the rules in place before 22 July 2025 (RQF 3-5 occupations)
- no more than 20 hours a week
- outside the working hours covered by the CoS
If the supplementary work meets the above requirements, you do not need to inform the Home Office before taking on the extra work.
Let’s take each of these step by step.
Occupation code
From April 2024, there has been a departure of the types of occupation code you can work in. Previously you were required to work in either the same occupation code you were sponsored to work in, or a shortage occupation code.
At the time of writing, you can now work in any occupation code, provided that it would otherwise be eligible for sponsorship, and this newer condition applies to anyone with existing Skilled Worker permission, regardless of their grant date.
This negates one of the previous issues which was that undertaking work as a director of a company would almost always be work outside of your main occupation code (unless you were sponsored as a director).
20 hours per week
The other major problem here is working 20 hours per week. When working for another this, along with the occupation code, are very easy to prove. You will have a set number of hours, an employment contract, and your pay and payslip will reflect this.
When establishing your own business, then, this becomes much harder to prove, and you would need accurate time recording systems in place to show that you have stayed within the 20 hours per week limit. You also need to be careful that you understand what would be included in these 20 hours which is essentially anything.
If you pick up an email for five minutes in the evening? This counts. If you make a quick phone call to resolve an urgent matter? This counts. Are you an educator planning lessons? This counts. Over time these small actions can add up into a considerable amount of time spent and could tip you over the edge of 20 hours without you realising.
If the Home Office were to challenge you, it would be very hard to provide evidence that you have complied with the rules. With proper representation you may be able to defend your position, but this would both be costly and create a great deal of stress on your own personal position.
Given the consequence of the Home Office deciding you have breached the rules being the loss of your status in the UK and a potential ban on returning, the question we often put to clients is whether it is worth going down that path vs waiting until you have reached settlement.
Provided that you are legitimately staying on the right side of the rules, this is ultimately a personal and not a legal decision but an important one to consider.
Outside the working hours covered by the CoS
The supplementary employment can only take place outside of your day-to-day employment. This is less of a direct conflict with establishing a business but is still something to consider as a risk. Anything you do while during your office hours will constitute a breach of this requirement. As with the 20-hour limit, this would include actions such as sending emails, making calls etc.
Self-employment vs establishing a company
There is a distinction between setting up a company and being self-employed. As set out above, our view is very much that setting up your own company is technically possible but creates a very significant risk from the standpoint of evidencing you are working within the boundaries of 20 hours per week.
Pure self-employment is similar in that it is not black and white, but our advice remains not to do it. There is no explicit ban on self-employment as a Skilled worker, but it is still extremely difficult to prove that you are remaining within the 20-hour limit of work undertaken per week.
For that reason, we still strongly advise clients not to take the risk.
A note on curtailment
Supplementary employment is conditional on you continuing in the job you are sponsored to do. Therefore, if you resign from your role or you leave the job in the other way (such as redundancy or dismissal), you lose the right to undertake supplementary employment.
This is a common issue faced by those who have had their visas curtailed or are expecting curtailment. While this is a difficult situation to find yourself in, it is important that you do not take further employment until you have been sponsored by a new employer and received your new visa, otherwise you will find yourself in breach of the immigration rules which will only cause greater issues.
There is a very specific exemption to this requirement for GP trainees who are currently in the 4-month window after their training finishes. These workers can undertake supplementary employment, despite no longer being in the role they were sponsored to fill.
A note on ‘side hustles’
A related query we receive often is people who work in more conventional roles wanting to make income of side hustles in areas where they have a passion.
Some real-life examples we’ve seen of this are medical professionals looking to set up Etsy stores to sell their arts or craftwork, office workers who want to monetise their Twitch streams or YouTube channels, and teachers wanting to make money off music they have created as a solo artist or in a band.
This is much more likely to be acceptable under the new rules, but again you will need to remain conscious over how to prove that all of the work involved fits into 20 hours per week.
Exceeding 20 hours
If the additional work you wish to do is not in an eligible occupation code, or your supplementary employment will exceed 20 hours, you should apply for secondaryemployment before you pass the threshold.
For secondary employment, you must:
- Secure a CoS from a second employer (which can also be your own company).
- Submit a variation of permission application (this is a new Skilled Worker application that keeps your first CoS active).
- You must have ‘used’ your first CoS and started work for your first sponsor prior to assigning a second CoS.
You will have two sponsors during the overlap. Your approval letter, which lists both, serves as your proof of right to work and should be kept with your eVisa.
It is important to note that self-sponsorship is monitored and heavily scrutinised by the Home Office, as they want to ensure that your position is a ‘genuine vacancy’ and was not created only to facilitate your stay in the UK.
Advice on your Skilled Worker Visa
As you will see from this article, in many cases it is not going to be appropriate to set up a business while in the UK as a skilled worker.
If you are establishing a business as a group, or you feel your circumstances fit into these exceptions, please get in touch with a member of our team and we can provide you with a quote for a package including:
- advice for the processes that need to be implemented in the new business to ensure compliance
- advice for the evidence that the business should retain to protect your position if you were challenged by the home office.
The Home Office may investigate this and could cancel your visa if they believe you are breaching immigration rules. They will check for evidence of self-employment and may question if you have fulfilled your primary job duties.
How can OTB Legal help you?
Setting up a business in the UK while on a Skilled Worker visa requires careful planning and consideration. Our highly experienced solicitors and legal advisors provide clear, practical guidance to help you explore your options and choose the best path forward, all while ensuring you remain fully compliant with UK immigration rules.
If you have questions or need assistance, get in touch with us today. You can book a free consultation with one of our advisers to discuss our services.
Contact Us
Not quite ready to book an appointment yet or unsure if it’s the right step for you? No worries! We understand that making decisions regarding legal matters can be daunting.
Reach out to our Client Care Manager, Rikki, who will be more than happy to assist you and guide you in the right direction.
Your peace of mind matters to us, and we’re here to support you every step of the way. Contact Rikki today for personalised guidance and assistance.