The Coronavirus has provided a global corporate downturn, and in the UK, Tier 1 business visa holders are concerned about how the current COVID-19 pandemic and current economic environment will affect their extension and an ILR application. Failure to meet the extension requirements for Tier 1 Entrepreneur visa holders could lead to business closure and the worst possible to leave the UK. The requirement of creating two full-time jobs can cause problems in applying for a Tier 1 Entrepreneur visa extension or ILR in the current economic downturn caused by Coronavirus.

One of the main requirements for extending a Tier 1 entrepreneur visa or applying for permanent residency as a Tier 1 entrepreneur is to show evidence that two settled workers have been employed for 12 months each. The full time is defined as a minimum of 30 hours a week, which should be filled with British citizenship or people who have settled in the UK.

According to the updated immigration rules, if the coronavirus has disrupted the business, there is no need for 12 consecutive months of evidence in at least 2 jobs and 2 employers.

The 12 month period they are required to employ someone for, can be made up of multiple jobs across different months, providing when combined is equivalent to 2 full-time jobs.

For example, you can create a job by combining a restaurant manager who worked for six months and a kitchen porter who worked for six months.

Numerous businesses are taking advantage of the job retention system, called the "Furlough scheme." The Home Office has confirmed that employees who have sponsored migrants or other visa holders can be furloughed and that grants made are not considered as ‘recourse to public funds’.

In addition, employees can be included in the 12-month job creation period if they have received more than 80% of their normal salary under the UK government ‘Furlough scheme’. To this end, Tier 1 Entrepreneur applicants should provide evidence that the business has been affected by COVID-19 as much as possible, along with evidence that they have received employee furlough payment.

If you are not possible to meet the requirement of 12 months of employment until the visa expires as an entrepreneur, you may extend your stay for another 2 years.

To extend your stay, it is necessary to submit evidence that at least two jobs were created for employees who settled at the time of application but could not be maintained and that it was difficult to operate normally due to the influence of COVID-19. Importantly, all other requirements must be met except job creation.

If the extension is granted, it must prove that two more full-time jobs have been created for additional 12 months in addition to the existing job creation requirements.

Even if you do not meet the requirements for job creation, it will be helpful for Tier 1 Entrepreneur visa holders to have more time to meet the requirements. However, even if the extension is granted, the conditions for job creation could be far more burdensome to the business over the next two years. Records shall be maintained for employees, including employment contracts, payroll records and identification documents, to demonstrate job creation. It is also recommendable to have as much evidence as possible to demonstrate the authenticity of the business and the impact of COVID-19.