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Disguised Employment in UK Immigration: Why It Matters and How to Avoid Risk

Written by
Buket Erdoğan
Date of Publication:

"UKVI assesses the reality of work, not just the labels in contracts or business structures."

Disguised employment, where an arrangement labelled as self-employment or business activity effectively mirrors employment, is a critical compliance concern in UK immigration. An arrangement that amounts to disguised employment can lead not only to refusals but also to retrospective scrutiny at the stage of Indefinite Leave to Remain (ILR). Maintaining clear and consistent documentation and robust evidence is essential to safeguard long-term immigration status.

ECAA Routes: Closed but Still Relevant

The ECAA Ankara Agreement routes, covering both Businessperson and Turkish Worker categories, are closed to new applicants following the UK's exit from the EU. Nevertheless, these routes remain highly relevant for those who were granted ECAA leave prior to closure.

UK Visas and Immigration (UKVI) continues to examine compliance with Appendix ECAA, the genuineness of business or employment, and potential disguised employment issues. This scrutiny applies to extension applications and ILR, where the authority may review an applicant's entire immigration history, including historic working arrangements.

For existing ECAA leave holders, the rules discussed in this article remain fully applicable and provide useful comparative insights for other immigration routes, including the Skilled Worker visa.

Understanding Disguised Employment

Disguised employment arises when the work performed is, in effect, employment, even if labelled otherwise. UKVI evaluates the actual working arrangements, including the degree of control exercised over the worker, financial risk and independence, integration into the client's organisation, and the right to delegate or substitute work. The number and independence of clients is also considered. These principles are applied consistently across immigration categories and are not limited to ECAA or self-employment cases.

If the arrangements are not genuine, this can affect credibility under Part 9 – Suitability, potentially resulting in refusal and a ban of entry.

ECAA Businesspersons and Turkish Workers

For ECAA Businesspersons, applicants must demonstrate the genuine operation of a business in the UK. Evidence should reflect a viable enterprise, autonomy over operations, financial investment, and decision-making authority. If UKVI determines that the applicant's activities amount to employment in disguise, the application may be refused.

ECAA Turkish Workers are required to show that their employment is genuine and consistent with visa conditions. Any material divergence from declared working arrangements may result in refusal on extension or future applications.

"Even though ECAA routes are closed to new entrants, compliance and documentation remain essential for existing holders."

Skilled Worker Visas and Supplementary Employment

Skilled Worker visa holders are also subject to scrutiny for disguised employment, particularly when undertaking supplementary or third-party work. The rules have evolved significantly, particularly since April 2024 and July 2025. Supplementary employment is defined as additional work paid or self-employed carried out outside the hours of the main sponsored role, and it must not interfere with that role.

Recent updates clarify that supplementary employment is permitted only if the work is in an eligible occupation code, is performed outside normal contracted hours, and does not exceed 20 hours per week. For visa holders with continuous Skilled Worker leave since before 22 July 2025, supplementary work may include lower-skilled roles (RQF3–5) in eligible occupations, reflecting transitional arrangements. Those granted visas on or after 22 July 2025 may generally undertake supplementary work only in RQF6-level occupations or in roles matching the occupation code of their main job.

Self-employment or running one's own business can qualify as supplementary employment if it meets these criteria. Work outside the permitted conditions such as exceeding 20 hours per week or in non-eligible roles requires a new Certificate of Sponsorship and a variation of leave.

Even where supplementary work is permitted, UKVI may still examine whether it effectively becomes the dominant employment or blurs the distinction between supplementary and primary work. If the visa holder appears to be primarily employed by another organisation, or the arrangement undermines the sponsored role, it may raise concerns about disguised employment, which in turn can negatively affect credibility and result in refusal under Part 9 – Suitability and a possible ban for reentry. Competition clause should also be considered.

IR35 Considerations

Although IR35 is a tax regime, UKVI increasingly considers its determinations as indicative of the true nature of a working arrangement. If an engagement is deemed "inside IR35," it suggests that the worker functions as an employee, reinforcing concerns about disguised employment. Applicants should ensure alignment between contracts, working practices, and tax treatment.

Documentation and Evidence

Supporting evidence is critical. Contracts should reflect actual working practices, while business records, invoices, and tax returns must be consistent with claimed independence or self-employment. Evidence of multiple clients and financial risk further substantiates the genuineness of a business operation. Inconsistencies across HMRC filings, Companies House records, or immigration submissions may undermine credibility and increase the risk of refusal.

"Consistency across documentation is crucial to avoid raising doubts about the nature of work and to maintain credibility under Part 9 – Suitability."

ILR and Retrospective Scrutiny

At ILR stage, UKVI may review the applicant's entire immigration history, including previous grants of leave and historic working arrangements. If disguised employment is identified retrospectively, ILR may be refused, highlighting the importance of maintaining compliance throughout the qualifying period.

Disguised employment remains a significant compliance risk across multiple UK immigration routes. Applicants and advisers must focus on the substance of working arrangements, maintain clear and consistent documentation, and ensure alignment with tax and employment principles, including IR35. Awareness of supplementary employment rules for Skilled Workers is equally critical. Failing to provide genuine evidence or attempting to disguise employment can undermine credibility under Part 9 – Suitability, potentially resulting in refusal. Following these principles safeguards both current and future immigration status, including eligibility for earned settlement and eventual citizenship.

References

1. UKVI. Immigration Rules Appendix ECAA – Extension of Stay. Gov.uk

2. UKVI. Immigration Rules Appendix ECAA – Indefinite Leave to Remain. Gov.uk

3. UKVI. Skilled Worker Visa Caseworker Guidance. Gov.uk

4. University of Oxford Staff Immigration. Skilled Worker Supplementary Employment Changes. Staff Immigration

5. HMRC. Understanding Off-Payroll Working (IR35). Gov.uk