Following a review of the existing Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) categories by independent Migration Advisory Committee (MAC) in 2015, the MAC recommended that:
- the Tier 1 (Graduate Entrepreneur) category, with its endorsement approach, was working well and should be expanded into a broader Start-up category;
- the Tier 1 (Entrepreneur) category was in need of substantial reform, as it had a long tail of low-quality projects which contributed little or nothing to the UK economy.
Tier 1 (Entrepreneur) applications can continue to be made until 29th March 2019.
What’s new in Innovator visa category?
The Innovator category is intended for more experienced businesspeople. As well as an endorsement, applicants will need £50,000 to invest in their business from any legitimate source (reduced from £200,000 for most applicants in the current Tier 1 (Entrepreneur) category). The funding requirement will be waived for those switching from the Start-up category (replacing graduate entrepreneur)who have made significant achievements against their business plans. The category may lead to a settlement in the UK.
| Category the applicant is applying in | Eligible switching categories |
| Start-up |
|
| Innovator |
|
Innovator visa extension
Endorsement for extension applications in the Innovator category will be based on an assessment of whether applicants have made significant achievements against their business plans, and whether their businesses are trading. Applicants whose original business ideas did not succeed may re-apply, with a new business idea, for endorsement under the criteria for initial applications.
Settlement
Endorsements for settlement applications will be made against a range of criteria – covering investment, innovation, business growth and job creation – which applicants may choose from in order to qualify for settlement. Applicants may apply for accelerated settlement ( normally requires 5 years residence) as soon as their businesses satisfy at least two of these criteria, providing they have spent at least three years in the category.
English language requirements
An English language requirement is being set at upper intermediate (B2) level (up from intermediate (B1) under the previous categories) for both categories, to ensure that successful applicants have the good command of English they will need to interact with a variety of business organisations and potential customers.
Introduction of Appendix W
The new categories are set out in a new Appendix W to the Immigration Rules. They do not form part of the Points-Based System and do not include points-scoring tables. Appendix W is designed to be clearer and easier to read than existing rules for the Points-Based System. It is anticipated that other categories for workers will be added to this Appendix as the immigration system is reformed over time.
The new categories nevertheless include similar provisions to the Points-Based System regarding evidential flexibility, switching categories, English language and maintenance funds requirements, qualifying for settlement and the ability for dependants (partners and children under age 18) to apply.
