The UK recently made important changes to the Youth Mobility Scheme (YMS) visa for young people from Australia and New Zealand. These changes allow more young people to work, live, and study in the UK for a longer time. However, for entrepreneurs, the self-sponsorship route might be an even better option. In this article, we will explain what the Youth Mobility Scheme visa is, the recent updates, and why self-sponsorship could be the ideal choice for ambitious entrepreneurs from New Zealand and Australia.
What is the Tier 5 Youth Mobility Scheme Visa?
The Tier 5 Youth Mobility Scheme (YMS) visa allows young people from specific countries to come to the UK for up to 2 years to work, study, or travel. It replaced the old Working Holiday Visa in 2008.
To be eligible for the YMS visa, applicants must be between the ages of 18 and 30 and come from one of the following countries:
- Australia
- New Zealand
- Canada
- Monaco
- San Marino
- Iceland
Citizens of countries like Hong Kong, Japan, South Korea, and Taiwan can also apply, but they must be selected through a ballot. Additionally, British Overseas Citizens and certain British nationals can apply if they meet the age requirements.
Applicants must also have at least £2,530 in savings to qualify.
The YMS visa allows holders to be self-employed and even start their own businesses in the UK. However, there are strict rules about how much you can earn, the type of business you can set up, and the number of employees you can hire.
Recent Changes to the YMS Visa for Australians and New Zealanders
From 29th June 2023 (for New Zealand) and 31st January 2024 (for Australia), the UK will allow young people from New Zealand and Australia to stay in the UK for up to 3 years, instead of just 2.
- New Zealand Nationals: Age range expanded from 18-30 to 18-35, with the ability to extend the visa for one more year (maximum stay of 3 years).
- Australian Nationals: The age range will also be extended from 18-30 to 18-35, with a 1-year extension option starting 31st January 2024 (maximum stay of 3 years).
Restrictions on Young Entrepreneurs Under the YMS Visa
While the Youth Mobility Scheme visa offers great opportunities, it comes with some limitations for entrepreneurs, especially those looking to start or grow a business in the UK. Under the current rules, you can only be self-employed if:
- You rent business premises
- Your equipment is valued at less than £5,000
- You don’t hire any employees
For ambitious entrepreneurs, these rules can feel very restrictive. If you want to build a larger business, you’ll eventually need to switch to a different visa if you plan to stay in the UK beyond 3 years.
Why Self-Sponsorship is a Better Option for Entrepreneurs
Self-sponsorship allows you to be your sponsor, which means you can work for your own UK-based business. This is a more flexible and long-term solution for young entrepreneurs from New Zealand and Australia who want to set up a successful business in the UK. Here are the main benefits of self-sponsorship:
- No restrictions on business premises, equipment, or employees
- You can apply for permanent residency (settlement) after 5 years of continuous residence in the UK
- No need to switch visas after 2 or 3 years
- No age limits for applicants
Self-sponsorship works under the Skilled Worker visa route. If you’re an entrepreneur, you can apply for this visa by sponsoring yourself through your own business.
Steps to Apply for Self-Sponsorship as a Young Entrepreneur
To apply for self-sponsorship, follow these steps:
- Establish or take over a business in the UK.
- Apply for a sponsor license from UK Visas and Immigration (UKVI).
- Issue a Certificate of Sponsorship (CoS) for yourself.
- Apply for a Skilled Worker visa.
To get a sponsor license, you need to show UKVI that your business:
- Has an HR system to manage sponsored workers
- Needs to sponsor overseas workers for eligible roles
- Can meet the minimum salary requirements
- Has the right staff to manage your sponsor license
For the Skilled Worker visa, you must prove:
- You have a Certificate of Sponsorship (CoS) from your business
- Your role meets the requirements for sponsorship
- You earn at least £26,200 per year or £10.75 per hour
- You meet the English language requirements (CEFR Level B1 or higher)
While applying for self-sponsorship can take more time than the Youth Mobility Scheme visa, it is a much better long-term option for serious young entrepreneurs from New Zealand and Australia. With self-sponsorship, you can build your business without restrictions, and have a clear pathway to permanent residence for you and your family.
How Law and Visas Can Help?
At Law and Visas, our team of expert immigration consultants is here to make your travel to Ireland straightforward and successful. Whether you’re applying for a Youth Mobility & Self-Sponsorship visa or need assistance with other immigration services, we handle every step—from preparing your application to gathering the required documents.
Our immigration lawyer consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.
Law and Visas has a strong record of helping clients secure the visas and permits they need for international travel. Call us today at +234 812 5505 986 to learn how we can assist you.
