Posted by Nick Day on 09 Feb 2018
Expanding into the UK Market: Tax Advice and Assistance
If you have started your business outside the UK and are looking at expanding into the UK market, there are a variety of structural and regulatory issues facing you. Tax Innovations can help you to find the best structure for your business, both now and in the future, and ensure that you meet your UK regulatory requirements.
Form of UK Business
The profits arising from the UK part of your business will generally be taxable in the UK. The form of the UK business (e.g. trading through a branch, a UK subsidiary, or through the direct engagement of your existing overseas entity) can impact on the requirements, as well as on the ease and cost of UK reporting and compliance.
Tax Innovations can advise you on the pros and cons of each option, including reference to the structure of the relationship with the UK workers to be, and help you to determine which business form best suits your needs. Our work will include liaising with your overseas tax advisers, in order to ensure that any UK structure put in place fits in with the overall structure, without any nasty tax surprises.
We will also provide advice on your reporting requirements under each option, as well as the likely tax impact of the various options on other stakeholders.
Structure of Worker Relationships
There are a variety of forms of worker relationship available in the UK, each with their own UK tax consequences and Tax Innovations can help you determine the employment status of UK workers.
This will involve reviewing your worker contracts from a UK tax perspective to ensure the contracts and worker relationships are effective in achieving the expected UK tax position.
UK Business Compliance and Tax Services
Once the form of the business is decided, the structure needs to be put in place. Tax Innovations can provide you with experienced assistance, particularly in the following areas:
- We provide UK VAT support services including registration with HMRC, preparation & submission of VAT returns and ad hoc VAT advice on any VAT matters arising.
- We have experience with helping non-UK clients to set up a UK bank account; if this is required (e.g. for UK VAT purposes).
- If you decide that a UK company is required then we can incorporate a UK company for you, ensuring that the shareholdings, directors, etc. are correctly set up to start with. Furthermore, we provide ongoing Company Secretarial services for companies, keeping the company’s public record up to date and ensuring that Companies House annual filing requirements are met.
- We provide accounts support for your business. Our accounts team can provide management accounts if you need up to date information to ensure your UK business expansion is progressing as planned. Our team will also prepare any necessary year end accounts for reporting purposes, including statutory accounts for the public record if you are using a UK company, or UK branch accounts for your overseas business to report to HMRC.
- Our specialist tax team provides a broad range of tax compliance services:
- The Tax Innovations team will also provide you with ongoing UK tax advice on any matter, both arising in the course of your business and in any other area.
If you have employees, Tax Innovations can assist with UK payroll matters. We understand that you may wish to keep any payroll in-house; however, Tax Innovations runs a dedicated payroll bureau for clients, so can assist you with establishing and running a UK PAYE scheme to ensure that tax is correctly deducted at source from employees’ wages.
Even if you do not wish to use our payroll bureau, we can provide you with payroll advice and assistance for other issues that may arise, including managing pension auto-enrolment requirements for your employees.
Tax Innovations always take a holistic approach to tax advice – there is little point in creating a business structure that is tax efficient in the UK but that creates additional tax overseas. We have a pool of knowledge and experience over a broad range of business matters and issues; the items set out above are only the tip of the UK regulatory iceberg. If there are other factors for which you need UK advice then the Tax Innovations team is always ready to help.
Ongoing Advice on Expanding into the UK Market
If you would like any further tax advice on expanding into the UK market or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
- Tax Relief For Residential Mortgages
- Incorporation of Property Portfolio
- Property Partnership Incorporation and SDLT
- Non-Cash Employee Benefits
- UK tax residents – beware of US LLCs!