UK inward investment
If you are looking to establish your business in the UK then we can help to make it happen - quickly and easily.
We understand the challenges facing organisations wishing to locate in the UK. We have a significant number of overseas branches and subsidiary companies amongst our clients. We can also draw on our connections in Europe and the rest of the world through our membership of IEC, a worldwide network of accountants and business advisors.
We will use our many years of experience of working with businesses from the USA, Canada, Europe, Australia, Japan and many more countries around the world to understand your needs and to help you to create an effective presence in the UK with low capital investment and risk.
The service offered can take many forms and is tailored to each company's individual needs and requirements. The extent of our service is dependent upon the type of activity of the overseas company concerned. Set out below is a broad summary of the areas of activity we offer advice on:
- Initial advice on legal entity for UK operation and liaison with existing tax accountants and solicitors/attorneys.
- UK taxation law for payroll, income and corporate taxes including VAT.
- Registration with the relevant UK Government departments.
- Provision of registered office address.
- Provision of responsible officer/UK representative services including cheque signatory services.
- Provision of secretarial and support staff.
- Provision of UK based accounting support.
- Annual audit/accounting review services in consultation with parent company auditors.
The UK Government wants to encourage multinational companies to come to the UK. Tax legislation has been constrcuted to make the UK a very attractive location for overseas investors. Should you want to take advantage of these opportunities, Sayers Butterworth LLP can help you through the expansion and cultural change process. Our overseas clients have a wide variety of business requirements and we can usually provide any assistance needed.
There are a number of important tax, legal and regulatory differences between the various options. We will invest time in order to understand your exact needs, and future plans, in order to ensure that you select the most appropriate option. Typically companies can operate in the UK through a subsidiary company, a UK registered branch or a UK registered place of business.
The UK now has one of the lowest rates of business tax ("corporation tax") in Europe and has a favourable capital taxes regime to rival that of the Netherlands. In addition, UK social taxes are lower than many of its European counterparts.
In the UK both branches and companies pay corporation tax, although the rates applicable will be dependent on your circumstances. The social tax is known as national insurance ("NI"). NI contributions have to be paid by the workforce as a deduction from their gross salary ("employees NI") and by employers ("employers NI"). Employers have an obligation to collect NI, together with UK income tax, and pay the amounts over to the tax authorities.
Another aspect to be aware of is Value Added Tax (VAT). VAT is a sales tax, and there is a threshold above which all businesses making relevant taxable supplies must register for VAT. A UK VAT registered business must charge and account for VAT, currently at the rate of 20%, on its taxable supplies (sales). It is usually possible, however, to offset any VAT incurred on expenses that relate to business purchases.
Many of our clients do not initially employ a UK accountant in-house and therefore look to outsource some or all of their financial and regulatory functions to a firm like ours. Whilst some of the basic processing can be done overseas there is usually a need to do some bookkeeping in the UK. In addition there are a large number of ongoing regulatory, legal and tax filings that are specific to the UK. Whilst non-financial staff can deal with some of these, it can distract from the key task of growing the business.
For more detail on how we would work to help you, contact Matthew Wright and Matt Bird.