The UK is often shown as the best place in the world to do business and normally ranks in the top 5 economies in the world by GDP. Source Most of the filing with the UK company and tax authorities are online making tasks such as a change of company registered office very simple and executed in minutes. In many countries, even in Europe, this process can take days or even weeks and involve many documents and stamps.
Access a highly skilled workforce; the UK is ranked 2nd in the G20 Global Innovation Index and has graduates from 4 of the world’s top 10 universities. It is no surprise therefore that the UK has the largest proportion of people educated to degree level or equivalent in Western Europe. Source
The UK also has a highly competitive and commercially viable business environment with the lowest rate of corporation tax in the G20, lower labour costs than businesses in Germany, France and Italy and offers up to 235% tax relief on research and development. Source
In Great Britain, you can rely on an attitude of getting things done, an in-depth knowledge of some of the world’s toughest standards, commercial sense and that globally recognised sense of fair play.
We can arrange to set up your new company or assist with the acquisition of an existing company. From new companies to mature businesses we can arrange everything from formation through to integrated group financial reporting.
To form your new company is straightforward in UK and usually takes a few hours.
There are three types of registration:
Company limited by shares (Ltd or Limited)
This is the most popular. The company has limited liability and the shareholders’ risk is limited to the value of the issued share capital. Limited companies allow a split of ownership and control because directors do not necessarily need to be shareholders and nor to shareholders need to be directors. We can assist you with company secretarial work including the preparation of board minutes, resolutions, statutory records and share certificates. Additionally it is advisable to prepare a shareholders agreement with which we can also assist; depending on the complexity we can arrange this through specialise lawyers.
Company limited by guarantee (Ltd or Limited)
This is similar to a company limited by share but instead of shares the company has guarantors who undertake to contribute an amount of money should the business be wound up and have debts to pay. It is normally used by non-profit organisations such as clubs, associations and charities as there is no intention to distribute profit to shareholders
Limited Liability Partnership (LLP)
This structure is like a traditional partnership but has the benefit of limited liability. Unlike a limited company, it does not split ownership and control as a70% partner for example, owns 70% and controls 70%. It is advisable to have partnership agreement with which we can assist.
We charge a set fee for formations and if you are abroad, you do not need to visit UK; we can deal with all documents and verifications online.
Companies and LLPs are required to file accounts annually, 9 months after the accounting date (the company year end) and in accordance with company legislation and Financial Reporting Standards. Companies House in UK provide guidance.
For financial years that begin on or after 1 January 2016 your company may qualify for an audit exemption if it has at least 2 of the following:
- an annual turnover of no more than £10.2 million
- assets worth no more than £5.1 million
- 50 or fewer employees on average
If your company exceeds these levels we can arrange for an independent audit to be carried out.
We prepare financial statements for filing and can manage the entire process for you, subject to your agreement as director. If you are based abroad, there is no need to send original signature documents; all approvals can be made online.
The UK Corporation Tax rate is currently 19% and due for fall to 17% by 2020. Corporation tax is payable 9 months after the end of the accounting period and a corporation tax return is due for filing 12 months after the end of the accounting period or a fine is charged.
Where taxable profits exceed £1.5m in a 12 month accounting period, quarterly instalments are payable.
All trading business are required to register for VAT if income for any 12-month period exceeds the VAT (Value Added Tax) threshold (currently £83,000).
VAT is a tax charged on the sale of goods and services by UK companies. The standard rate of VAT is 20 percent, there is a reduced rate of 5 percent and a zero rate – 0 percent. Some items are also VAT exempt which means that where your sales fall under exempt supplies, the amount of VAT you can claim back on your purchases can be restricted..
Smaller companies with turnover under £150,000 can use the government’s flat rate scheme.
VAT returns and the related payment if one is due, should be filed online within one calendar month and seven days of the VAT period end. Detailed reports must be retained of the calculations and all VAT claimed back must be supported by relevant documentation. We manage all of this including the filing of VAT returns as part of our outsourcing package
PAYE and National Insurance Contributions
PAYE (Pay As You Earn) is a process for collecting Income Tax and National Insurance contributions from employees’ pay as they earn it. The directors of a Limited Company are also employees and will liable to the same process if salaried.
The taxes and national insurance are payable to HMRC monthly or quarterly by 22nd of the following month. . We manage all of this including the filing of PAYE RTI (Real Time Information) as part of our outsourcing package
Subsidiaries operating in different countries to the parent company, need to report back in a way which enables the group to review and compare financial results. Management reporting involves the collection, measurement, review and analysis of financial information. There is a role for analytical review to compare and contrast results and identify breaks in trends. A further step is internal audit to check the accuracy of information.
Even this is not enough. Good management reports should not be written to be understood only by accountants. The next steps are first to interpret the results and understand the implications for the business. The final and most important stage is to communicate with management so that they can make business decisions based upon that interpreted information and backed by the full financial detail.
In order to provide meaningful information to a holding company in another country, the principles above must be followed first but there is another step which involves establishing a standard presentation of information across the whole group. The cost headings for example should be consistent across the group but in practice, this is often corrupted by the need for local legal compliance.
We can assist you to overcome the problems of local compliance requirements whilst still establishing a standard reporting system using appropriate mapping of accounts data and secure transfer of information. Our affiliation with GSI Translations enables us also to overcome language barriers in cross border group reporting.
Every business should have a business plan, with targets and financial forecasts. These are used to set individual targets, for the sales team for example and also to measure business performance against what was anticipated or thought to be achievable.
Each company will have its own set of requirements so forecasts should be tailored to that company’s or group’s ideal requirements. Many companies which embrace the idea of budgeting and forecasting often produce forecasts and trends to a level which is too detailed and therefore not meaningful or easy to understand which undermines the object of the exercise. It’s all about balance; simplifying accurate information from which to learn and take decisions about the future.