In the UK, businesses have three main reporting procedures to carry out, these include Payroll, Confirmation Statement and Corporation Tax.
Payroll is usually run monthly in the UK, not twice a month like in Australia. Companies are required to file a monthly return and the payroll taxes are due to HMRC in the middle of the following month. There are instances where you can have twice-a-month payroll or weekly. We would advise that unless you are employing shift workers, for example, you would avoid running payroll this frequently.
“Many businesses from Australia are relieved when they hear that UK businesses only run payroll once a month” Paul Beare.
Known as an annual return in Australia, the UK requires businesses to provide a confirmation statement on a yearly basis. The statement can be filed in the UK as many times as you want however this affects the reporting period for the upcoming year. For example, if you have changes to shareholders, you may wish to file the confirmation statements sooner so that they reflect the information with Companies House. The detail provided to Companies House is a matter of public record. We would, therefore, advise that you do not use the director’s home address for the company’s office address.
“A month ago, I was sat in Perth next to a contact who said to me that ‘we’ve been set up in the UK for two years. We bank with Barclays.’ I pulled up his company details on Companies House and in seconds I showed him his home address – he was shocked!” says Paul Beare.
From a privacy perspective, we would advise you not to have a home address as your service address when setting up in the UK.
The responsibility for correctly calculating the UK corporation tax liability falls on business directors, irrespective whether they are based in the UK or overseas.
Corporation tax is an amount that limited companies must pay to HMRC on all taxable trading profits. It could be referred to as income tax. It is also known as a CT600. It is set at a flat rate of 19% for most UK company’s. All limited companies and non-profit organisations that are trading in the UK must pay corporation tax on all forms of taxable income.
We act as a Trusted Advisor for many overseas companies. You need to approach your professional advisers in the UK with an open mind. They need to have a proven track record of supporting overseas companies in the UK. Whoever you decide to work with; an accountant or lawyer, they need to understand your parent company jurisdiction, trust law and inter-company accounts.
For further support on how we can support your UK or European market entry, or for an introduction to a law firm for support, please do get in touch.