Tax advisory in the UK.
The UK is chosen for its payment infrastructure and recognition rather than for any tax advantage. We assess the rules that apply to your company in respect of corporation tax, VAT and dividends, and we put the filing calendar together with you.
- The filing calendar is monitored by a single team
- Accounting and tax since 1996
UK Tax Framework.
The corporation tax rate varies with the amount of profit: 19% on lower profits and 25% on higher profits; in the intermediate band the rate is tapered.
Corporation tax varies with profitSelect your annual profit with the slider.
- Annual profit
- £120,000
- Tax rate
- 23.4%
- Tax payable
- ≈ £28,050
- 19%Profit up to £50,000
The small profits rate.
- 25%Above £250,000
The main rate; a gradual transition applies in the intermediate band.
- £90,000VAT threshold
Registration is mandatory if annual turnover exceeds the threshold; below it, it is voluntary.
- TreatyDouble taxation agreements
Whether a double taxation agreement applies depends on your country of residence.
Service Scope and Limits.
We assess the rules that apply to your company. Registration and filing are handled together with our accounting team.
Corporation tax framework
We determine the rate that applies to your profit and the filing calendar.
VAT position
We assess together whether registration is mandatory and the voluntary registration option.
Planning the registrations
Tax registration and, where required, VAT registration are planned together with our accounting team.
Dividends and your country of residence
We consider the tax position of the company and of the shareholder together.
Salary and dividend options
We explain the consequences of the two options in the UK, together with the payroll registration.
Follow-up during the year
If turnover approaches the threshold or the structure changes, we reassess your position.
Outside the scope
- Monthly bookkeeping (under the accounting service)
- Independent audit report
- Your personal tax return in your country of residence
- Any guarantee of the tax outcome
Annual Tax Calendar.
In the UK, deadlines are fixed and penalties apply automatically. The ring below shows the example of a company whose financial year closes in December.
- Annual accountsSeptember
- Corporation tax paymentOctober
- Tax returnDecember
- 3 months
Corporation tax registration
Made within three months of the company starting its activity.
- 9 months
Annual accounts
From the financial year end; first accounts within 21 months of incorporation.
From £150 to £1,500
- 9 months 1 day
Tax payment
From the end of the period; paid before the return.
- 12 months
Tax return
Corporation tax return, from the end of the period.
£200 after 1 day, a further £200 after 3 months
Shareholders' Tax Position by Country of Residence.
Profit is taxed in the UK first. Whether any further tax arises depends on the rules of your country of residence when profit is paid to you as a dividend.
- Your companyIn the UK19% to 25%
Profit is taxed here first. The rate is 19% on profit up to £50,000.
- If profit stays in the companyIn your country of residenceLocal rules applyor
Whether retained profit is taxed in your country of residence depends on its rules.
- If you receive dividendsIn your country of residenceDeclaration
Whether and how dividends are declared depends on the rules of your country of residence.
Details
- If the company is managed from your country of residence
A company whose activities are effectively managed from another country may also be treated as a taxpayer in that country; where there is a dispute, the two countries may resolve it by mutual agreement.
- Salary option
If you pay yourself a salary as a director, a payroll registration is required in the UK.
- Personal opinion
We do not give personal tax opinions; we assess your situation in the consultation.
Common Mistakes and Their Penalties.
In the UK, penalties apply automatically; the amount rises as the delay lengthens.
Expecting a tax advantage
Profit is taxed at between 19% and 25%; the UK is not chosen for a tax advantage.
- From £200
Delaying the return
A penalty applies for a delay of one day; if the delay exceeds three months, it applies a second time.
- £150 to £1,500
Filing the accounts late
If the delay occurs in two consecutive years, the penalty doubles.
Not monitoring the VAT threshold
Registration becomes mandatory once annual turnover exceeds £90,000.
Managing the company from your country of residence
A company effectively managed from another country may also be treated as a taxpayer there.
Paying a salary without a payroll registration
A payroll registration is also required where a sole director pays a salary only to themselves.
Increase in penalties on late accounts
Annual accounts, penalty by length of delay.
- £150Up to 1 month
- £3751 to 3 months
- £7503 to 6 months
- £1,500Over 6 months
Our Working Method.
The process consists of four steps; the first step is a consultation.
Assessing the activity
Information is taken on what you sell and where the company is managed from.
Establishing the framework
The rules that apply to your company are notified in writing.
Registration planning
Tax registration and, where required, VAT registration are planned.
Monitoring during the year
If turnover approaches the threshold, your position is reassessed.
Frequently Asked Questions.
It is not appropriate to form a company with this expectation. The company's profit is subject to corporation tax in the UK at between 19% and 25%. The UK is chosen for its payment infrastructure and recognition.
A company whose activities are effectively managed from another country may also be treated as a taxpayer in that country; where there is a dispute, the two countries may resolve it by mutual agreement. We assess your situation in the consultation.
Dividends are declared and taxed under the rules of your country of residence, which differ from country to country. We do not give personal tax opinions; please consult a tax adviser in your country of residence.
Both options are possible. A salary requires a payroll registration in the UK. The suitable option depends on your position in your country of residence.
It is mandatory if annual turnover exceeds £90,000; below this amount it is voluntary. Where your customer profile requires it, we assess voluntary registration together with you.
The penalty applies automatically: £200 for a delay of one day, and a further £200 if the delay exceeds three months. In the case of three consecutive late filings, the amount rises to £1,000.
Yes. A company with activity files its annual accounts and corporation tax return even if there is no profit; the deadlines are the same.
Because the scope varies from company to company, no fixed price is stated; the fee is notified in writing after the consultation.