US Citizens — Setting up Your Own Business in the UK
- February 28, 2020
- Posted by: Hansen_Sweeney
- Categories: News, US/UK
What’s not to like about the UK? The United Kingdom has a strong currency rate. They have a manageable taxation system. Currently, the corporate tax rate stands at 20%. What’s more, the United Kingdom is an excellent financial hub. Studies show that companies based in the UK access more than 500 million customers in Europe alone. Considering this information, it makes sense why most US citizens want to set up their businesses on UK soil.
Nonetheless, it’s still possible to encounter a series of loopholes when starting your business in the UK. Most US citizens going to the UK aren’t aware of the obligations required by the country. This could make their stay in the country quite nerve-wracking. If you’re planning to expand your business to the UK, here are general tips you need to know to achieve global success.
Register as an overseas company
To operate a company in the UK, you’ll fill out the form (OS IN01) — ‘Registration of an overseas company opening a UK establishment’. Then send it to Companies House along with £20 as registration fees. Companies House is the official UK government agency that registers companies. Also, the organization is responsible for filing your company’s tax returns and accounts.
Register for tax
All UK companies and entrepreneurs register with HMRC for tax purposes. Typically, most companies register for taxes online. Once you have registered, you need to make sure to submit tax returns to HRMC before 31 October if filed by paper. If you e-file, then you have until January 31 of the next year. On the other hand, payment of taxes on income only is due on January 31.
All foreign businesses with UK branches or limited UK companies must register for corporate tax. Furthermore, if your annual turnover is above £ 83,000, then you also need to register for VAT. It’s good to note that when you sell business assets at a profit, you’ll also pay Capital Gains Tax.
Register as an employer
To employ staff in the UK, first, you’ll register with HRMC as an employer and get employers liability insurance. You also need the legal right to work in the UK. For a non-EU, this means having a relevant residence permit and a work visa.
Get your business moving
There’s a lot more that needs to happen to open a business in the UK. However, if you truly believe this is the right move, beginning small on the nitty-gritty details will set your plan in motion. In case you need help further knowing the state’s requirements, don’t hold back from seeking advice from the experts.