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November 25th 2013 / BY: Wisteria

Tax Advisors can help non-UK residents with their UK company formation

If you are a non-UK resident about to register a company in the UK, it may be worth contacting your Tax Consultants or a Chartered Tax Advisor for information and advice.  There are many responsibilities that come with forming a company and, as a director, it is important that you stay compliant with UK tax obligations. If you are not familiar with this, then talking to tax accountants or tax advisors can be a beneficial way to begin your company.

Tax advisors can walk you everything you need to know in order to stay compliant with HMRC and tax law as well as to find the most tax efficient routes for your company.

 Tax Advisors

It is important to know about HMRC before you company formations as a non-UK resident. Her Majesty’s Revenue and Customs (HMRC) is a government department in the UK responsible collecting tax, various compulsory tax forms and managing certain regulatory systems.

The main tax concerns for non-UK residents include:

  • VAT registration
  • Corporation tax
  • Self-Assessment tax returns
  • Capital gains tax
  • How to pay yourself as a director
  • PAYE registration and payroll

With limited companies, you must register for VAT if your taxable turnover is above £79,000. You may find this website useful http://www.vat-registration-threshold.co.uk/vat-registration as it provides details on what you need to know about VAT.

VAT is likely to be more complex if you are doing business overseas, for example tax on imports, exports and transactions with foreign currencies can complicate trading. Therefore it is important to speak to Tax Advisors about this matter to plan your business carefully.

You may be aware of capital gains tax. If your company ‘disposes’ of an asset or sells an asset, then HMRC may tax you on any profits or gains made from this. For example, you buy shares for £100 but later choose to sell them for £250; you will get taxed on the gain of £150 made from the sale of this asset.

Wisteria Chartered Accountants, Business and Tax Advisors provide a variety of tax services for companies and individuals.  For tax advice, information on our services or details on setting up a company if you are a non-UK resident, please contact 0844 893 0808 or email formations@wisteria.co.uk.