Date of publication: January 2018
Competitive tax system:
Government funding is more limited than in some countries which comes as a shock to many clients but DIT can help advise on what funding options may be available.
Formation of a limited company is fast and inexpensive with no minimum capital requirements.
Only need 1 director & 1 shareholder. No requirement for director residency, although often needed to open a bank account.
Payroll is mandatory, but is quick to register (10 days) and simple to administer.
VAT registration is mandatory for turnover above £85k. Overseas companies may elect to, and sometimes must, register
There are significant tax incentives for companies undertaking R&D.
SMEs can deduct an extra 130% of their qualifying costs.
Large companies credit is calculated at 11% of their qualifying R&D expenditure.
Patent Box: 10% tax rate for income from UK & European Patents.
Self-employed or Employee?:
Sole Rep Visa: Send an employee to UK to set-up branch or subsidiary. Initial 3 year visa, apply before starting to trade in UK (extendable).
Tier 1 Entrepreneur Visa: Investor has approx. £200k cash to invest in setting up or taking over a UK business. Initial visa is for 3 years (extendable).
Tier 2 Skilled Worker Visa: Employer applies for a sponsor licence and then can apply to bring non-EU citizen to work in the UK..
UK: Protection in the UK only. Fee is £200 for application in one class plus legal fees (includes searches, report and application), and the process takes 3-4 months.
EU: EU: Protection in all EU member states (including the UK until Brexit). Fee is €850 for application in one class plus legal fees as above and takes approx. 6 months.
The owner of a trademark can legally defend the mark against infringements.
Opening a UK bank account:
EIS / SEIS
EIS: 30% income tax relief for an investor on investments up to £1m.
Sale of shares can be free of capital gains tax after a qualifying period.
SEIS: Available to small start-up companies with under 25 employees and £200k assets.
Investor receives 50% of the investment as income tax relief.
Disclaimer:This note does not contain a full statement of the law and does not constitute legal advice. Information correct at date of publication. Please contact us if you have any questions about setting up in the UK.
Copyright © 2013 - Oury Clark.