Date of publication: April 2017
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 for 2 years).
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 for further 2 years).
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: Protection in all 28 EU member states including the UK. 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 it does not constitute legal advice. Please contact us if you have any questions about the information set out above.
Copyright © 2013 - Oury Clark.