KNOWLEDGE BASE Taxation Triggers In The UK

On March 29, 2017, UK Prime Minister Theresa May triggered Article 50, which formally started the process whereby the UK will leave the European Union. Article 50 was just the beginning of the withdrawal process, as it allows the UK two years to negotiate its leave with the other EU member states. UK laws and regulations did not and will not change overnight. We will update our site with any relevant changes and information as it becomes available. You can learn more on the UK government site.

 

Taxation Triggers In The UK

 

When doing business in the United Kingdom, you need to consider whether your activities will trigger tax obligations even if you are not a United Kingdom based business and have no physical presence in the United Kingdom. There are several ways in which you could trigger tax obligations by doing business in the UK or with UK residents.

 

Because business tax is far too complicated and company specific, this tax information will only pertain to the other indirect taxes you might be responsible for when doing business in the UK. In general, if your business is based in the UK or the executive board is based in the UK, you will be liable for taxes on globally generated income. On the other hand, if neither your business nor the board is based in the UK, you will be liable for only tax on income generated in the UK, i.e., from a sales (VAT) in the UK, a permanent establishment or representative, dividends, or licenses.

 

 

Because taxes are one of the most complex areas of law, and are completely business specific, you should speak with a tax attorney and/or accountant to learn about and understand your tax obligations in the UK.

 

 

Value Added Tax

 

Value Added Tax (VAT) is a broad-based consumption tax levied on the sale of all supplies of goods and services in the United Kingdom. VAT is paid every time a customer buys a taxable good or service from a VAT-registered business. Suppliers essentially act as VAT collection agents. VAT applies to you if you are a VAT-registered business that supplies goods or services to customers. You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £85,000.

For more detailed information on VAT, see Value Added Tax in the UK in the Product Localization section.  As part of the UK Expansion Plan, Globig provides more information and steps in the UK Taxation Triggers Plan for determining if VAT applies to your company and how to manage it, if it does. 

 

Business Property Tax

 

Business property taxes are imposed annually on most non-domestic property, and are levied by your local council. You are responsible for keeping your business location updated to ensure you are paying the proper tax.

 

Company Car Tax

 

You may be responsible for tax for company cars and fuel you let your employees use in the course of business.

 

UK Business Tax

 

Value Added Tax

 

Business property taxes


Company cars and fuel tax

KNOWLEDGE BASE Taxation Triggers In The UK