KNOWLEDGE BASE Taxation Triggers In The UK

The information on this page was current at the time it was published. Regulations, trends, statistics, and other information are constantly changing. While we strive to update our Knowledge Base, we strongly suggest you use these pages as a general guide and be sure to verify any regulations, statistics, guidelines, or other information that are important to your efforts.

 

October 30th, 2019 Update: 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. The original plan was for the UK to leave the EU on March 29th, 2019 but the process has proven to be very complicated and dates and outcomes have continued to shift. On October 28th, 2019, the EU agreed to push the extension deadline to January 31, 2020. 

We will continue to update this bulletin as information is provided.

 

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