If you are an international business owner looking to sell or invest in the UK, you’re probably aware of some of the challenges that lay before you. What used to be a fairly straightforward process has now been made more complicated due to Brexit, and so there are a number of elements you’ll need to consider to make the process as smooth and successful as possible.
As such, you need more than just an accountant; you need a dedicated business partner who can assist you with all the necessary aspects of your UK investment. Here at Gower Accountancy, we specialise in helping international business owners to gain a foothold in the UK. As multilingual experts in accountancy and all associated business matters, we provide a level of communication and service that you cannot get elsewhere.
We therefore encourage you to book a free consultation – but in the meantime, we have put together this quick guide to help make better sense of what is required for doing business in the UK.
UK VAT Compliance
Before you start any sort of trading, you’ll need to make sure your business is UK VAT compliant. This is very important, as failure to pay VAT properly and on time will result in some big penalties from HMRC. In some cases, you could even be hit with a civil evasion penalty.
Since the UK left the EU, the €10,000 annual turnover threshold for small business no longer applies. Regardless of how much trade you are anticipating, a UK VAT registration will be required for any distance sales between the UK and the EU.
As an international business owner operating in the UK, there is very little margin for error with regards to VAT compliance, and it can therefore be quite a tedious process. In addition to registering for UK VAT as an international, you’ll have to prepare and submit both your UK VAT returns and your EC sales list on an ongoing basis.
The value of having a tax expert handle this for you cannot be overstated. With Gower as your accountants, UK VAT compliance will be one less thing for you to worry about.
Company Structure
One of the first things you need to think about when setting up a business in the UK is your company’s legal structure. Your options are sole trader, partnership, limited company, or LLP. Choosing the right structure is essential; getting it wrong, or setting up haphazardly, can have a huge knock-on effect.
For instance, a suboptimal legal structure may result in you having to pay far more tax than necessary. Moreover, you may end up paying excessive professional fees just to sort things out. An international business operating in the UK with the wrong legal structure can very quickly find themselves in crippling debt.
Your company should be structured in a way that not only gives you control, but also allows you to take full advantage of business schemes and tax reliefs.
Establishing your UK business with the correct legal structure is a standard element of Gower Accountancy’s business support. By helping you with your company structure right from the start, we can save you potentially thousands of pounds in the long run.
Customer Due Diligence
Before doing business with a client in the UK, it is essential to perform customer due diligence to uncover any potential risk to your company. If you engage with someone who is guilty of financial fraud, money laundering, sanction breaches, or even terrorist financing, then you too could end up on the wrong side of the law.
However, to the uninitiated, customer due diligence is a daunting task. You’ve got to know where to look, and the time must be taken to ensure all bases are uncovered. If you are planning on dealing with multiple clients in the UK, then the due diligence alone could end up taking huge chunks of your time and energy.
As accountants with decades of experience conducting overseas due diligence, Gower Accountancy will happily relieve you of this burden. With a few simple yet thorough checks, we can significantly reduce the risk of your business ever running into such trouble, giving you the confidence to conduct all your business affairs in the UK without fear of illegal association.
Bank Account Registration
If you are going beyond just doing business with UK clients, and actually want to set up your own UK business, then you will of course need a UK bank account.
Naturally, there is a great deal of red tape for international business owners to navigate when registering for a UK bank account. The anti-fraud measures are especially stringent, and you may be faced with high admin costs just to overcome them. Once you’ve passed the background and credit checks, you can expect to wade through a lot of bureaucratic paperwork to get things finalised.
Moreover, the requirements and processes for opening a business account vary from bank to bank. Figuring out which bank is best for your business will be tricky if you aren’t familiar with UK banking policies.
But there is no need for you to do any of this alone. Through an understanding of your unique requirements and the most up-to-date policies of all UK banks, the expert accountants at Gower can connect you with the best banking partner for your business.
We will then cut through all the red tape on your behalf, with minimal hassle on your end. Your business will be fully established with a UK bank account in no time at all.
Get in touch today to become established in the UK
These are just some of the things to consider when doing business in the UK. If you are looking to trade goods overseas, you’ll also need to navigate customs clearance, which has become a great deal more complex since Brexit. There is also business insurance to think about, as well as endless taxation and compliance accounting.
Even if you are well experienced with international trade, this is too long of a list for you to manage alone. As mentioned before, the support you receive should extend far beyond the parameters of general accountancy. With a dedicated partner providing you with comprehensive business support, your UK endeavors will have the best possible chance of succeeding.
During your free consultation (which we can conduct in your mother tongue) with the expert chartered accountants at Gower, we will clarify exactly what it is you require, and then propose a package that is right for you – without imposing a service that you do not truly need. Get in touch today to book a meeting, and we’ll show you the way into the UK!
