Business Taxes for Expats Living in London
The UK has one of the most open economies globally, a highly skilled workforce, access to capital markets and first-class infrastructure. It has long been regarded as one of the business and banking capitals of the world.
The UK tax system is based on self-assessment. This means that the business is responsible for calculating their taxable profits and paying the calculated tax to Inland Revenue without prior assessment.
UK Company tax’s current rate of 20%. Some companies qualify for rebates and exemptions.
A company will be liable to pay tax if it is a UK tax resident. A company will be a UK tax resident if it is incorporated in the UK or its central management or control is in the UK.
Aside from income tax, business may also be liable to pay other types of taxes, such as capital gains tax. From 6th April 2008, the Government has applied a flat 18% rate on business disposals. However, the “entrepreneurs’ relief” scheme allows business owners to pay a reduced rate of 10% on business disposals up to a lifetime allowance of £10 million.
It is important for an expat setting up a business in London to work with a locally qualified tax professional to ensure that they understand and comply with all their obligations under the law. Our Expatland E-team member are experts in local as well as international tax and will ensure that you and your business are looked after.
With a client centric culture combined with strong accounting and commercial expertise, geographical knowledge and client empathy, Kingston Smith is an award-winning top 20 firm with 95 years origin.
With their award winning service and trusted experience that spans decades, there’s no better firm to help you start and grow your business in the UK than Kingston Smith.
Contact Person: Mike Scoltock