Understanding Different Types of Tax in the UK

Описание: If you're entering the UK market, you need to understand how tax works here. And it's often more complex than it looks. So, what taxes might apply to your business?

All UK companies and overseas companies with a UK presence pay corporation tax on their profits. There are different rates depending on the level of profit, with marginal relief in between. If your company has associated companies, those thresholds are shared between them. Branches or establishments only pay tax on profits that can be attributed to UK activity.

VAT applies to most goods and services. If your taxable turnover reaches the registration threshold, you must register, or you can choose to register voluntarily. For overseas businesses with no fixed UK base, known as non-established taxable persons, the threshold is zero. So you must register from your first taxable supply. There are several VAT rates. The place of supply rules decide if UK VAT applies. For goods, that's usually where they're delivered. For services, it depends on the customer and their location. Once registered, you'll need to charge VAT, submit returns, and keep the right records.

If you employ people in the UK, you'll need to operate PAYE, deducting income tax and national insurance from salaries and paying it to HMRC. Employers also make their own national insurance contributions. So remember to factor that in.

Depending on your structure and industry, you may also need to think about import/export duties, stamp duty, or sector-specific taxes. If you occupy commercial property in the UK, you may be liable for business rates, a local tax based on your property's value.

Getting early advice can help avoid unexpected costs and ensure you're fully compliant. We support international businesses with all aspects of UK tax compliance, from registering for VAT to making sure you meet corporation tax deadlines and filing requirements. Whether you're just entering the market or scaling fast, we'll help you stay compliant at every stage.