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Taxation in the United Kingdom

  • Incorporation time: 13 days
  • Shelf companies: Yes
  • Accounting: Yes
  • Secretary: Yes
  • Nominee Shareholder: Yes
  • Nominee director: Yes
Tax 3%
1 GBP = 1.66 €
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UK Tax Rates

The corporate tax rate is 20% for all british companies and whatever the turnover realized. A reform just been passed, which will come into force in 2020, reduces this rate to 17%. However tax credits are given when taxes are paid abroad. Commercial expenses or charitable contributions may be deducted for tax purposes.

Other taxes are also applicable to businesses, such as national insurance contributions (NIC), if the company has UK employees, and council tax, if the company owns UK property. VAT is levied at a basic rate of 20% with a concession to 5% for certain goods and services, and exemptions on certain supplies such as most foods and children’s clothes.

Personal income tax is tiered and assessed in the following manner :

Tax Bracket (GBP) Tax
0 to 2,440 10 %
2,441 to 37,400 20 %
37,401 to above 40 %

Personal allowances, professional expenses and certain share plans, retirement or savings plans can be deducted for tax purposes.

Links :
HM Revenue and Customs (HMRC)
Tax information

Accounting Overview

British companies must keep accounting records, in which all operations are included, as well as audited annual financial statements consisting of an annual report, a profit and loss statement, a balance sheet, a statement of cash flows prepared in accordance with the principles of GAAP (Generally Accepted Accounting Practices).

Companies having fewer than 50 employees, gross assets below GBP3.26m and turnover below GBP6.5m may apply for an exemption from the requirement to have their accounts audited.

Links :
The Institute of Chartered Accountants in England and Wales
Association of Chartered Certified Accountants
Chartered Institute of Public Finance and Accountancy

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