Tax and accounting regulations

Corporation Tax (which includes Capital Gains Tax) is required to be paid by Private Limited Companies based upon their accounts which are submitted to the tax authorities and Registrar of Companies at the end of the financial year. A company is free to choose its financial year end. Companies pay approximately 21% where the net profit before tax does not exceed GBP 300,000. On profits over GBP 1.5 million the rate is 28%. The UK tax system however does offer commercial opportunities to reduce tax payable for those who engage in international business. Further details can be provided on an individual basis.

If the company requires VAT registration then a UK bank account is required. Once the bank account is opened then the VAT application can be processed. If the company is managed from within the UK then an online application can be made, if the company is managed from outside the UK then the application will be done manually. The process takes between 4-8 weeks depending on the method of application.

A Private Limited Company is required to file accounts with the Registrar of Companies and HM Revenue & Customs. However due to the regulations in place over 90% of Private Limited Companies can file abbreviated accounts rather than full accounts due to their size and turnover. The type of filing accounts is dependent on the size of the company and is outlined below.

Small Company Filing Requirements:

The description of a small company is one whose turnover does not exceed GBP5.6 million, the balance sheet total must not be more than GBP3.26 million, the average number of employees must not be more than 50. Small Companies must deliver the following filings to Companies House:

  • Abbreviated balance sheet and notes
  • Special auditor’s report (if required)
  • Small companies are not required to file profit and loss, employees and turnover

Medium Company Filing Requirements:

The description of a medium company is one that meets at least two of the following criteria; annual turnover does not exceed GBP25.9 million, the balance sheet total does not exceed GBP12.9 million and the average number of employees is not more than 250. Medium Companies must deliver the following filings to Companies House:

  • Full balance sheet
  • Abbreviated profit and loss account (no turnover disclosed)
  • Special auditors’ report
  • Directors report
  • Notes to the Accounts
  • Medium Companies are not required to file turnover

Full Company Filing Requirements:

A Private Limited Company must file full accounts when the annual turnover exceeds GBP25.9 million, the balance sheet total exceeds GBP12.9 million and the average number of employees is more than 250. These companies must deliver the following filings to Companies House:

  • A profit and loss account
  • A balance sheet signed by the director
  • An auditors’ report signed by an auditor
  • A directors report signed by a director or secretary of the company
  • Notes to Accounts
  • Group Accounts (if required)

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The UK Persons of Significant Control Register & its impact on companies

The UK Persons of Significant Control Register & its impact on companies

The requirement to maintain a register of people with significant influence or control, more commonly known as the PSC register was introduced to mandate all unlisted companies in the UK, including LLPs and dormant companies to maintain a register identifying those with significant control over a company.

Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law

Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law

This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.

SINGAPORE: the regulation of digital currencies & whats to come

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How to incorporate a company in Cyprus with the required documentation

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ACRA release new initiatives for Singapore Filing Agents

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The servicing of documents to a Cyprus company & failure to act

The servicing of documents to a Cyprus company & failure to act

A Creditor may apply to court for the issuance of a liquidation order against a company that does not comply with a demand notice to pay any outstanding debts. The notice of demand is served to the registered office of the company, who then has 21 days to pay the fine; failure to do so may result in the liquidation of the company deemed unable to pay its debts by the creditor who can apply to legally dissolve the company.

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.