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)
Cyprus Regulatory Update: Shell Company Definition & Exceptions
The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:
Singapore Variable Capital Company VCC: New Features & Benefits
The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.
Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements
As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.
Challenges of Our Time: Cryptocurrencies & Their Regulation
The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.
The Tax System in Poland: Benefits & Overview
The tax system in Poland is one of the most loyal for both large and small businesses in the country. There are two levels in the system that relate not only to residents of Poland, but also to foreigners. The Polish tax system consists of administrative taxes (duties are paid directly to state bodies) and local taxes (the process is similar to the previous type). Therefore, Poland is one of the European countries with a stable economic position, whose attractive system attracts citizens from neighbouring countries to conduct business within the country. It is the Polish taxation system that is advantageous for businessmen willing to enter the international market.
The reasons of abolition of the Company Secretary in UK Private Companies
The role of Corporate Secretary can be a position in a private sector company or within the public sector organisation. In large, publicly-listed corporations, a Company Secretary is typically named a Corporate Secretary or just a Secretary. The Company Secretary is responsible for the efficient administration of a company, particularly with regards to ensuring compliance with statutory and regulatory requirements and also for ensuring that decisions of the board of directors are implemented.
The Dematerialisation of Shares in the UK: Current Update & Assessment
Business is an area that is continuously developing. An integral part of both business and economics are companies. It is possible to say that companies dictate the conditions of the market to a certain extent. Any public or private company has its own shares; a share is a security that provides a portion of ownership of the company and gives the holder the right to a part of the profits.
Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income
Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.