UK tax question

[boon]

Hi,

What kind of taxes a company have to pay in the UK?

[Lambs]

B,

Companies pay Corporation Tax on chargeable profits from trading or investment activities, and on the sale of most assets which result in a capital gain. There are special rules for loans to and from companies, for dividend income and for the disposal of significant/substantial shareholdings in other companies.

Companies pay payroll taxes - PAYE Income Tax and National Insurance (social security) when employing directors and other employees.

Companies have to account for Value Added Tax in the same way as any other business.

Those are the main taxes which most companies will have to consider. Depending on the nature of its activities, a company may have to pay others.

Hope this helps,

Lambs

[boon]

Thanks Lambs!

I'm planning to relocate my company to another EU country and the UK is among the top choices.

My company's main profile is online education, so basically we sell online services. Currently we have 5 employees that we'll have to lay off here and hire new people once we set things up in the new country.

[Lambs]

B,

May I ask, what is the nature of the education services? There are UK VAT issues around categories of education services and also the delivery of online services generally, particularly where cross-border. (Although they should be broadly similar to what you have encountered wherever you are now, if already in the EC). The Corporation Tax rate is generally favourable, as are the rules for dividend distributions to persons who are not resident in the UK. (The rules for UK residents are, arguably, pretty good as well).

Regards,

Lambs

[boon]

We provide language learning services. Our websites are subscription based, there is nothing to download or deliver. People can purchase subscription packages and learn and practice on the sites until their subscription expires. We currently offer this service in Russia, Spain and Germany. So with each of our language learning system we focus on a particular market.