Doing business in UK

General Aspects
 Incorporation

Other areas of advice

Incorporation / Registration:
Legal Structure

Limited Liability Partnership

 Sole Trader
(Self employed)
• Within three months of starting up: “register”. Go online, telephone a
help line, or fill in an application form

• National Insurance: Pay Class 2 Flat rate of £2.80 a week

• Personal Allowance: 2016-17 £11,000.
• Income Tax rates and taxable bands
2016-17 2015-16
Basic rate: 20% £11,001-£43,000 £10,601-£31,785
Higher rate: 40% £43,001-£150,000 £31,786-£150,000
Additional rate: 45% Over £150,000 Over £150,000
• Extra Class 4 NIC at 9% (£8,060-£43,000) and 2% over £43,000
 Setting up a Company
Limited by guarantee
• Does not have a share capital or shareholders,
instead has members who act as guarantors.
• Produce “Articles of Association”.
• Reg: Companies House: 1 trustees (minimum)
• Reg: Charity Comm: 2 trustees (minimum)
• Club, charity, associations, cooperatives, and
non-for-profit organisations use it to:
– 1. Protect assets
– 2. Provide separate legal identity
 Setting up a Private Company
Limited by Shares
• Registration with Companies House. Company’s name,
Officers, registered address.

• Deliver: an annual return to Companies House

• Corporation Tax: 20% (For SME)

• Marginal relief on profits between £300,000 and £1.5

million
 Limited Liability Partnership
• Incorporated by: 2 or more persons (individuals and/or
companies).
• Registration with Companies House
• Difference between an LLP and a limited company?:
The main difference is that an LLP has the
organisational flexibility of a partnership and is taxed as
a partnership. It is to say it pays no UK tax but its
members do in relation to the income or gains they
receive through the LLP
• Must deliver an annual return to Companies House.
• Keep its accounting records for 6 years
Incorporation
Management and Administration

• Keep proper accounting records. 6 years

– 1. Income, sales list
– 2. Purchase and expenditure list
– 3. Receipts and invoices
– 4. Bank statement

– Note: avoid personal payments

Incorporation
 Taxation
TYPE BASED ON COMPANIES SELF EMPLOYED SUBMISSION

PAYE   Employees YES YES Monthly

PAYE EMPLOYEE TAX 20%
  NIC CLASS 1 12%

PAYE EMPLOYER NIC CLASS 1A 13.80%

VAT   Sales YES YES Quarterly

VAT: Mandatory: Turnover over £83,000. Voluntary regist.  

Rate: standard @ 20%. Exempt. EU. Scheme (flat rate)  

INCOME TAX Profit NO YES Annual

CORPOR TAX Profit YES NO Annual
Sales 29,850 29,850      
less:  
Salaries 12,000  
Rent 5,600  
Purchases 8,900  
etc.   26,500  
  PROFIT 3,350 20% Limited companies
   
      Next slide Self employed
 Sole trader
(Self employed)

• Personal Allowance: 2016-17 £11,000.

2016-17 2015-16

Basic rate: 20% £11,001-£43,000 £10,601-£31,785

Higher rate: 40% £43,001-£150,000 £31,786-£150,000

Additional rate: 45% Over £150,000 Over £150,000

 Incorporation

Other areas of advice

 Other areas of Advice
• Our clients non for profit organisations and all
type of Business services, product development
and commercialization
• Chartered Certified Accountants and Auditors
• Business facilitator
• Legal risk assessment: contracts, compliance,
wills
• Wealth management:
1. Property investment
2. Estate planning
3. Insurance
Thank you for your attention

plan@xtrategy.co.uk
Tel. 020 8150 6244
Patricia Giraldo ACCA