Three Situation of Tax Reporting in Britain and Its Solutions

With the continuous development of the economy, many mainland enterprises want to register companies in the United Kingdom, want to better carry out international trade through British companies, these are very convenient to achieve. Now the process of registering British companies is very simple, which is inseparable from the sound personal credit system of their country. The Registry of Companies is only responsible for examining the completeness of the materials provided by the registrants, not for examining the authenticity of the materials. This trust benefits from the establishment of a nationwide networked personal credit information system in the United Kingdom, as well as long-term personal business credit education. But what do you know about British companies'tax returns?

After registering a British company, tax rates vary according to the specific circumstances. Here are three ways to deal with tax returns in the UK.

First: About whether to pay tax or not. If, after the establishment of a company in the UK, it does not engage in any business activities in the UK and does not have any trade relations with the UK, it does not need to pay any tax. According to the regulations of the UK Revenue Authority, if the company has no business activities or no profit, the company can be legally exempted from tax.

Secondly, to know the details of the tax collection of British enterprises. After the establishment of a British company, the Russian company needs to be registered with the IRS for actual operation or any business activities in the UK; from the successful registration of the company, the company must have monthly income and expenditure records and billing documents, and at the shortest time every three months to declare to the IRS; the company with annual turnover of more than 60,000 pounds must apply for English. National VAT Tax No. The company must pay income tax if its annual profit exceeds Liu Wan, but if the company wants to go public, in general, Yinggu accountants will control the declared profits below 60,000.

Third: Concerning matters related to tax payment. In the UK, companies and individuals are required to pay VAT as long as they buy any commodity. The VAT tax rate is 17.5% of the value of the commodity. If the annual turnover of the company exceeds Liu Wan, they can apply for the VAT tax number in the UK. After receiving the VAT number, the company can enjoy the refund treatment of the UK Revenue Bureau quarterly. Import and export of British products are subject to customs duties, and different goods pay different fees. The registered capital of a British company is no more than 1 million, and there is no need to pay any tax. If it exceeds that, it will have to pay a litmus tax.

Britain is a highly developed capitalist country, one of the four major European economies, whose citizens have a high standard of living and a good social security system. After the company is registered in the United Kingdom, it is necessary to carry out annual inspection and tax return on time and abide by the rules and regulations of the United Kingdom.