United Kingdom at a glance – September 2022

These emails are designed for those investing into the United Kingdom and those who have plans to do so. We aim to keep the points short and sweet, and to merely list snippets of relevant but easy to read information.

September 2022

  1. From 1 April 2021 until 31 March 2023, companies investing in a qualifying new plant and machinery asset are entitled to extra tax deductions.
  2. There are various VAT schemes in the UK. The most common three are; the annual accounting scheme, cash accounting scheme and the flat rate scheme.
  3. UK company law does not require that a UK company has a UK resident director – but increasingly banks do.
  4. Normally under the standard VAT scheme, a VAT return is to be submitted four times in a year, but with the use of the annual accounting scheme it is only required to submit one VAT return per year – reducing the administrative burden.
  5. Black cab (taxi) drivers in London have to memorise every street and important building in London within six miles from Charing Cross. This is known as ‘The Knowledge’.
  6. Over the last decade, VAT and corporation tax have contributed 21% and 9% to HMRC’s tax revenue respectively.
  7. If a company is dormant, it is also dormant for corporation tax.
  8. In 2021, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1 April 2023. The small profits rate will apply to companies with profits of not more than £50,000, with marginal relief available for profits up to £250,000.
  9. The Patent Box regime is a tax incentive to businesses to make profits from their patents, by reducing the tax paid on those profits.
  10. There is only a 21 mile (34 km) gap between England and France, and the countries are connected by the Channel Tunnel, which opened in 1994.

This message is not given in the form of an opinion, legal opinion or tax advice. If any of the information provided is of interest or relevance to you or your company we would strongly recommend you contact us or another qualified professional for specific advice. 

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