The United Kingdom is a business-friendly country. It has been ranked at the top of the business attractiveness rankings in Europe for years. This is due to a simple tax system as well as transparent and relatively low taxes. In addition, the UK state institutions are well-disposed towards people running a business. Find out what taxes are like in the UK.
Taxes in the UK
From April 2023, the basic corporate income tax rate in the UK is 25%, however, enterprises whose profits do not exceed £50,000 can pay tax at a lower rate of 19%.
The UK is a country supporting business innovation and, starting from 2023, the R&D relief for SMEs is 85% deductible from corporation tax. The rate of research and development expenditure credit (RDEC) is 20%.
In addition, the annual investment allowance for investment expenditure amounts to £1 million.
There are no local income taxes throughout the UK, however, there exists legislative authorisation to introduce a reduced rate of corporation tax in Northern Ireland.
In the UK, the standard VAT rate of 20% applies to most goods and services, with the exception of domestic fuel and energy as well as some other reduced rate supplies, which are subject to a 5% VAT rate.
Taxes in England – pay attention to:
The UK has left the European Union and the European Economic Area and therefore the movement of capital, services, goods and commodities, and labour, is restricted, hindered or taxed differently than in the EU countries.
Moving abroad is a highly significant step in life. Tax issues should come as the last matter to be considered. Think about where you would like to live, where your children should go to school and where you want to run a business. Only after honestly answering these questions, can you decide which country will be the most suitable for all your needs.
WHAT FORMALITIES DO I HAVE TO COMPLETE WHEN MOVING OUT OF POLAND?
There are many formalities, and they depend primarily on the current situation. The aim should be to completely sever all ties with Poland.
DO I HAVE TO FILE A TAX RETURN IN POLAND AFTER MOVING AWAY?
Tax returns in Poland are submitted by Polish residents or persons earning income in Poland who are residents of another country. It all depends on whether you have successfully relinquished your Polish residence. And if you have, it also depends on the kind of income you earn in Poland.
WILL I PAY TAX IN POLAND BECAUSE OF RELOCATING THE COMPANY ABROAD?
The question is about the broad subject of exit tax. First of all, you need to verify what moving the company abroad actually means. It can be both the relocation of the registered office of the company and the personal move of the entrepreneur – a natural person. The tax implications of both situations may be significantly different.
CAN I TRANSFER THE COMPANY'S ASSETS TO THE DESTINATION COUNTRY TAX-FREE?
The general limit below which you do not have to pay exit tax in Poland is PLN 4 million. Nevertheless, it is always necessary to check this issue because the transfer of the company’s assets to the destination country will not always mean the same thing.
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