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bigduckontax, Accountant
Category: UK Tax
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I am a USA company just setting up my systems in the UK to

Customer Question

I am a USA company just setting up my systems in the UK to purchase raw materials and services for a new UK operation.
What detailed information must I have in my system from my suppliers to make sure I have every thing I need to all government reporting.
Thank you
CFO from the USA
Submitted: 5 months ago.
Category: UK Tax
Expert:  bigduckontax replied 5 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Apart from the normal book keeping arrangements you will, if your turnover is going to exceed 83K in any one year, have to register for VAT. You can then reclaim any input tax suffered on your purchases of materials and services. You must maintain adequate documentation to support your trading position. You would be well advised to set up an UK limited company to undertake the project. This puts a buffer between your US company and your UK one. If the trading is likely to be large then yoy may have to employ and manager and other employees to service the activity. This will involve you in wages and the necessity to operate the UK Pay ans You Earn (PAYE) system. Profits made in the UK will be subject to UK taxation either through Income Tax (IT) or if you operate through a corporate structure, Corporation Tax (CT). That is the very basic background of an UK operation. Have a look here for an outline: I do hope that you have found my reply of assistance.

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