Yesterday saw a UK business news article on our website titled ‘Red tape freeze extended‘. It outlines how this would impact British businesses with less than 50 employees. However, I will take this further in context to overseas companies setting up in the UK.
From 2014 potentially qualifying firms will undergo an assessment process to see if they meet the criteria of burdening regulations. UK VAT registration is a common area, which we find just as cumbersome for overseas companies doing business in the UK and the requirements of this. This is compulsorily when the UK turnover reaches £79,000. However in order to obtain registration, this process can be extrapolated due to HM Revenue and Customs conducting extensive checks ensuring the UK operation is bona-fide, and not that of fraudulent activity.
Among other areas is the simplification of record keeping requirements. Earlier this year, HMRC changed the way UK payroll is accounted for. Accurate recording of data through the introduction of RTI Payroll in the UK for overseas companies and UK owned company’s means the payroll data to be sent ‘on or before’ the payment of salaries to the employees is made.
“The Prime Minister pledged further backing for small businesses as he announced that all the recommendations made in a recent report by his Enterprise Advisor Lord Young will be accepted. The Government will make it easier for small businesses owners to access the right advice and support to help them grow.”
These de-regulation breaks will mean the UK continues to remain strong for Foreign Direct Investment – and the ease of doing business here remains competitive once more.
You can read the full article on the Department for Business Innovation & Skills website.