Activities in the UK may be conducted using one of a number of business forms. These commonly include:
Each entity is taxed in a different way and each offers advantages and disadvantages depending on a range of factors including:
Broadly speaking, under current tax legislation, a limited company structure is likely to represent the most tax efficient route for a business operating in the UK. However this will not necessarily be the most suitable structure for all businesses. Before incorporating, small businesses should consider other factors, including:
Where merited, additional layers of complexity can be introduced, for example, by creating:
However, it is not the case that every type of structure will be appropriate in all circumstances. We would recommend that a detailed review is carried out before any decisions are taken to set up a new entity or change an existing structure.
If you need advice or would like to discuss how we might assist you, please do not hesitate to contact us.
Thank you very much for your work and your cooperation this year. You and your team are a great help dealing with all our matters that can’t just be done by us from Germany.