Key Questions Answered

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Key Questions Answered 2016-11-18T12:15:09+00:00
Why we do Anti-Money Laundering (AML) Checks 2017-10-06T15:41:53+00:00

The objective

To learn as much as possible about the legal owners of a UK entity. Where the UK company is a subsidiary of another company we need to determine, for each company, the persons who are the ultimate beneficial owners and the persons who have operational control. We usually undertake this process as part of our setup when undertaking a new client.

Why do we do this?

The financial services industry in UK has been subject to vigorous Anti-Money Laundering Requirements (AMLR) since the introduction of the First Money Laundering Directive in 1991 as revised and codified in The Money Laundering Regulations 2007.

We are required to carry out these checks – they are not optional.

What is involved?

We need to carry out Know Your Client checks which include:-

Details of the nature of business.

An organigram showing the ownership structure so that the ultimate beneficial owners can be identified. We need to know names of persons holding 5% or more of the shares and we will need further evidence for shareholders with a holding of more than 25%. We may need to ask for independent confirmation of shareholdings.

We need to know the names of the persons who have operational control, these will include the directors of the UK company and directors of the parent company.

For each UK director and for each beneficial owner with a shareholding of more than 25% we will need to have:

· Photographic Proof of Identity (such as a passport) and

· Evidence of home address (such as a recent utility bill or bank statement)

Where we cannot physically meet these persons we will need notarised copies of these documents instead.

Upon receipt of these documents

Depending on the answers above we may need to ask for further information. Once documents have been received, we then have to carry out electronic searches regarding possible criminal activity.

What do we do with these documents when the checks are completed

They are retained on our permanent file to be provided as evidence that we have carried out the necessary checks, and have considered the risk assessment, as proof of our compliance with legislation.

How do I register a UK payroll scheme for an overseas company? 2017-07-22T20:15:38+00:00

You need to register as an employer with HM Revenue and Customs to have a UK payroll scheme for overseas company in the UK.

Payroll can be run monthly, which is usual in the UK, or weekly.

As part of running a payroll scheme you are responsible for collecting payroll taxes (PAYE and National Insurance) from your employees’ salaries.

Rates of PAYE and National Insurance change regularly.  Other deductions that can be collected through payroll, if applicable, are Student Loan repayments and pension contributions.

In addition, you will also need to pay Employer National Insurance which is based on your employees’ salaries.

For further information on setting up or processing a UK payroll, see this Simple Guide to Operating a UK payroll for overseas companies.

When are UK payroll taxes due for payment? 2016-04-01T18:10:05+00:00

Payroll taxes are payable to HM Revenue and Customs after the 6th but before 22nd of the month following the payroll date, i.e. for a pay date of 31st March payroll taxes need to be paid after 6th April but before 22ndApril.

For further information on setting up or processing a UK payroll, see this Simple Guide to Operating a UK payroll for overseas companies.

What are full UK statutory accounts? 2015-10-09T15:04:46+00:00

HMRC requires the following to be submitted to them:

  • balance sheet detailing the value of everything the company owns and is owed on the last day of the financial year and must be signed by a director
  • profit and loss account showing the company’s sales, running costs and the profit or loss it has made over the financial year
  • notes about the accounts
  • director’s report.

We can assist you with the preparation of full accounts. Please get in touch.

How long does it take to register for VAT in the UK? 2016-11-18T12:15:17+00:00

This will either be quickly – within 2-3 weeks, or longer, if your application is subject to further checks by HMRC.

If your application is subject to further checks, these can be for a number or reasons, and can be requesting further information surrounding the business, where it trades from, what the business does, and further evidence of support – such as potential agreements with clients and information from directors. HMRC is looking to “verify” that your operation is genuine, and will be trading in the UK – and as such warrants VAT registration.

How long does it take to setup a UK bank account? 2016-11-18T12:15:17+00:00

We advise around two months from start to finish.

Opening a bank account in the UK is seamless for our clients – we complete all the form filling, introduce you to the appropriate bank and begin the conversations with the Relationship Manager.

We know that two months will most likely hinder your traction, so we open a temporary bank account for you in the interim, until your real account is operational.

Do I need to take out any insurance in the UK? 2015-09-07T14:36:53+00:00

Some home territory policy’s cover trading in the UK. If they do not, it can be expensive to add it on to that particular policy.

It is a legal requirement to have Employers and Public Liability insurance. These are two separate policies, but for most startups, a combined policy can be obtained.

You may also need Professional Indemnity Insurance – if you are practicing in a profession that requires this.

Product Liability Insurance is also available.

We begin the conversations on your behalf with an independent broker who can obtain quotations for these policies.

What’s the best type of entity to establish? 2016-11-18T12:15:18+00:00

That depends on what your objectives for the UK/EU are. Why are you establishing here? What are you trying to achieve? Are you looking at taking on any members of staff?

If you are looking to test the market and understand what the landscape could look like, it might be better to register as a branch.

If on the other hand you already have customers/clients and are looking to gain more – it might be more beneficial to set up a Ltd company.

Companies House in the UK – what is it? 2016-11-18T12:15:18+00:00

Under company law, a director holds responsibility for filing certain documents with Companies House in the UK.

Companies House needs to be informed whenever a new director (or company secretary) is appointed or when a director steps down and resigns. They will also need to be told if a director’s personal details have altered (a change in address, for example). This must be done within 14 days.

Other documents that must be filed include the annual return, the annual report and accounts, and changes to the registered company address.

The late filing of accounts can involve penalties of up to £1,500 for private companies and up to £7,500 for public companies.