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Tuesday
May102011

Tax is a turn-off

As the UK economy limps along and we all look for signs of encouraging stimuli, a recent poll suggests that tax is one of the main turn-off points when it comes to UK business investment.

AccountancyAge.com report (via an online poll) that 75% of respondents cite tax as the main reason for avoiding the United Kingdom. Within that statistic 21% cite tax as the main reason. A mere 4% feel that UK business has bigger issues to concern itself with.  Those issues include the UK's lack of manufacturing capacity and its continued over dependence on service sector industries.

In other tax news, Her Majesty's Revenue & Customs (HMRC) have confirmed that Non-Residents will be restricted when working in the UK. If Non-Residents work for more than 10 days in the United Kingdom,  it is possible that it may impact on their Non-Resident status. While the 90 day maximum stay in the UK remains, the 10 day working limitation may affect individuals who periodically come into and out of the UK for business meetings. The guidelines do not appear to be hard and fast and more formal guidlines can be expected shortly.

"HMRC will generally accept that working in the UK for fewer than 10 days in a year will not by itself prevent an individual claiming that they have made a break with the UK because they are working full time abroad. If more days than this are worked in the UK, whether an indivdual is working full time abroad will depend on their particular circumstances".  

With the long overdue consultation about to begin on the Statutory Residency Test, these guidelines will help provide clarity for taxpayers and their advisors alike.

Are you Non-Resident? Would being Non-Domiciled benefit you? These are common questions for the international entrepreneur. Let St Matthew help you and your business. Go to http://stmworldwide.com/expand-a-business-to-the-uk 

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