Hi everyone,
A new client has approached me to help them with their company accounts. They have been operating in far east for the past 4 years.
The director is non-British, non-resident, and not ordinarily resident in the UK. Apart from the company's registered address, it has no ties with the UK, all trade and central management is performed in far east.
The issue is that for the past 4 years the company was declared as dormant by their previous accountant, but it has been trading all along, although not in UK. I am sure if a UK incorporated company is trading regardless of its trading location, its liable to UK corporation tax and its a trading company.
Your thoughts and comments please.
Thanks
Jai
Replies (4)
Please login or register to join the discussion.
Personally, I'd give it a miss. Even if all is above board, can't see it being anything but a pain.
You'd also need to have some knowledge of the local requirements for the business, presumably, and the UK issues for overseas businesses.
Another vote for the barge pole
I think it is going to be more trouble than it is worth & with a risk that you are being duped.
First you have to get satisfactory ID for the company (easy!) & for the beneficial owners of it (less easy).
Then you have to prepare accounts from whatever records in whatever currency are presented to you.
Then you have to sort out whether there are any UK tax implications.
Then you have to file at Companies House.
I would be concerned that this is an attempt to establish a 'history' as a UK based trading company prior to defrauding suppliers in the UK.
But I always was a miserable suspicious old goat!
How did they choose you to instruct?
RM