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UK Establishment

YE requirements?

I'm talking to a potential client who I've just discovered isnt a uk ltd but rather a uk permanent establishment (established 01.11.16) of a French company.

Gov.uk says that they "may" be required to submit tax returns, but gives no indication of the deciding factor.

Does anyone know?

 

Thanks

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17th Jan 2019 12:34

In this type of situation I have found that generally the commercial decisions need to be driven by the parent entity and their advisers.

It is not always understood that the UK branch or permanent establishment does not have a separate legal entity from the parent and therefore potentially the profits of the parent could be at risk.

There can also be complications regarding the funding of the UK part of the business. It all gets a bit messy.

So my advice would be to refer them back to the accountants who are handling the tax affairs of the French parent. They can then look at whether a UK subsidiary company might be a more fitting entity.

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to TaxTeddy
17th Jan 2019 15:18

TaxTeddy wrote:

... and therefore potentially the profits of the parent could be at risk.

Would you mind expanding on that point a little? Under what circumstances?

Thanks

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