Set up an online business in uk: taxation
2 June, 2021
You are a digital business owner, doing:
- Self publishing;
- Affiliate marketing.
Do you know that you can run your business from anywehere in the world, incorporating your ltd company in Uk, remotely, from your home?
Indipendently form your nationality, you can start a business in less than 24 hours in Uk.
Tax benefits of uk company formation
Which are the tax benefits to incorprate a limited company in UK?
Incorporating a ltd in Uk, you have to pay just 19% of corporation tax on your net profits, indipendently from the online business that you run.
Regarding vat, in Uk the standard rate is 20%.
But the vat rules vary in relation to the business that you carry out:
- If you are a self-publisher, selling your ebooks on Amazon Kdp o Audible, you don’t need to apply for vat, because Amazon or Audible will do this for you, paying royalties to your company. So, you don’t need to charge vat on the received royalties.
- If you run an e-commerce you need to apply UK vat on your invoices when you sell to consumers or businesses located in UK. To know all your vat obligations, we strongly recommed to contact one of our specialized consultants.
- if you are a dropshipper, importing goods form China or from other extra UE country, you need to charge vat at the point-of-sale (i.e. your website checkout), if you sell to consumers located in Uk, after reaching the threshold of 85,000 GBP of gross sales in the last 12 months or if your company is already vat registered.
- If you are an affiliate marketer, you need to apply UK vat on your invoices just when you provide your marketing services to an affiliate platform located in Uk. If you sell instead your marketing services to platforms located outside Uk, you don’t need to charge vat.
Form a ltd company in London with ltd24ore
You can open an online UK company in London just in less than 24 hours, through ltd24ore.com.
Here are the advantages:
- Fast online incorporation without a notary;
- online accounting and bookkeeping;
- preparation of company accounts and tax return filing included;
- free access to accounting software based on artificial intelligence;
- assistance via chat, e-mail, telephone;
- consultancy with tax experts.