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Common mistakes US businesses make when setting up in the UK

07 September 2020

For companies looking to set up in the UK, there are a myriad of issues that can occur. Read our content series to learn what some of these are and how they can be mitigated.

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RSM is a leading provider of audit, tax and consulting services to middle market leaders across the UK and globally with an office in Reading.

Mike Sables

Office Managing Partner, Reading

Mike leads the accounting, business advisory and outsourcing team for the Reading office, is the regional head of outsourcing chairs the national outsourcing faculty.

'If we send a US employee over to the UK, they won’t need a visa’

If you’re looking to sending an employee over to the UK to set up a new team, have you considered the immigration or income tax implications?

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‘We won’t need a local statutory audit of our financial statements’

Just because the parent company financials are being audited, does not mean the local financials do not need to be. While this area isn’t necessarily cut and dry, what should you be aware of?

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‘We’ll hire our first UK employee as a contractor and assume this won’t have any tax implications for our parent company’

If you hire your first UK employee as a contractor, what are the tax implications for an overseas parent entity?

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‘We can issue US-style 'at will' contracts to our new UK hires’

What are some of the differences between UK and US employment requirements? How can you ensure your contracts for UK employees adhere to UK law?

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‘Our US parent company will just sign the UK lease’

When expanding into the UK, what should the parent company should be wary of before signing an office lease in their name?

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‘If we send US employees to the UK, they can stay on the US payroll’

If you send a US employee to the UK, don’t assume you can avoid all UK fillings by just keeping them on the US payroll.

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