The new post Brexit world – are you trading in the UK, but you don’t have a place of business or a company established in the UK? You might have acquired a UK permanent establishment without intending to do so; what are the implications?

For an overseas company including companies registered in an EEA member state doing business in the UK, there is a risk that it could be deemed to have an established place of business in the UK as far as the UK tax authorities/HMRC are concerned.  The company might acquire a UK permanent establishment without intending to do so, by either establishing a fixed place of business or through the use an agent who has delegated authority to do business on behalf of the overseas company. If you are trading through a website with no place of business or an agent in the UK, you are unlikely to be at risk. However, if you are intending to expand your activities in the UK or indeed you want move beyond more than just an internet presence, it may well be advisable to establish a branch presence in the UK that is registered with the UK Companies Registry – Companies House or indeed to set up a limited liability company in the UK.

• on November 20, 2020