The document provides a comprehensive overview of the UK business environment, highlighting its large domestic market, competitive nature, and service-based economy. It discusses practical aspects for setting up in the UK, including VAT and payroll registration, as well as available tax incentives like R&D tax credits and the Patent Box scheme. Additionally, it emphasizes the importance of thorough market research and seeking advice to navigate the complexities of establishing a business in the UK.

2. An Introduction to the UK Business Environment
by Oury Clark Chartered Accountants
10th February 2015

3. The UK Market
Positives
• Large domestic market- 64.1 million people (Spain 47.2)
• Second highest technology spend per head after USA
• Spring board to the world- a great base to internationalise your business.
• Based primarily on services, very little manufacturing
• Therefore we import a vast number of goods
Negatives
• We import a vast number of goods, the market is very competitive
• It is also a very mature market
• To bring a new product to market is comparatively difficult

4. Selling Direct
Approaching a Distributor:
• Be Prepared
• Innovation itself is not enough
• Demonstrate demand
• Unique Selling Points?
• Price point?
• Competition?
• Fulfillment?

5. Setting Up in the UK
• VAT registration
- £81k Threshold
- All online
- Non-UK company can register
• Payroll Registration
- Quick (10 Days)
- Relatively simple to administer
- Required for all UK employees
• Company Formation of a Limited Company
- Quick
- Inexpensive
- No prohibitive capital requirements
- 1 Director, 1 Shareholder minimum
- Signature and process now digital.

6. Tax incentives
What incentives can I get to do business in the UK?
• Grant/ government funding is more limited than in some countries- which comes as
a shock to many clients- but UKTI can help advise on what funding options may be
available.
• We do have a very competitive tax system
• Low overall tax rate- 20%
• R&D Tax Credits
• Patent box
• Creative Sector Tax reliefs- Film, TV, Animation, Video Gaming
• The are also incentives to encourage investment into businesses, such as EIS and
SEIS investor reliefs.

7. Tax incentives
What incentives can I get to do business in the UK?
• Grant/ government funding is more limited than in some countries- which comes as
a shock to many clients- but UKTI can help advise on what funding options may be
available.
• We do have a very competitive tax system
• Low overall tax rate- 20%
• R&D Tax Credits
• Patent box
• Creative Sector Tax reliefs- Film, TV, Animation, Video Gaming
• The are also incentives to encourage investment into businesses, such as EIS and
SEIS investor reliefs.

8. Tax incentives
What incentives can I get to do business in the UK?
• Grant/ government funding is more limited than in some countries- which comes as
a shock to many clients- but UKTI can help advise on what funding options may be
available.
• We do have a very competitive tax system
• Low overall tax rate- 20%
• R&D Tax Credits
• Patent box
• Creative Sector Tax reliefs- Film, TV, Animation, Video Gaming
• The are also incentives to encourage investment into businesses, such as EIS and
SEIS investor reliefs.

9. Research & Development
• Research & Development
– Significant tax incentives for companies
undertaking R&D in the UK
‘An R&D project is one that seeks to achieve scientific or
technological advances. It will aim to advance the overall
knowledge or capability in a field of science or
technology. It will involve significant scientific or
technological uncertainty.’

10. Research & Development
• Two schemes:
1. SMEs get 125% in additional tax credit:
<500 Employees; and, either
Turnover < €100 million; or,
Balance Sheet < €86 million
Therefore a small company spending £1m on R&D gets extra tax deduction of £1.25m
2. Large companies get an additional 30% tax credit.
• If loss making a tax credit (cash back) can be claimed
• Note: R&D has to be directed from UK, but not necessarily performed in UK
nor does the IP need to be owned in the UK

11. Patent Box
• From 1st April 2013:
• 10% tax rate for income from Patents
• UK & European Patents only
• Relief to be phased in over 5 years
11

12. Summary
• BE READY – KNOW YOUR MARKET
• GET ADVICE EARLY
• Use free resources such as London and Partners and UKTI
• Take advantage of tax reliefs available – there is not much
Government funding
• Opening a bank account takes time
12

13. The Oury Clark “Group”
Unlike most professional firms...
we see the whole picture.
• Family run business established in 1935
• A broad and high level of Interdisciplinary
professional skills at our core
• Coordination increases speed and efficiency
and decreases cost
• Specialists in overseas companies establishing
in the UK for 20 years
• Offices in Central London and beside London
Heathrow Airport
13

14. Oury Clark Services
• Tax, audit, statutory accounts, back office (payroll, VAT)
• Immigration, employment, company commercial, property, IP
• Staff benefits, mortgages, pensions, healthcare, investments etc
• Managed bespoke service for all industries
• Development/replacement capital, refinancing, M&A, MBO/MBI
• Individual authorisation, On-going compliance & reporting,
Registration advice and Systems & policy development
• Bookkeeping, Credit control, Management accounting/reporting,
Payment services, Payroll and VAT compliance
14

15. David Rogers ACA
David.Rogers@ouryclark.com
London Office Thames Valley
10 John Street 58 Herschel Street
London Slough
WC1N 2EB Berkshire, SL1 1PG
+44(0)20 7067 4300 +44(0)1753 55 1111