Tax burden Ltd England
After the English Limited has been incorporated, and is also registered in the English Chamber of Commerce, the incorporation is shared with the English Tax Authorities (HM Revenue & Customs (HMRC)).
It makes no difference whether the English Limited is actually active or not active. HMRC creates a computer file from the establishment of the English Limited from which a UTR number arises. UTR stands for Unique Taxpayer Reference. This UTR number is stated in all documentation sent to the Limited. First of all, all new Limiteds receive a form CT41G, which describes the corporate income tax in more detail. The information will be sent to the Limited’s English address. Also, in the event that the Limited actually conducts business outside of England, and has a registration in another country, the Limited will receive mail at the registered address in England. It is therefore mandatory for every Limited to keep an English address.
If an English Limited does not actively participate in business, that is to say, does not engage in activities, it will be classified as a “Dormant Company”. The Limited will then receive a corporate tax exemption for a specified period.
In the event that an English Limited is active in the Netherlands, for example, and is also subject to taxation there (VPB), a statement from the Dutch tax authorities is necessary. Such a statement is called a “Statement as a taxable person”. This declaration must be sent in original to the HMRC in England, after which they will give the Limited in England the status “Dormant Company”. In this way, the Limited does not have to file a VPB declaration in 2 countries.