United Kingdom
United Kingdom: 4 company types, its taxes, banking and business environment, and what it is known for.
Forming a company
Company types in the United Kingdom
The 4 forms a founder can choose here, each with its own figures. Open one for its sources.
Forming and closing a Ltd
The headline facts; the steps, requirements and their sources are on its own page.
- Formation fee
- GBP 100
- Days to incorporate
- 1
- Formed remotely
- Yes
- Closing route
- Voluntary strike-off (DS01)
What it is known for
Where United Kingdom is in the world’s top 10 on a measure anyone can check, the best rank first. Only the top is shown; a low rank is never stated.
- World’s1stWorld-leading exports Spirits and liqueurs (under 80% alcohol)Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beveragesUS$9 bn · 21.9% of world exports of 197 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndWorld-leading exports Turbojets, turbopropellers and other gas turbinesUS$32.2 bn · 16.1% of world exports of 189 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndWorld-leading exports Parts of goods of heading 8801, 8802 or 8806US$12.9 bn · 13.5% of world exports of 214 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndTax-treaty network Income-tax treaties in force115 of 100 treaty networks we hold the tax authority's own list (tax-treaties collection) See the top 10
- World’s5thDigital services ICT service exportsUS$65.7 bn of 133 economies · 2025 World Bank, World Development Indicators See the top 10
- World’s9thResearch and technology Patent applications by residents11,105 of 121 economies · 2024 World Bank, World Development Indicators See the top 10
A rank is among everything the source reports for that year, so it moves when the source adds or drops economies. Exports include goods passing through for re-export. Nothing here is a recommendation.
Doing business here
Business accounts
Providers whose own published list of countries names United Kingdom. A listing means a company formed here may apply, not that it will be accepted.
AirwallexAirwallex business accountlist read 8 Oct 2026
PayseraPaysera business accountlist read 8 Oct 2026
- RevolutRevolut Business accountlist read 8 Oct 2026
StripeStripe account (payments)list read 8 Oct 2026
Checked, not listing United Kingdom: Brex, bunq Business, Mercury, Qonto.
Publish no country list: N26 Business, Payoneer, PayPal Business, Wise Business. They may still serve it; ask them.
Payments and payroll
Services for taking payments, paying people and moving money, as each states where a business based in United Kingdom may open an account.
- StripeOpen to a business based herelist read 18 Aug 2026
WiseOpen to a business based herelist read 18 Aug 2026
DeelOpen to a business based herelist read 18 Aug 2026- RevolutOpen to a business based herelist read 18 Aug 2026
AdyenOpen to a business based herelist read 18 Aug 2026SquareOpen to a business based herelist read 18 Aug 2026
For individuals only here: PayPal.
EU listings
Two lists a bank checks when it opens an account for a company or its owner.
- EU high-risk third countries (AML)
- Not listed
- EU non-cooperative jurisdictions for tax purposes
- Not listedOfficial EUR-Lex, 52026XG01465, Annex I as of 2026-02-17
Official sites
The authorities’ own sites for United Kingdom: where to register, file and check.
Blocs and agreements
The trade arrangements United Kingdom belongs to, as each arrangement’s own texts state them: since when, and what each covers. What a membership means for a business is for you to judge.
- EU–UK Trade and Cooperation Agreement
- Free trade area with the European Union · since 1 May 2021
Covers goods, services, establishment, investment, capital, public procurement.
Quote
The Parties agree to provisionally apply this Agreement from 1 January 2021 provided that prior to that date they have notified each other that their respective internal requirements and procedures necessary for provisional application have been completed.
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- Free trade area · since 15 December 2024
Covers goods, services, investment, public procurement.
Quote
any State or separate customs territory may accede to this Agreement, subject to such terms and conditions as may be agreed between the Parties and that State or separate customs territory.
Regional and customs arrangements only, 36 of them; bilateral trade agreements are not yet in our records.
Tax
Company tax
Tax, and what the company owes the registry each year.
- Corporate income tax
- 25%Official OECD Corporate Tax Statistics (combined CIT) as of 2026
- Distributions
- Profit taxed when earned (Corporation Tax)Official GOV.UK (HM Revenue & Customs) as of 2026
Quote
If your company made more than £250,000 profit, you’ll pay the main rate of Corporation Tax.
- Audit
- 2 of: turnover no more than £15m, assets no more than £7.5m, 50 or fewer employeesOfficial GOV.UK (HM Revenue & Customs) financial years beginning on or after 6 April 2025
Quote
at least 2 of the following: an annual turnover of no more than £15 million assets worth no more than £7.5 million 50 or fewer employees on average
- Small-company relief
- 19% small profits rate up to £50,000 profit; marginal relief between £50,000 and £250,000Official GOV.UK (HM Revenue & Customs) as of 2026
Quote
If your company made a profit of £50,000 or less, you’ll pay the ‘small profits rate’, which is 19%.
- Annual obligations
- Confirmation statement at least every 12 months, up to 14 days after review periodOfficial GOV.UK (HM Revenue & Customs)
Quote
file at least one confirmation statement every 12 months. You can file your statement up to 14 days after the review period has ended.
- Annual registry fee
- GBP 50 online (GBP 110 paper) per confirmation statementOfficial Companies House as of 2026
Quote
Confirmation statement fee (with your first statement in the 12 month payment period ) £50 £50 £110
VAT
The tax on what the company sells in United Kingdom, and when it must register, as the tax authority states it.
- Standard rate
- 20%
Quote
The standard VAT rate is 20%
- Other rates
- 5% Some goods and services, for example, children's car seats and home energy
- 0% Zero-rated goods and services, for example, most food and children's clothes
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Reduced rate 5% Some goods and services, for example, children’s car seats and home energy Zero rate 0% Zero-rated goods and services, for example, most food and children’s clothes
- Registration threshold
- GBP 90,000 · about €105,690
taxable turnover; also registration if taxable turnover is expected to go over the threshold in the next 30 days; 12 months rolling
Quote
your total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold)
- Voluntary registration
- Yes
A business with turnover below £90,000 may choose to register voluntarily.
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You can choose to register for VAT if your turnover is less than £90,000 (‘voluntary registration’).
- A foreign company
- Registers from its first taxable supply; no local representative required
A business based outside the UK must register regardless of taxable turnover if it supplies any goods or services to the UK, or expects to in the next 30 days. Appointing a tax representative is optional, though HMRC can direct some non-established taxable persons to appoint one.
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You must also register (regardless of taxable turnover) if all of the following are true: you’re based outside the UK
- Returns filed
- Quarterly
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You usually need to send a VAT Return to HMRC every 3 months.
- Tax authority
- Registration page read 2026-10-22
Tax calendar
When the main returns and payments fall due in United Kingdom, tax year 2026 to 2027, as the tax authority states it.
- Corporate tax return
- 12 months after the end of the accounting period · each year
the deadline for the tax return is 12 months after the end of the accounting period it covers; a return should be filed online.
Quote
The deadline for your tax return is 12 months after the end of the accounting period it covers
- Corporate tax, final payment
- 9 months and 1 day after the end of the accounting period · each year
a company must pay its Corporation Tax 9 months and 1 day after the end of the accounting period — before the 12-month filing deadline.
Quote
You must pay your Corporation Tax 9 months and 1 day after the end of your accounting period
- Corporate tax, instalments
- Not required here
There is no general advance or instalment obligation for corporate income tax: a company pays the whole of its Corporation Tax 9 months and 1 day after the accounting period ends. Instalments apply only where taxable profits exceed £1.5 million — HMRC directs those taxpayers to the instalment rules, which are outside the standard case.
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Taxable profits of up to £1.5 million You must pay your Corporation Tax 9 months and 1 day after the end of your accounting period
- Personal income-tax return
- 31 January · each year
the online Self Assessment tax return must be submitted by 31 January following the end of the tax year (31 January 2027 for the 2025 to 2026 tax year). A paper return must reach HMRC by 31 October of the following year.
Quote
You must submit your online tax return by 11:59pm on 31 January 2027 or you’ll get a late filing penalty
- Personal income tax, final payment
- 31 January · each year
Self Assessment tax is paid by 31 January following the end of the tax year; the balancing payment (the total tax owed less the payments on account) is also due by 31 January of the following year.
Quote
You need to pay your Self Assessment tax by 11:59pm on 31 January 2027 or you’ll get a penalty
- Personal income tax, instalments
- 31 January · twice a year
payments on account are due by midnight on 31 January and 31 July, each half of the tax owed last year (the rule carries the first instalment).
Quote
These payments are due by midnight on 31 January and 31 July
- VAT return
- 1 month and 7 days after the end of the quarter · each quarter
the deadline for submitting the return online, which is also the deadline for paying HMRC, is usually one calendar month and 7 days after the end of the accounting period. HMRC states that the return must be filed and the payment must reach HMRC on or before the deadline even if it is on a weekend or bank holiday, so there is no shift to a working day.
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The deadline for submitting your return online is usually one calendar month and 7 days after the end of an accounting period. This is also the deadline for paying HMRC
- Payroll withholding
- Day 22 of the following month · each month
the PAYE bill is paid by the 22nd of the next tax month where the employer pays monthly (for example 22 May for wages paid in the tax month ending 5 May), and by the 22nd after the end of the quarter where the employer pays quarterly. A payment by cheque through the post must reach HMRC by the 19th of the month.
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You must pay your PAYE bill to HM Revenue and Customs ( HMRC ) by: the 22nd of the next tax month if you pay monthly the 22nd after the end of the quarter if you pay quarterly - for example, 22 July for the 6 April to 5 July quarter
Running the company
Running a company here
What it takes to keep a company in good standing in United Kingdom: the full guide is on each form’s own page.
Running a Private Limited Company (Ltd)
24 obligations for one shareholder who is the sole director, with who may do each, when, and how.
- The director can do
- 23 of its 24 obligations
personally, through the authorities’ own services.
- A professional the law requires
- A licensed auditor — unless the company qualifies as small Statutory audit of the annual accounts
- Not required here
- Annual general meeting · General business or trade licence renewal
Not yet covered: PLC, LP, LLP. Each form has its own requirements.
Economy and trade
What it exports
Goods United Kingdom exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes United Kingdom’s own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars HS 8703 | 6.4% | 8.3% | 8.5% | US$36.2 bn |
| Turbojets, turbopropellers and other gas turbines HS 8411 | 5.7% | 7.2% | 7.6% | US$32.2 bn |
| Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale HS 3004 | 4.4% | 4.2% | 4.3% | US$18.2 bn |
| Petroleum oils and oils obtained from bituminous minerals, crude HS 2709 | 5.5% | 4.5% | 4.0% | US$17.1 bn |
| Gold (including gold plated with platinum), unwrought or in semi-manufactured forms, or in powder form HS 7108 | 6.9% | 6.5% | 3.6% | US$15.1 bn |
| Parts of goods of heading 8801, 8802 or 8806 HS 8807 | 2.2% | 2.6% | 3.0% | US$12.9 bn |
| Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils HS 2710 | 4.0% | 3.0% | 2.8% | US$11.9 bn |
| Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages HS 2208 | 2.1% | 2.1% | 2.1% | US$9 bn |
| Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products; cell cultures, whether or not modified HS 3002 | 1.2% | 1.4% | 1.6% | US$6.8 bn |
| Petroleum gases and other gaseous hydrocarbons HS 2711 | 2.6% | 1.8% | 1.3% | US$5.7 bn |
Total goods exports, 2024: US$423.7 bn. The ten largest headings are shown.