A fiscal representative in the UK is an assigned third party that handles VAT and other tax duties on behalf of a local company. While not all companies require one, the use of a representative can be mandatory in some cases, as presented in this article by our lawyer in London.
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Who needs a fiscal representative in the UK?
The fiscal representative is appointed in the UK when a company from outside the territory does business within the UK. For example, companies based in Europe that will be distance selling into the United Kingdom of Great Britain and Northern Ireland, will appoint a fiscal representative in the UK who will handle their VAT obligations.
What does the VAT representative do?
Some of the following attributions fall onto the appointed UK fiscal representative:
- Handle the VAT registration or deregistration, as may be required;
- Process and file the VAT returns;
- Pay the due VAT and recover VAT (if applicable);
- Act on behalf of the company as the UK fiscal agent. More information on this role is available upon request from our team.
How does one appoint a VAT representative in the UK?
A declaration, in the format agreed by the HM Revenue and Customs, is filled in by the businesses’ proper representative. This can depend on the business form under which you will be conducting your activities in the UK. We list the following situations below:
- Sole trader: the owner (the sole proprietor) fills in the statement form for appointing the VAT representative in the UK;
- Partnership: one of the partners fills in the form. Regardless of who fills in the form, all partners are required to provide their signatures on it;
- Company: the company director, the company secretary, or another authorised signatory for that corporate body;
- Unincorporated bodies: in this case, an officer or official who applies for the representative on behalf of the unincorporated body. For the purposes described herein, an unincorporated body (or association) is a group consisting of two or more individuals who work together, but without creating a separate legal entity for their activities. Our lawyer in the UK can give you more details.
The following data is included in the form filled in for the purpose of appointing a fiscal representative in the UK:
- Business details: complete information about the company, including but not limited to its full name and business address;
- Representative details: information (such as the full name and address) of the tax representative. The UK-based postal code is also provided in the form, as the tax authorities may need to establish contact with the company’s tax representative.
What taxes does the representative help with?
Value-added tax submission and compliance is a key area in which a tax representative assists its client company in the UK. For this purpose, we highlight the main VAT tax rates for those who will open a company in the UK:
- The standard VAT rate is 20%;
- A reduced rate of 5% applies in the case of some items;
- Some types of goods and services are subject to a zero rate;
- Registration is mandatory when the company’s taxable supplies exceed GBP 90,000 in the previous 12 months;
- Deregistration is possible if the company’s VAT-taxable supplies fall below the value of GBP 88,000.
The registration threshold does not apply in the case of businesses that do not have a place of business in the UK. The role of the VAT representative in the UK is, however, important for all companies, as previously stated.
Our lawyer in England can assist by answering specific information, that is tailored to your non-UK company’s particular situation.
Contact us for more information about the role of the fiscal representative, its appointment, and to find out what the conditions are for these types of services for your business.
