As is well known, Poles can be found everywhere in the world. Many decided to emigrate to Great Britain for economic reasons. According to statistics, about one million Poles legally reside and work in Great Britain. Many of them also have plans to open a business, which brings with it, legal and administrative formalities. Below is a brief guide on how to open a business in the UK, including the costs that such an investment involves.
Registering a company in the UK
As is the case in Poland, Great Britain has several, distinctive legal forms of business activity. By far, the most common form is self-employment, i.e. being self-employed. This is a form of business that requires a minimum of input and formalities. What’s more, according to law, a business can be run for up to 3 months prior to it being registered. The only condition that a person wishing to set up a Solo Trader business must fulfil, is having residency status within the United Kingdom. This means that a minimum of 183 days per year must be spent in Great Britain. After this condition is fulfilled, we can successfully begin our adventure with doing business abroad.
What are the costs associated with doing business in the UK?
Taxes are one of the surest things that happen to us apart from death. It is no different in the United Kingdom. Depending on your income, you must pay tax for the entire year of business operation. The tax rates are different, and dependent on the income generated. If our business generated an income of up to £ 10,600, we are exempt from tax. If our income is between £10,600 & £42,385, our tax rate is 20%. If your annual income exceeds £42.386, then you will be required to pay 40% of your income. In addition to tax, it is also necessary to pay for social security. These amounts vary depending on your annual net income. However, these are not high amounts (12, 32 or 70 pounds depending on your income).
Is it worth starting your own business in Great Britain?
Financial conditions and very attractive, business-friendly concessions make setting up a business in the UK a very encouraging prospect. If we are not sure if our company will succeed in the market, we could just try our hand at self-employment. Thanks to this, we have the guarantee that in the event of failure, we will not incur excessive costs.