Navigating complexity when setting up in a new territory

1. Keep your eye on growth

Expansion into the UK, or any jurisdiction is usually driven by a strategic plan for growth, or a changing business model. It is vital that the business maintains its focus on this – be this sales leads and customers in a new market; or launching new products and services. However, without a solid foundation these plans can quickly unravel and de-value a business as the price of rectification and missed opportunity unfold.

Getting to grips with new rules and regulations at the same time can also prove tricky. So how can you keep your eye on the ball? We find that many companies often choose to outsource some, or all, of their finance function at this time to ensure requirements are met while keeping maximum flexibility.

2. Get on top of compliance

Global Compliance is increasingly on the business agenda, in part driven by increased complexity and the long-term consequences of COVID-19. In our recent survey “Unlocking Trust: why compliance is on the global agenda”, 38% of respondents cited increased complexity as one of the most significant challenges to compliance over the coming five years.

These factors are exacerbated when expanding internationally into jurisdictions that your team do not have detailed knowledge of. Working with a trusted outsourcing partner gives you access to local experts from day one.

3. Put people first

If no payroll provision or benefits scheme is in place then the first hire can be difficult, on-boarding can be challenging and the initial experience with the organisation may not be at the level expected for that employee. Having a payroll and benefits platform in place can help ensure that key hires are on-boarded smoothly and with it becoming ever harder to recruit and retain the best staff, it is vital their experience is positive from the point they are recruited.

4. Get your tax affairs in order

In our survey, 28% of respondents said that maintaining a positive relationship with government stakeholders was an important objective of their compliance function. It is therefore important to register for the right taxes and ensure they are submitted timely and accurately. As a first step in setting up, companies usually register for VAT and notify HMRC of the intention to trade for corporate tax purposes. This initiates a typical compliance process in the UK of quarterly VAT returns and annual corporate tax returns.

5. Adapt to new technology

Thirty-three percent of respondents to our survey flagged adapting to new technology as one of their biggest challenges with meeting compliance. In the UK there has been a slow move towards digitalisation of the tax system. MTD for VAT has been introduced and compliance can be achieved through use of suitable software to either submit directly or provide a bridge to HMRC. However, HMRC have plans in place to digitise the process further and there is a need to make sure that investments in new accounting software will meet the future requirements of the local tax jurisdiction.

If you are thinking of setting up or expanding your business into the UK or a new territory, we can help. Our outsourcing team bring local knowledge, expertise and support, every step of the way. Knowing that you’re on top of compliance requirements means you can focus on your commercial priorities. 

Book a free consultation