UK subsidiaries must prepare and file annual statutory accounts in accordance with the Companies Act 2006 and UK accounting standards. Accounts are normally due nine months after the year end, and must be filed both with Companies House and HMRC. Depending on size, the company may also be required to have its accounts audited.  

All UK tax-resident companies are subject to corporation tax on their worldwide profits unless exempted by a double tax treaty. Corporation tax returns (CT600) must be submitted electronically, together with iXBRL-tagged accounts and computations. The standard corporation tax rate is currently 25%, with payment generally due nine months and one day after the end of the accounting period.  

VAT returns are normally filed quarterly, though monthly or annual accounting is permitted in certain cases. Returns must be submitted online using Making Tax Digital (MTD) compatible software, and payment deadlines are set one month and seven days after the end of the VAT period. Companies trading internationally should also consider place-of-supply rules and import VAT procedures.  

Where staff are employed, payroll must be operated under the PAYE system. This requires the calculation and deduction of income tax and National Insurance from employee pay, together with employer’s National Insurance contributions. Real Time Information (RTI) submissions must be filed with HMRC on or before each payday. Employers must also comply with workplace pension auto-enrolment obligations.  

Companies with cross-border activities should ensure that intercompany charges are properly documented for UK transfer pricing purposes. HMRC expects transfer pricing policies to be reasonable, consistent, and supported by written agreements. Where international employees are seconded to the UK, payroll and tax reporting obligations may arise even if remuneration is borne by the overseas parent.