Expanding your US company to the UK? We handle the entity, the tax and the compliance.
Price & Accountants is a London-based, ACCA-regulated firm that sets up and runs the UK side of American businesses — UK Ltd incorporation, Companies House filings, HMRC registrations, VAT, payroll and cloud bookkeeping on Xero — so your US leadership team gets one accountant who understands both sides of the Atlantic.
Everything a US parent needs to trade compliantly in the UK.
- UK Ltd company registered with Companies House, with a registered office and PSC filing
- Corporation Tax, PAYE and VAT registrations handled with HMRC
- Xero cloud bookkeeping and management reporting from day one
- One named accountant who understands US parent-company reporting
A familiar legal system, an English-speaking market of 67 million people, and a timezone that bridges the US and Europe.
The UK remains one of the most straightforward places in the world to set up a trading entity — but "straightforward" only holds if the company formation, tax registrations and ongoing filings are done correctly from the outset. Here is what typically draws American businesses across the Atlantic, and what to plan for.
Market access
A UK entity gives you a local trading address, local invoicing and often easier procurement with UK and EU customers who prefer to contract with a domestic company.
Access to talent
London's engineering, finance and life-sciences talent pool is a common reason US scale-ups open a UK hiring entity rather than relying on contractors.
R&D and innovation reliefs
A UK subsidiary carrying out qualifying development work can claim R&D tax relief on top of ordinary trading deductions — something a US branch alone cannot access.
A timezone bridge
A London office overlaps the US morning with European and Asian business hours, useful for support, sales and engineering teams that need to cover both.
Three ways to establish a UK presence — and why most US companies choose a subsidiary.
The right structure depends on how much UK trading, hiring and contracting you plan to do. We talk through all three before recommending anything.
UK Private Limited Company (subsidiary)
A separate UK legal entity, wholly owned by the US parent. The most common route: it caps UK liability, is straightforward to bank and invoice through, and is what most UK customers and investors expect to contract with.
- Own Companies House registration and filings
- Taxed on UK profits at UK Corporation Tax rates
- Can employ UK staff and register for VAT directly
UK establishment (branch)
An extension of the US company registered at Companies House as an "overseas company", rather than a new legal entity. Liability sits with the US parent, and UK profits are still reported to HMRC.
- No separate UK company number, but still a public filing
- Often used for short-term or project-based UK trading
- Usually converted to a subsidiary once trading scales up
Representative presence
No registered UK trading entity — typically a virtual office, a UK-facing website and contracts signed by the US company. Useful for early market testing, but it cannot employ UK staff on UK payroll.
- Fastest and lowest-cost way to test the market
- Limited ability to contract locally or build UK credibility
- Usually a stepping stone rather than a destination
From incorporation to your first UK payroll run, in five stages.
Discovery call and structure advice
We map your US group structure, UK trading plans and hiring intentions, then recommend a subsidiary, branch or representative presence.
Companies House incorporation
We register your UK Ltd, arrange a UK registered office, file the Persons with Significant Control (PSC) details for your US parent, and appoint directors — a US citizen does not need to be UK-resident to hold a UK directorship.
HMRC registrations
Corporation Tax registration within three months of trading, PAYE if you're hiring UK staff, and VAT registration once you are trading above the threshold or choose to register voluntarily.
UK banking and Xero setup
We help open a UK business bank account and configure Xero cloud bookkeeping, connected to your bank feed and set up to report cleanly back to your US finance team.
Ongoing UK compliance
Annual accounts and confirmation statement to Companies House, your CT600 Corporation Tax return, VAT returns and payroll RTI filings — all managed by a named accountant, all year round.
Corporation Tax, capital allowances and the US–UK treaty, explained plainly.
| Profit band | Corporation Tax |
|---|---|
| Up to £50,000 | 19% (small profits rate) |
| £50,000 – £250,000 | Marginal Relief — effective 26.5% on profits in this band |
| Over £250,000 | 25% (main rate) |
These thresholds are shared proportionally between associated companies, which matters if your UK subsidiary sits under a larger US group — we factor your group structure into the calculation rather than assuming standalone thresholds.
Capital allowances
Most UK subsidiaries investing in equipment, fit-out or technology can reduce taxable profits using: the Annual Investment Allowance (AIA), giving 100% relief on qualifying plant and machinery up to the AIA limit; full expensing, a 100% first-year deduction for companies on qualifying main-rate capital expenditure; a first-year allowance of up to 40% on certain qualifying assets; and, for expenditure that falls outside full expensing, a writing-down allowance of 14% from April 2026 on the reducing balance. We confirm which regime applies before you commit to capital spend.
US–UK Double Taxation Treaty
The treaty prevents the same profits being taxed twice in the US and the UK, and sets reduced withholding tax rates on cross-border dividends, interest and royalties between the two countries.
Transfer pricing
Transactions between your US parent and UK subsidiary — management charges, IP licences, intercompany loans — must be priced on an arm's-length basis. HMRC actively reviews this for US-owned subsidiaries.
VAT registration
UK VAT registration becomes compulsory once your taxable turnover passes £90,000 in a rolling 12-month period, though many US subsidiaries register voluntarily from day one to reclaim VAT on setup costs.
The ongoing filing calendar for a US-owned UK subsidiary.
Confirmation statement
Filed at Companies House at least once every 12 months, confirming directors, registered office and PSC details.
Annual accounts
Statutory accounts filed with Companies House within 9 months of your financial year end.
CT600 Corporation Tax return
Filed with HMRC within 12 months of year end; tax itself is due 9 months and 1 day after year end.
VAT returns
Usually quarterly once registered, filed digitally under Making Tax Digital.
Payroll (PAYE/RTI)
Reported to HMRC on or before every payday once you employ UK staff, plus pension auto-enrolment duties.
PSC and group reporting
Keeping Persons with Significant Control filings current as your US parent's ownership or group structure changes.
US company expansion to the UK — common questions
Can a US company own 100% of a UK subsidiary?
Yes. There is no restriction on foreign ownership of a UK private limited company, and a US parent can hold 100% of the shares of its UK subsidiary from incorporation.
Does a director have to live in the UK?
No. A UK company director can be a US citizen resident anywhere in the world. There is no requirement for a UK-resident director, though you do need a UK registered office address.
How long does it take to register a UK company?
Companies House incorporation itself is typically same-day to 24–48 hours once the paperwork is ready. HMRC Corporation Tax registration and a UK bank account usually add one to three weeks on top.
Do we need a UK bank account?
Not as a strict legal requirement, but in practice a UK account makes VAT, payroll and day-to-day invoicing far simpler, and most UK customers and suppliers expect to pay into one.
What UK Corporation Tax rate will our subsidiary pay?
19% on profits up to £50,000, 25% on profits over £250,000, and an effective marginal rate of 26.5% on profits that fall between those two thresholds, subject to Marginal Relief.
When do we need to register for VAT?
Registration is compulsory once your taxable turnover exceeds £90,000 in any rolling 12-month period. Many subsidiaries choose to register voluntarily earlier to recover VAT on setup and equipment costs.
Is there a tax treaty between the US and UK?
Yes. The US–UK Double Taxation Treaty reduces or eliminates double taxation on many types of cross-border income, including dividends, interest and royalties paid between the two companies.
Can you handle reporting back to our US parent company?
Yes. We run your UK bookkeeping on Xero and can produce reporting packs formatted for a US finance team, alongside the UK statutory filings.
What clients say about working with us
"The whole team now look after three businesses which I am a director of."
Darran Smith"They proactively keep us up to date with regulatory changes that may affect us."
Mikko Tamminen"We have been complimented by external parties about the rigour and quality of our financial operations."
Adam BoastReady to bring your business to the UK?
Book a free 20-minute call and we'll map out the right entity structure, tax registrations and timeline for your US company.