I have a UK company with a branch in another country - what are my UK compliance requirements?

When a UK business creates a branch in an overseas jurisdiction, they will often focus on their compliance requirements in that foreign country, not necessarily their obligation back in the UK.

This is in indeed the correct approach, for example, if a UK company registers a branch in Singapore, they do not need to notify Companies House of this fact at the point of registration.

However, you will need to consider the following for your UK reporting requirements:

• You will need to operate something know as segmental reporting – this essentially means that you need to maintain a separate Trial Balance from your UK operations.
• You will need to incorporate all your income and expenses of your foreign branch producing consolidated accounts before filing your accounts – you can use apps https://accounting.bi/ to help you.
• You will need to account for foreign tax credits within your CT600.

Note – it is important to note that UK companies that fall within the definition of a Micro or Small Business for financial reporting purposes, still need to purpose the consolidation accounting process described above. This is different for Micro or Small Businesses with an overseas subsidiary, that are exemption from need to do this consolidation as they do not need to prepare group accounts.

If you need help prepare your UK accounts and corporation tax, please contact us.