Taxation Tips For Expats Running A Business In The Uk

Embarking on the journey of entrepreneurship in a foreign land can be both exhilarating and daunting. For expats running a business in the UK, understanding the intricacies of the tax system is crucial for success. This guide delves into vital taxation tips designed to empower you with the knowledge and confidence needed to navigate these waters successfully.

Whether you’re determining your tax residency status or exploring the benefits of different business structures, it’s essential to be well-versed in the UK taxation landscape. This comprehensive overview will equip you with the tools to manage tax obligations effectively while maximizing available benefits, ensuring your business thrives in a new environment.

Understanding Tax Residency

Navigating tax residency is crucial for expats running a business in the UK, as it determines how their income is taxed. Understanding the criteria for tax residency can help business owners plan their finances effectively and comply with the HM Revenue and Customs (HMRC) regulations.The concept of tax residency for expats involves assessing an individual’s connection to the UK to ascertain their tax obligations.

Tax residency determines whether an expat needs to pay tax on their worldwide income or just on their UK-based income.

Criteria for Determining Tax Residency Status

Tax residency status in the UK is primarily determined using the Statutory Residence Test (SRT), which assesses several factors to establish an individual’s residency status. The SRT considers:

• The number of days spent in the UK during a tax year, typically from April 6 to April 5 the following year.
• Automatic residence tests, which include conditions such as having a home in the UK or working full-time in the country for a specified period.
• Connections to the UK, including family ties, available accommodation, and substantive work duties within the country.

Individuals who spend more than 183 days in the UK within a tax year are typically considered UK tax residents. However, the SRT also takes into account other factors for those spending fewer days, which may still result in residency status.

Implications of Tax Residency on Business Income

For expats running a business, tax residency status significantly impacts how business income is taxed in the UK. A UK tax resident is liable to pay tax on their worldwide income, meaning profits from both UK and overseas business activities are taxable under UK law.Expats considered non-residents for tax purposes are generally only taxed on their UK-sourced income.

This includes any business activities conducted within the UK. It’s essential for expat business owners to maintain clear records of their business transactions and seek professional advice to ensure compliance with the UK’s complex tax regulations.

“Understanding your tax residency is fundamental in determining your obligations and optimizing your tax strategy as a business owner in the UK.”

The nuances of the UK tax system require expats to remain informed and strategically manage their affairs to minimize their tax liabilities while adhering to legal obligations.

Business Structure and Tax Implications

Understanding the tax implications of different business structures is crucial for expats running a business in the UK. Each business structure—sole trader, partnership, and limited company—has unique tax obligations, advantages, and disadvantages. Choosing the right structure can significantly impact your tax liabilities and overall business efficiency.When considering business structures, it is essential to compare their tax obligations and benefits.

This comparison can help expats determine which structure aligns best with their business goals and financial situation.

Comparison of Business Structures

In the UK, the main business structures include sole traders, partnerships, and limited companies. Each has distinct tax obligations that can affect the owner’s personal and business finances.

• Sole Trader:A straightforward structure where the business is owned and operated by one person. The profits are subject to income tax.
• Partnership:Similar to sole trading but involves two or more people sharing profits according to their partnership agreement.
• Limited Company:A separate legal entity from its owners, offering limited liability protection and subject to corporation tax on its profits.

Tax Benefits of Business Structures

Choosing a business structure involves understanding its tax benefits, which can be advantageous depending on the business size and goals.

• Sole Trader:Simplicity in accounting and tax reporting. Sole traders can claim tax relief on allowable business expenses, lowering taxable income.
• Partnership:Flexibility in profit sharing and tax filing. Partners can pool resources and share risks, potentially optimizing tax efficiency.
• Limited Company:Ability to retain profits after tax for reinvestment. Limited companies may benefit from a lower corporation tax rate compared to income tax rates.

Business Structure Tax Comparison Table

The following table Artikels the key tax rates, advantages, and disadvantages of each business structure to facilitate informed decision-making.

Business Structure	Tax Rate	Advantages	Disadvantages
Sole Trader	Income Tax (20%-45%)	Simple to set up, complete control, tax relief on expenses	Unlimited liability, personal assets at risk, tax on all profits
Partnership	Income Tax (20%-45%)	Shared responsibility, flexible profit distribution	Unlimited liability, potential for disputes, tax on all profits
Limited Company	Corporation Tax (19% as of 2023)	Limited liability, potential tax efficiency, professional image	Complex setup, strict reporting requirements, possible double taxation

Registering for VAT

Registering for Value Added Tax (VAT) in the UK is an essential step for expats running businesses that meet certain criteria. VAT is a consumption tax added to goods and services, and it plays a significant role in business operations.

Understanding the registration process and requirements can ensure compliance and avoid penalties.The process of registering for VAT involves determining whether your business meets the necessary threshold and completing the appropriate paperwork. This registration is crucial for businesses to operate legally within the UK and to reclaim VAT paid on business expenses.

VAT Thresholds and Mandatory Registration

The threshold for VAT registration is a critical element for businesses to monitor. In the UK, businesses must register for VAT if their taxable turnover exceeds a specific amount over a 12-month period.

The current VAT registration threshold is £85,000 as of 2023.

If your business turnover exceeds this threshold, registration becomes mandatory. Additionally, if you expect your turnover to exceed the threshold within the next 30 days, you must also register. Failing to register when required can lead to penalties and potential legal issues.

Steps for Registering for VAT

Understanding the process of VAT registration can simplify compliance. Below are the general steps involved in registering for VAT in the UK:

1. Determine if your business meets the VAT threshold.
2. Gather necessary business details, such as business name, address, and company registration number.
3. Decide on the VAT accounting scheme that suits your business needs, such as the Standard VAT Accounting Scheme or the Flat Rate Scheme.
4. Register online through the UK government’s VAT registration portal.
5. Receive your VAT registration certificate, which includes your VAT number and details about when to submit your first VAT return.

These steps highlight the importance of timely registration and accurate record-keeping to ensure compliance.

Checklist for VAT Registration and Compliance

Maintaining a checklist for VAT registration and compliance can help ensure your business adheres to all requirements. Below is a sample checklist:

• Monitor your business turnover regularly to assess the need for VAT registration.
• Keep comprehensive records of all sales and purchases.
• File VAT returns and make payments on time, adhering to the quarterly or annual schedule as required.
• Ensure all invoices are VAT-compliant, showing your VAT registration number and the VAT rate applied.
• Understand the VAT exemptions and rates applicable to your business sector.
• Stay updated on changes to VAT legislation that may affect your business operations.

This checklist assists in maintaining compliance and avoiding unnecessary penalties, thereby ensuring smooth business operations.

Avoiding Double Taxation

Double taxation is a scenario where an individual or business is required to pay tax on the same income in two different jurisdictions. This can be a significant concern for expats running a business in the UK, as they might be liable to pay tax both in the UK and their home country.

To mitigate this, many countries enter into Double Taxation Agreements (DTAs) to protect against such scenarios. These agreements ensure that taxpayers are not subjected to tax twice on the same income, providing clarity and relief through specific stipulations.

Double Taxation Agreements between the UK and Other Countries

The UK has an extensive network of DTAs with numerous countries, designed to ensure tax is paid only once on income earned internationally. These agreements typically determine which country has the right to tax various types of income, such as dividends, interest, or royalties.

The primary goal is to prevent dual residency issues and allocate taxing rights effectively.

• DTAs Artikel specific income types and assign taxing rights between the UK and the partner country.
• These agreements often provide reduced tax rates or exemptions for certain types of income.
• Taxpayers can refer to HMRC’s comprehensive list of countries with which the UK has DTAs for specific terms and conditions.

Claiming Relief through Double Taxation Treaties

Relief from double taxation can be claimed by utilizing the provisions Artikeld in DTAs. This often involves applying for a tax credit or tax exemption for the same income in one of the countries.

• Tax credits can be claimed on foreign income that has already been taxed abroad, reducing the tax liability in the UK.
• To claim treaty benefits, individuals and businesses usually need to provide evidence of residence and tax payment to the tax authorities.
• Filling out specific forms, such as the HMRC’s form DT Individual, is often required to claim relief under a DTA.

Preventing Being Taxed on the Same Income in Two Countries

Understanding and leveraging DTAs is crucial for preventing dual taxation. By accurately determining tax residence status and applying the correct treaty provisions, expats can effectively manage their tax obligations.

“Tax residence status determines where you are primarily liable to pay tax, influenced by the number of days spent in each country and other significant ties.”

Method	Description
Determine Tax Residency	Assess your residency status using the Statutory Residence Test and apply the corresponding DTA guidelines.
Utilize Tax Credits	Claim a tax credit for foreign income taxed in another country, reducing UK tax liability.
Claim Exemptions	Apply for tax exemptions on specific income types as stipulated by the DTA.

Tax Deductions and Allowances

Navigating tax deductions and allowances is essential for expats running a business in the UK. Understanding what expenses can be deducted and how to claim allowances effectively can substantially reduce your taxable income, thereby lowering your tax liability. This section will explore common tax deductions available for business expenses in the UK and elaborate on how to claim allowances effectively.Tax deductions in the UK, known as allowable expenses, enable businesses to deduct certain costs from their profit before paying tax.

Recognizing which expenses qualify as deductible and maintaining proper documentation is crucial for compliance and maximizing potential savings.

Common Tax Deductions for Business Expenses

In the UK, businesses can claim a variety of expenses as deductions to lower their taxable profit. These deductions are available to offset the costs incurred in the day-to-day operations of a business. Here’s a closer look at some common deductible expenses:

• Office expenses such as stationary, phone bills, and utilities.
• Travel costs for business purposes including fuel, parking, and public transportation.
• Staff costs like salaries, wages, and employee benefits.
• Marketing and advertising expenses to promote your business.
• Professional fees, such as legal and accountancy services.
• Rent and property costs for business premises.

Proper documentation of these expenses is critical. Receipts, invoices, and other relevant records serve as evidence for these deductions and must be maintained meticulously.

Claiming Allowances Effectively

The UK tax system offers several allowances that can help reduce the taxable income of a business. Understanding how to utilize these allowances effectively can offer significant financial benefits. Let’s look at some key allowances:

• The Annual Investment Allowance (AIA) allows businesses to deduct the full value of qualifying assets, like machinery, up to a certain limit each year.
• The Capital Allowances enable businesses to write off the cost of certain capital expenditures against their taxable profit.
• The Employment Allowance allows businesses to reduce their National Insurance contributions by up to £4,000 annually.

Expense Type, Deductibility, Documentation Required, Potential Savings

Understanding how different expenses qualify and what documentation is necessary can streamline the tax deduction process. Below is a table outlining various expense types, their deductibility, required documentation, and potential savings:

Expense Type	Deductibility	Documentation Required	Potential Savings
Office Supplies	Fully Deductible	Invoices, Receipts	Reduces taxable profit, saving up to 19% Corporation Tax
Travel Expenses	Partially Deductible	Invoices, Receipts, Travel Logs	Potential savings on business travel costs
Salaries and Wages	Fully Deductible	Payroll Records	Lower taxable income, saving on overall tax liability
Advertising Costs	Fully Deductible	Receipts, Marketing Contracts	Up to 19% Corporation Tax savings
Professional Fees	Fully Deductible	Invoices, Contracts	Reduces taxable income, offering tax relief

Maintaining thorough records and understanding the nuances of tax deductions and allowances can significantly benefit expats managing businesses in the UK. Proper application of these tax-saving strategies can enhance financial efficiency and compliance.

Payroll and National Insurance Contributions

Managing payroll and National Insurance Contributions (NICs) is a critical responsibility for expats running a business in the UK. Ensuring compliance with UK tax obligations not only helps in avoiding penalties but also ensures smooth operations for businesses. Understanding how to effectively handle payroll taxes and NICs can save businesses money and time.Employers in the UK are required to deduct income tax and NICs from employees’ wages and pay these to HM Revenue and Customs (HMRC).

NICs are vital as they contribute to state benefits such as pensions and healthcare.

Employer Responsibilities in Payroll Taxes

Employers have several responsibilities when it comes to payroll taxes, which are crucial for legal compliance and financial accuracy. Employers must operate Pay As You Earn (PAYE) as part of payroll.

• Calculate Income Tax and NICs – Employers use tax codes provided by HMRC to determine the correct amount of Income Tax and NICs to deduct from employees’ salaries.
• Submit Real Time Information (RTI) – Employers must report payroll information to HMRC on or before each payday through the RTI system.
• Provide Payslips – Employers are legally required to provide employees with a payslip detailing deductions and net pay.
• Maintain Accurate Records – Employers must keep accurate records of payroll transactions for at least three years.

Calculating National Insurance Contributions

Understanding how to calculate NICs is crucial for employers to ensure compliance and proper financial management.Employees’ NICs are calculated based on earnings above a certain threshold. Employers need to consider various classes of NICs:

• Class 1 – Paid by employees and employers on earnings exceeding the primary threshold (£184 per week as of 2021/22 tax year).
• Class 1A or 1B – These are paid by employers on employee benefits such as company cars.
• Class 2 and 4 – These apply to self-employed individuals, not typically relevant for employer calculations.

National Insurance Contributions can be calculated using the formula: NICs = (Earnings – NICs Threshold) x NIC Rate.

Importance of Maintaining Accurate Payroll Records

Accurate payroll records are essential for compliance and auditing purposes. They help in resolving disputes with employees and provide evidence during inspections or audits by HMRC.Employers must keep records of:

• Employee earnings and deductions – Includes details like gross pay, tax codes, and deducted tax and NICs.
• Pension contributions – Records of any workplace pension scheme contributions made or deducted.
• Benefits and expenses – Detailed records of any taxable benefits provided to employees.

Maintaining precise records ensures that businesses can efficiently manage their payroll systems and respond accurately to any inquiries from tax authorities.

Filing Tax Returns

Filing tax returns is a critical aspect of running a business in the UK, particularly for expat business owners who may face additional complexities due to international factors. Understanding the filing process, adhering to important deadlines, and implementing strategies for accurate submissions can significantly ease the administrative burden and help avoid potential penalties.Expats operating businesses in the UK must navigate specific tax filing requirements, including understanding the distinctions between personal and corporate tax obligations.

This necessitates a comprehensive approach to ensure compliance with HMRC regulations.

The Process of Filing Tax Returns for Expat Business Owners

Filing tax returns involves several steps, from preparing financial statements to submitting the appropriate forms to HM Revenue and Customs (HMRC). Knowing the necessary documents and procedures is crucial for a seamless filing experience.

• Prepare and Maintain Accurate Financial Records: Keep detailed records of all income, expenses, and other financial transactions. This documentation is essential for accurate tax calculations and serves as a foundation for the tax return.
• Determine Applicable Tax Forms: Depending on whether you are filing as an individual or a corporation, different forms may be required. Individual business owners often use the Self Assessment tax return, while companies file a Corporation Tax Return (CT600).
• Use HMRC Online Services: Register for HMRC’s online services to file your tax return electronically. This platform streamlines the submission process and provides timely updates on tax liabilities.
• Seek Professional Advice: Engaging a tax advisor familiar with UK and international tax laws can be invaluable. They can provide guidance tailored to your unique situation, ensuring compliance and optimizing tax liabilities.

Timeline for Important Tax Filing Deadlines

Adhering to tax filing deadlines is crucial to avoid penalties. The timeline below Artikels key dates that expat business owners should mark on their calendars.

• 5 October: Register for Self Assessment if you are a new self-employed business owner or have other untaxed income.
• 31 October: Submit paper tax returns by this date for the previous tax year ending on 5 April.
• 31 January: Deadline for online tax return submissions and payment of any tax owed for the previous tax year.
• 1 April: Businesses with a year-end of 31 March must file their Corporation Tax Return by this date.
• 1 April: Pay any Corporation Tax due. The deadline is typically nine months and one day after the end of the accounting period.

Strategies to Ensure Timely and Accurate Filings

Implementing strategies for timely and accurate tax filings can prevent stress and financial repercussions. Here are some practical approaches:

• Set Up Calendar Alerts: Use digital calendars to set reminders for all key deadlines. Alerts can help you prioritize tasks and ensure nothing is overlooked.
• Automate Financial Processes: Leveraging accounting software can automate data entry and report generation, reducing manual errors and saving time.
• Regularly Review Financial Performance: Conduct monthly or quarterly reviews of your financial performance to identify discrepancies early and make necessary adjustments.
• Stay Informed on Tax Law Changes: Keep abreast of any changes in UK tax laws, as these may impact your filing obligations or tax liabilities.
• Engage with HMRC Resources: Use HMRC’s guidance and resources, such as online forums and webinars, to stay informed and get answers to tax-related queries.

Capital Gains Tax Considerations

Capital Gains Tax (CGT) is a critical consideration for expats running a business in the UK, particularly when selling or disposing of business assets. Understanding how CGT applies to business assets can help expats minimize potential liabilities and take advantage of available reliefs and exemptions.

This section delves into the specifics of CGT applicable to business assets, explores exemptions and reliefs available for expats, and provides examples of situations that may trigger CGT.The UK imposes Capital Gains Tax on the profit realized from the sale of business assets.

This tax is crucial for expats to understand, as it can significantly impact the overall profitability of their business operations in the UK. Expats must be aware of how CGT is calculated and the factors that influence its application.

Exemptions and Reliefs for Expats

Expats can benefit from various exemptions and reliefs that may reduce their CGT liabilities. These provisions are designed to encourage business investment while ensuring fairness in tax obligations.

• Annual Exempt Amount: This allows individuals to make a certain amount of profit from the disposal of assets each tax year without incurring CGT. For the 2023/2024 tax year, the annual exempt amount is £6,000.
• Entrepreneurs’ Relief: This relief can significantly reduce the rate of CGT payable on qualifying business disposals. The relief is available on disposals of all or part of a business and can reduce the CGT rate to 10% on gains up to £1 million over a lifetime.

• Private Residence Relief: If a business asset includes a residential property, this relief may apply, reducing CGT liability if the property was used as the main residence at some point.

Situations Triggering Capital Gains Tax

Understanding common scenarios that trigger CGT can help expats plan and mitigate tax implications effectively.When disposing of a business asset, whether through sale, transfer, or gifting, CGT is typically triggered. Here are some examples of such situations:

• Selling a business property: Selling or transferring ownership of a commercial property used by a business often results in a chargeable gain.
• Transferring business ownership: When an expat decides to transfer the ownership of their business to another person or entity, CGT may apply to the gain realized from the transaction.
• Gifting business assets: Gifts of business assets to family members or others can also result in a capital gain if the market value exceeds the original purchase price.

Understanding and applying the available exemptions and reliefs effectively can result in significant tax savings for expats operating businesses in the UK.

Inheritance Tax Planning

Inheritance tax (IHT) planning is a crucial area for expat business owners operating in the UK, as it influences how much of their estate is subject to taxation upon death. Understanding the intricacies of IHT is essential to minimize liabilities and ensure that more of your estate is passed on to beneficiaries.

Proper planning can significantly impact the amount of tax due and can affect the distribution of both personal and business assets.

Inheritance Tax Implications for Expat Business Owners

For expats, inheritance tax implications can vary significantly depending on their domicile and residence status. The UK levies inheritance tax on estates over a certain threshold, with the standard rate applied to the value above this limit. Being aware of one’s domicile status is vital, as UK domiciled individuals are liable for IHT on their worldwide assets, whereas non-domiciled individuals are only taxed on their UK assets.

• UK Domiciled Individuals: Subject to IHT on global assets.
• Non-Domiciled Individuals: Only UK-based assets are taxed.

It’s important to note that the IHT threshold, or the nil-rate band, is currently set at £325,000, with a tax rate of 40% for assets exceeding this threshold.

Strategies for Effective Inheritance Tax Planning

Effective planning can significantly reduce IHT liability and ensure more of your estate is preserved for beneficiaries. A combination of strategic gifting, use of trusts, and life insurance can be instrumental in IHT planning.

• Gifting:Gifts made more than seven years before death are generally not liable for IHT. Utilizing annual gift allowances can also help reduce the taxable estate.
• Trusts:Establishing trusts can protect assets from IHT, allowing for more control over how and when beneficiaries receive their inheritance.
• Life Insurance:Policies written in trust can provide tax-free funds to cover IHT liabilities, ensuring that beneficiaries are not burdened with substantial tax payments.

Impact of Business Assets on Inheritance Tax Liability

Business assets can significantly affect IHT liability, offering potential reliefs that can reduce the taxable value of an estate. Business Property Relief (BPR) is a key consideration for expat business owners, potentially reducing the value of business assets by up to 100% for IHT purposes.

• Shares in unlisted companies may qualify for 100% relief.
• Assets used in a business, or a part of a business, might be eligible for 50% relief.

Business Property Relief is an essential tool for minimizing inheritance tax liabilities on business assets, making it crucial for expat business owners to understand and utilize this relief effectively.

Utilizing BPR requires careful documentation and adherence to qualifying conditions, necessitating thorough planning and expert advice to maximize benefits.

Professional Financial Advice

Seeking professional financial advice is crucial for expats running a business in the UK, particularly when navigating the complex landscape of UK taxation. Professional advisors provide insights that help maximize tax efficiency and ensure compliance with legal requirements, potentially saving significant amounts in taxes.

They also aid in strategic planning, enabling businesses to allocate resources effectively and plan for future growth.Professional financial advisors offer tailored strategies that cater to the unique needs of expat entrepreneurs. Their expertise spans various financial aspects, including tax planning, risk management, and investment advisory, which are instrumental in maintaining a healthy financial status for your business.

Benefits of Professional Financial Advice

Engaging with a professional tax advisor offers numerous advantages for expat business owners:

• Expert Knowledge: Advisors possess a deep understanding of tax laws and regulations, ensuring that your business complies with the latest legal requirements.
• Tax Efficiency: By leveraging their expertise, advisors can identify potential deductions, credits, and other strategies to reduce your tax liability.
• Risk Management: Advisors help identify and mitigate financial risks, safeguarding your business against potential financial pitfalls.
• Strategic Planning: Providing insights on financial planning and investment strategies that align with your long-term business goals.
• Time Saving: By handling complex tax matters, advisors free up your time, allowing you to focus on business operations and growth.

Choosing a Qualified Tax Advisor in the UK

Selecting the right tax advisor is critical to ensure you receive high-quality advice tailored to your business needs. Here’s what to consider:

• Qualifications and Credentials: Look for advisors who are members of recognized professional bodies, such as the Chartered Institute of Taxation (CIOT) or the Association of Chartered Certified Accountants (ACCA).
• Experience with Expats: Choose advisors with a proven track record of working with expat entrepreneurs and understanding the specific challenges they face.
• Reputation and Reviews: Seek recommendations from other expats and read online reviews to gauge the advisor’s reputation and client satisfaction.
• Fee Structure: Understand the advisor’s fee structure and ensure it aligns with your budget. Some advisors offer fixed fees, while others may charge hourly rates.
• Communication Skills: Opt for an advisor who communicates clearly and is readily available to answer your queries and provide updates on your financial situation.

Questions to Ask a Potential Tax Advisor

When interviewing potential tax advisors, it’s essential to ask targeted questions to assess their suitability for your business. Here are some suggested questions:

1. What experience do you have with expat tax issues and cross-border business operations?
2. Can you provide examples of how you have helped similar businesses optimize their tax position?
3. How do you stay updated with the latest tax laws and regulations?
4. What is your fee structure, and what services are included?
5. How can you assist in ensuring compliance with UK tax requirements?
6. What is your approach to handling complex tax situations?
7. Can you provide references from current or previous expat clients?

By asking these questions, you can better understand the advisor’s capabilities and ensure they align with your business priorities and expectations.

Summary

Navigating the UK tax system as an expat business owner may seem challenging, but with the right knowledge and strategies, it’s entirely manageable. By understanding key aspects such as VAT registration, double taxation treaties, and payroll obligations, you can focus on growing your business with confidence.

Remember, seeking professional financial advice can further enhance your tax planning strategies, ensuring you stay compliant and efficient. Embrace these insights, and let your entrepreneurial spirit soar in the UK!

Essential Questionnaire

What is tax residency and why is it important for expats?

Tax residency determines an individual’s tax obligations in the UK. For expats, understanding tax residency is crucial as it affects the taxation of their global income and business profits.

How can expats avoid double taxation?

Expats can avoid double taxation by leveraging double taxation agreements between the UK and other countries. These treaties allow relief through tax credits or exemptions, ensuring the same income is not taxed twice.

When is VAT registration mandatory for a business in the UK?

VAT registration is mandatory for businesses in the UK if their taxable turnover exceeds the set threshold, currently £85,000. It’s essential to monitor your turnover to ensure compliance.

What are common tax deductions available for expat business owners?

Common tax deductions for expat business owners in the UK include expenses related to travel, office supplies, and employee wages. Proper documentation is key to claiming these deductions effectively.

How can professional financial advice benefit expat business owners?

Professional financial advice can guide expats through complex tax regulations, helping them make informed decisions, optimize tax planning, and ensure compliance with UK laws.