NETP or Established

Dear HMRC Admins; I have registered a UK Limited Company in the UK by one of the company formation agents. I am the only director and owner of the company. I am NOT resident in UK. My company has virtual address which is provided by formation agent. I don't have employee in my company. I have read "9. Non-established-taxable-persons (NETPs) — basic information" page and it says; -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- A UK establishment exists if either the: - Place where essential management decisions are made and the business’s central administration is carried out is in the UK. - Business has a permanent physical presence with the human and technical resources to make or receive taxable supplies in the UK We would normally consider a company which is incorporated in the UK to have an establishment in the UK as long as it’s able to receive business supplies at its registered office. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The agent which provide virtual address has human and technical resource and I can use them in order to make or receive taxable supplies in the UK. So, basicly I am able to receive business supplies at my registered office even if it is virtual address and I don't have worker in my company. In my point of view, my company should be considered as established. Could you please confirm if my company is established or NETP? Thanks and Best Regards.

Hi,

HMRC does not accept virtual addresses as HMRC needs a physical address where we could visit should we need to.

If you have incorporated a business in the UK then you will be classed as being established in the UK only if the establishment in the UK is able to receive business supplies at its registered office. If this is the case then you will not be a non established business.

Thank you.

To add to HMRC Admin 19 s comment. You are referring to the basic information only. There are also several other threads on the subject in this forum that give more information. In practice a UK Ltd company registration at a virtual office is not sufficient to be considered UK established for VAT purposes. There is usually a premises where you trade from and will have usually have employees who perform company business.it is this trading premises that should be used to register for VAT as a uk business. It would be very unusual for staff at a virtual office to be acting in any practical way ,such as receiving stock, keeping records etc ,for the many businesses probably registered at those premises. Ultimately it is up to you to ensure you register for VAT at the right time. If HMRC find later that you should have registered but didn’t they can impose penalties and recover unpaid VAT. It is therefore wise to understand what the requirements are for a UK established business. If you can’t meet all those requirements then you would be treated as a NETP. Para 9.4 of that basic guide gives a bit of the information as do some of the other threads. Alternatively seek some professional advice on UK VAT requirements.