The new financial year is here, bringing new and significant changes to New Zealand’s taxation & payroll. As a business, it is essential to remain up to date on new emerging payroll trends. 2021 comes with a new suite of major changes in employment legislation, and we are here to uncover all the latest… Read more »
Networking is an essential part of professional life. While it might not be crucial in every field, the importance of networking should never be underestimated. So what is networking? Essentially, networking is the act of creating connections with colleagues, clients and experts in your field. There is a perception that networking is a shallow… Read more »
With the world becoming a global village of sorts, more and more businesses are looking to scale-up and dip their toes in international waters. But when looking to expand, the question beckons, “how can one focus on growing a business, as well as make sure it remains compliant at the same time?” The answer… Read more »
There are many advantages to outsourcing your human resources function, especially when you’re a foreign company looking to explore a new market or expand to a new country. While it might initially seem counterintuitive to let a third-party vendor handle a business area as interpersonal as HR, outsourcing it doesn’t actually take away from… Read more »
Now that you’ve found your dream job in France, how do you get shortlisted with that perfect CV? It’s important to remember that every country has its own CV standards to abide to. This may impact the structure, length, and general format among other things. Depending on the industry type, even the tone that… Read more »
Friday, 12 February 2021 marks the beginning of the new lunar year. This year will be the Year of the Ox. The second of all zodiac animals. Also known as Chinese New Year, Spring Festival, or Chunjie (China); Tet (Vietnam); Seollal (Korea); or Losar (Tibet), Lunar New Year is celebrated by about 1.5 billion people around the… Read more »
Do you feel a sense of stigma when negotiating your salary? Feel uncomfortable when placing emphasis on your salary package? This feeling can be magnified in times like COVID-19, when the job market is oversaturated and the future seems uncertain. Whilst this is true, negotiating a fair salary is not only valid and reasonable,… Read more »
We’re thrilled to share that Polyglot Group is now certified for Business France’s Cheque Relance Export! But wait a second… What is it and why does it matter? What is the Cheque Relance Export? For those of you who don’t speak or understand French, “Relance Export” translates to “Reboot Trade”. Unsurprisingly, since COVID-19, businesses… Read more »
Company culture is the heart of a business, a set of shared beliefs adopted by all the people in the organisation and supporting its strategy and structure. According to Deloitte’s research, 94% of executives and 88% of employees believe strong company culture is essential for a thriving business. In today’s day and age, employees… Read more »
On the 30th of January 2020, the World Health Organisation’s Director – General declared a Public Health Emergency of international concern due to the COVID-19 pandemic. This marked the beginning of a domino effect that would shape our current job market. Indeed, the dynamics that once drove the recruitment industry changed dramatically as governments… Read more »
Located off the north-western coast of mainland Europe, the United Kingdom includes the entire island of Great Britain, containing England, Wales and Scotland, as well as a northern portion of the island of Ireland.
The UK only has one land border with the Republic of Ireland and is otherwise surrounded by the North Sea, Irish Sea, English Channel and Atlantic Ocean. Although not necessarily among the largest countries in the world, it is among the largest islands, ranking 8th in the world.
The UK’s population is approximately 66.4 million people as of mid-2018. Growth has slowed in past years, driven largely by migration to and from the UK, something that has remained constant since 2016. The structure of the population is shifting more towards people living longer and having fewer children, as well as an increase in cohabiting families across multiple generations.
The UK ranks as the 9th wealthiest nation in terms of median wealth per capita, at roughly $97,169 per adult. This wealth is increasingly present in the population aged in their 60s.
Although the British economy has faced some challenges since the 2016 Brexit referendum, it maintains a high position in international rankings, as the 6th largest economy in the world.
There is still some uncertainty as to how and when the UK will exit the European Union. This has caused a significant impact on business investment, with negative growth rates in 2019. This trend is expected to continue until all Brexit-related uncertainty is resolved. Consumer spending will continue to drive the economy, as it is predicted to maintain modest growth at 1.4% in 2019, 1.3% in 2020 and a 2.0% trend rate in the long-term.
The UK is dependent on imports for most of its metals, raw materials and food. This has encouraged the government to support free and unrestricted trade with its trading partners and memberships with international trade organisations. This, however, is set to change with the finalisation of a Brexit deal, in which the country will need to renegotiate many of its trade deals. The UK plans to take advantage of this opportunity to establish more favourable terms with its international partners.
Although the UK may experience a trade deficit, it has been able to offset the imbalance with foreign investments. The UK is the second-largest investment destination in the world.
Most of the UK’s largest trading partners are countries within the European Union. The United States and China are also significant partners, together forming nearly 15% of both the UK’s export and import values. The export value in 2017 was $395 billion, while imports came in at $617 billion. The UK is ranked as the 10th largest export economy in the world and the 11th most complex economy according to the Economic Complexity Index.
The country’s main imports and exports are largely the same, consisting of cars, packaged medication, crude petroleum, refined petroleum and gold. The UK does not have an abundance of natural resources, and instead trades in the sphere of manufactured products, importing the raw materials required for production.
Without any concrete decisions made towards Brexit, it is difficult to say exactly how the trade agreements between the UK and the European Union will unfold. For the moment, the UK has signed several trade agreements in preparation for when the country leaves the EU.
These agreements include the Andean countries, CARIFORUM trade bloc, Central America, the Eastern and Southern Africa trade bloc, the Southern Africa Customs Union and Mozambique trade bloc, as well as a few independent countries.
Additionally, the UK has signed mutual recognition agreements with Australia, New Zealand and the United States. These agreements state that the countries involved recognise each other’s conformity assessments in terms of performance standards.
Expanding to the UK? Here is a breakdown of the key things to keep in mind.
The UK presents numerous business opportunities for expanding multinational companies. Setting up a business in the UK can be done through various methods, such as setting up a standalone UK limited company, opening a Partnership company or Subsidiary, or registering a branch / UK establishment.
All employees in the UK are entitled to a basic statement of their terms and conditions within 2 months of starting employment. The contract includes many standard elements such as salary, sick leave, holidays, disciplinary procedure and notice period. Other information regarding the probationary period, benefits and commissions are often included. Employees have several rights including statutory sick, parental leave and redundancy pay. The typical working day hours are from 9 am to 5 pm.
The Tier 2 (General) visa is the most commonly-used visa to employ skilled foreign workers from outside of the EU in the UK. This visa requires the applicant to be offered a recognised, skilled job in the UK by a licensed sponsor. Until the UK leaves the EU, it will continue to have access to its vast talent pool. These regulations will change once a decision about Brexit has been made.
Payroll in the UK operates under a PAYE (Pay As You Earn) system that allows the HM Revenue and Customs (i.e. the national tax authority) to collect income tax and national insurance from employment. Your company’s payroll will need to take this into account when paying your employees. The rate of employer national insurance is 13.8% and is applied to all earnings over 702 pounds per month.
The payroll taxes paid by companies in the UK are equal to the total amount of PAYE, employer and employee national insurance and student loans.
In the UK, the financial year ends on 5th April, but your tax filing deadline could differ depending on your accounting period. The deadline is typically 9 months and 1 day after the end of your accounting period. The main thing to remember is that you need to pay your corporation tax prior to filing for a company tax return.
The UK also has a value-added tax (VAT) that is applied to the final consumption of goods and services. This tax applies to most business-related goods and services and is typically taxed at a rate of 20%. VAT returns must be submitted on a quarterly basis.