April 21, 2022
April 20, 2022
Accounting and business advisors James Cowper Kreston release their 2022 spring statement as the Chancellor addresses the backdrop of the rising inflation.
This includes an interesting read on the most recent economical changes in the United Kingdom. Also, a knowledgeable insight into national insurance rises, fuel duty and taxes.
April 19, 2022
Clive Owen LLP, chartered accountants and business advisers have appointed David Baggaley as a fifth Tax Partner at the rapidly growing firm.
David joins the firm, which has offices in Darlington, Durham, Middlesbrough, and York, from EY where he was an associate partner leading the private tax team in the North East and Yorkshire providing tax advice to both corporates and individuals.
A chartered accountant and chartered tax adviser with many years of experience in UK taxation, David spent time on secondment to EY’s offices in Bangalore, India and Edinburgh gaining valuable knowledge. He also has a keen focus on business development through networking.
Across the four offices currently, the firm now employs 117 people. The Clive Owen tax team has four tax partners, nine fully qualified chartered tax advisers and four trainee-chartered tax advisers, within the 17 strong team, making it one of the largest independent tax teams in the region. In addition, further appointments are set to be made in the coming months to add further depth to the tax team.
Growth is something very much on the agenda for the firm. They opened their fourth office on Riverside Park in Middlesbrough earlier this year with a 20-strong team at the 3,000 square foot site. The new office will provide more space to grow the business across the Tees Valley where they already have a significant number of existing clients and an appetite to develop further.
David Baggaley said:
“I am very pleased to be joining such a well-respected firm as Clive Owen. The firm has an entrepreneurial client base which I know I will very much enjoy working with.”
“It is a very exciting time for Tees Valley with Freeport status and the Treasury and other Government departments which are relocating part of their functions to Darlington. Clive Owen is very well placed to take advantage of the resurgence of the area, and I am looking forward to playing my part in this.”
Gary Ellis, managing partner said:
“David is an exceptional appointment who will further strengthen our excellent tax team. The firm has won a significant amount of new client work and seen an increase in demand from existing clients for tax advisory projects including re-organisations, R&D tax relief claims and inheritance tax advice and a tax partner of his calibre will help support the firm as we drive further growth.
I’m delighted to welcome David to the Clive Owen team at such an exciting juncture for us. His expertise and experience will be an asset as we develop the partnership going forwards”
April 17, 2022
The Marshall plan initiative, created by members of Kreston Ukraine, is a critical part of economic recovery. A robust strategy will give the economy a chance to recover when the war one day comes to an end.
Liza Robbins, Chief Executive, Kreston Global and Sergey Atamas, Managing Partner, Kreston Ukraine report.
Andrew is an experienced qualified chartered accountant who specialises in the technical and quality aspects associated with professional services in an international environment.
Andrew previously held the role of Technical Manager at RSM International and is proactively involved with several industry bodies as a member of the ACCA Global Audit Forum and The Transnational Auditors Committee (TAC).
April 14, 2022
Andrew Collier our Director of Quality and Professional Standards, Kreston Global comments regarding whether audit firms should be prevented from cross-selling consultancy services to audit clients. Read here.
April 12, 2022
We are delighted to welcome Nicoletta Iodice, who joined us recently as the events manager. This important role was created in response to several developments, including the move to hybrid events and return to more in-person events, an ambitious event schedule to accommodate a growing need and our focus on ESG. Nicoletta will manage the full Kreston event programme and strategy. Nicoletta comments,
“I am Italian, but I have been living in London since 2014 delivering worldwide events for membership organisations – from exclusive dinners to conferences, summits, and award ceremonies. I thrive in multicultural and diverse environments where I can learn something new every day and get to know different people and cultures. I am still very fussy about my pizza, but also love Sunday roasts, Scotch eggs and absolutely adore any type of dumpling – from pierogi to gyoza. Sustainability is very important to me and I look forward to contributing to Kreston Global’s purpose by improving our events’ environmental impact.
With its global scope, diverse membership and focus on positive impact, Kreston seems like the perfect organisation for me and I am very excited to be part of this Global network.”
April 5, 2022
April 4, 2022
March 23, 2022
March 11, 2022
Investment in Spanish property, particularly by British investors, has been growing in popularity since the early 2000s, as expats look to retire in the sun, or spending cold winters in Spain and returning in the Spring.
This common practice could be subject to double taxation rules and those looking to invest in Spanish property should consider how long they intend to stay at the property to determine the Non-Resident Income Tax (NRIT). Habitual residency is defined as spending more than 183 days in Spain during a calendar year or when the main core or base of their activities or economic interests is located in Spain. Residency in Spain is assumed when the spouse and minor children are habitual residents in Spain.
Researching tax residency and any double taxation laws between the domicile country and Spain is critical before buying or selling property, however, double taxation treaties signed by Spain tend to claim tax on the sale of a property, in accordance with the Non-Resident Income Tax (NRIT).
NON-LEASED PROPERTIES
Next, a distinction must be made between leased and non-leased property. Residential property can be subject to Personal Income Tax (PIT), meaning that non-residents must declare them each year as real estate capital gains:
It should be noted that the tax rate for citizens of the EU and European Economic Area (EEA) states is 19%, with effective exchange of tax information (Iceland and Norway). For all other taxpayers, the tax rate increases to 24%.
LEASED PROPERTIES
Rates as above, but commercial properties must pay withholding tax to the Tax Authorities on rent. This withholding tax, 19% in the case of EU citizens or Iceland and Norway and 24% in all other cases, will exempt the owner from making the aforementioned quarterly declarations. Rental-related expenses are tax-deductible for EU citizens and Iceland and Norway.
The 60% reduction provided for in the PIT is not applicable to income from rental housing and that is per property, so it is not possible to offset them.
Value added tax (VAT)
Non-resident landlords, subject to VAT, are defined as
VAT will be charged at 10%, will need to register and file VAT returns quarterly.
a) Renting to a long-term tenant is VAT exempt.
b) If the rental of the property is not exempt, the Central Economic-Administrative Court in its ruling of 20 November 2016 applies, endorsed by the Directorate General of Taxation in various consultations (CV1145-17, CV2915-17 and CV 2897-18). VAT obligations therefore only apply to long term rental agreements. Simply owning a property in this instance does relieve landlords from VAT. Rental of subject and non-exempt leases (offices, commercial premises, warehouses, etc.), are as follows:
Usual VAT recovery on purchase and maintenance of properties apply, depending on if the non-resident is established or not in Spain:
a) Non-resident/permanent establishment – should input tax paid in the VAT forms that he/she files periodically (form 303).
b) Non resident/non permanent establishment- should apply for a VAT refund through the non-established refund procedure:
For further tax advice on the selling of Spanish property, please visit our Spanish member Kreston Iberaudit website, here.
Kreston Global is still the 13th largest network in the world.
Kreston Global’s Network ranking has just been published by the International Accounting Bulletin, and remains at 13th in the World, thanks to worldwide revenues of $2.6bn, an 8% increase on last year’s figures of $2.4bn. The rankings cover the financial year period of 2021.
“A very good result for the Network, particularly against the Covid backdrop “ commented Liza Robbins, Chief Executive, noting that a number of new firms had joined Kreston in late 2021/early 2022 so were not included in the Kreston 2021 revenue figures. “We feel that 2022 is shaping up to be a transformational year for Kreston Global, with many new firms coming on board and exciting new initiatives in the pipeline.”
Click here for more IAB ranking information on Kreston Global 13th largest network position – you do need to be a subscriber to access the tables.
March 7, 2022
Kreston Global condemns the war in Ukraine and the violation of international law. We are deeply troubled at the terrible impact on innocent people in Ukraine, Russia and Eastern Europe, and we stand by all people suffering from oppression anywhere in the world. We very much hope for a quick and peaceful resolution to this tragic situation.
We can confirm that Kreston Global does not have any member firms operating in Russia. Our member firm in Ukraine – Kreston Ukraine – has understandably been impacted by the current situation, and we are doing everything we can to support their team during this difficult time.
Accounting firms play a critical role in ensuring relevant economic measures and sanctions are applied effectively. To do so, our firms are encouraged to use resources available from professional bodies and government departments in their respective jurisdictions and to seek guidance from Kreston Global. As trusted advisors, our member firms will continue to support clients as they manage the significant disruption that these changes will bring.
Kreston Global firms from around the network have been in touch with offers of support. Kreston Ukraine has set up a fund to support its employees at this time. If you are a member and would like to offer support, please contact us here.
March 3, 2022
BANSBACH adds BDO firm to Freiburg team, GERMANY –
Kreston Global member firm, BANSBACH, has added another location in Freiburg, growing the audit offering. BANSBACH currently has over 400 employees across 9 offices across Germany.
The newest acquisition, which brings 11 audit and tax consultant professionals, including Alexander Friedemann is a certified public accountant and tax advisor with almost 30 years of
experience and Steffen Walter, who has over 20 years of experience at a “Big 4” company and BDO in auditing individual and consolidated financial statements.
This announcement comes on the heels of the merger with O&R Oppenhoff & Rädler AG in Munich. This was completed in the summer of 2021 and saw 45 employees added to the company as part of an ongoing growth strategy.
The new Freiburg office will support a growing need for tax declaration and structuring, consulting, auditing and corporate finance in the area.
Hanns-Georg Schell, Managing Partner of BANSBACH and head of the Freiburg office comments,
“We are pleased about the reinforcement in Freiburg and are convinced that the colleagues will be an excellent reinforcement for our entire company.”
February 22, 2022
UK-based Kreston Global firm, Kreston Reeves, has strengthened its Private Client Tax team with the appointment of a new director.
Experienced tax specialist Paul Webster brings to the firm more than 30 years of experience working with high-net worth individuals.
Laurence Parry, a Partner in the Private Client Tax team at Kreston Reeves said: “We provide individuals and their families with a full range of tax, legal and wealth planning services, and the demand for advice and guidance in an uncertain world continues to be high.
“We are delighted by Paul’s decision to join Kreston Reeves. His experience and track record complement our offer to clients and we look forward to the contributions he will bring.”
Kreston Global has advisors in 120 countries globally that can work with high-net worth individuals to offer private tax and financial planning advice. Each country has complex tax residency and legislation that can impact effective wealth management.
Member firm wealth management services include:
Find your nearest firm here.
February 2, 2022
Immigration partner Kelvin Tanner, from law firm Charles Russell Speechlys (a member of Expatland’s London E-Team of global mobility specialists) answers key questions about moving to the UK.
To get international assistance in relocating from London, contact Kreston partner Ian Miles.
Charles Russell Speechlys is a leading law firm headquartered in London with UK regional offices and international offices in Hong Kong, Dubai, Bahrain, Qatar, Geneva, Zurich, Luxembourg and Paris. We combine specialist business law and private wealth advice internationally and our award-winning Immigration team assists clients with every aspect of their UK immigration journey, from initial discussions about the best visa type for them through to extension, permanent residence and citizenship applications.
As immigration lawyers, we’re often asked about more than just the technical requirements of a particular UK visa. Relocating abroad is a major decision and one which requires careful consideration and planning. UK Immigration is complex and the rules and processes created by the UK government change constantly.
In this article, we run through the 10 of the most common questions our clients ask when they are looking to move to the UK.
The UK has a broad range of visa categories, all with specific eligibility requirements. The best type of visa will depend on what you are trying to achieve. Key factors to consider include: whether or not you wish to work or establish a company in the UK, what level of funds you have available, whether a partner and/or dependant children will be relocating with you, how much time you plan to spend in the UK and whether your ultimate goal is permanent residence or British citizenship.
Many individuals who are relocating to the UK for work, for example, will do so via the Skilled Worker visa route. This allows the individual to work in a specific skilled role and to change employers, but it does require a job offer and sponsorship from a licensed UK business. It can also provide a path to permanent residence in the UK after a period of 5 years.
High net worth individuals often make use of the UK’s Tier 1 Investor visa route, which is available to those that have at least £2 million available to invest into corporate bonds and equities of qualifying UK registered companies. The advantage of this route is that it offers the visa holder complete flexibility as to whether they work, engage in business, study or simply spend time living in the UK. It also provides a path to permanent residence.
We would always recommend that you take legal advice tailored to your specific needs and goals, so you can trust that you’re on the right immigration path from the outset.
A very common scenario we see is a senior executive based overseas being transferred to their employer’s UK office, either permanently or for a specific time-limited secondment. Usually, their employer’s UK entity will provide sponsorship under either the Skilled Worker or Intra-Company Transfer visa route.
Both these visa types, and indeed almost all UK visa routes, allow for a main applicant to bring a partner and/or children under 18 with them as dependants. Partners must be a spouse, civil partner or an unmarried partner who has lived with the main applicant for at least 2 years prior to the visa application. Evidence of relationship is required for both a partner and children’s applications and the family must intend to live together throughout their time in the UK. Dependant visas are generally granted for the same period as the main applicant.
It is not usually possible to bring your parents, siblings or adult children to the UK unless you hold permanent residence or British citizenship and subject to meeting a very high threshold under the Adult Dependant Relative route.
The answer to this is usually ‘Yes’ but it will depend on the type of visa they have. Most dependant partner visas allow the holder to work in the UK with very little restriction. If your partner is looking to work in the UK then this is something to factor in at the outset, along with consideration of what sort of work they plan to do, to make sure their proposed visa will facilitate it.
Children who have dependant visas can attend any sort of school in the UK, including free state schools and independent fee-paying schools, without needing prior sponsorship from the school.
Licensed independent schools can sponsor children for a Child Student visa, which is not reliant on any visa their parents may have. It may be possible in those circumstances for one parent to apply for a Parent of a Child Student visa to join their child in the UK, subject to specific eligibility criteria and provided the child is under 12 years of age.
Licensed UK colleges and universities can sponsor students aged 16 and over to study specific courses in the UK on a standalone Student visa. Sponsored students may be able to bring their own partner and/or dependant children with them, depending on the level of the course.
Again, this will depend on what type of visa you have. The Skilled Worker visa does allow an individual to change employers but they will require sponsorship from the new employer. It is also possible to change to a different role with the same employer, provided the new role falls within the same occupation classification or new sponsorship can be issued. Other visa types, such as the Tier 1 Investor visa, Global Talent visa or UK Ancestry visa, do not have any restriction on the type of work you can do or who you can work for. On the flip side, others such as the Innovator visa, have much more stringent rules.
During the pandemic many people found themselves stuck or choosing to locate themselves outside of their home country. This led to an increase in enquiries from employers and individuals as to the permissibility of remote working. The general position in most countries is that whilst some remote work such as checking and sending emails may be permitted whilst someone is visiting, this should be incidental to the main purpose of their visit. If someone intends to work remotely from a country in which they have no existing right to work, this will usually constitute productive work and require a work visa. This is certainly true of the UK.
It is important that employers have a policy on remote working as in addition to raising potential immigration issues, there can be tax and employment law implications. If you have any concerns about this then you may wish to seek specialist legal advice.
Most of the most commonly used visa types, including Skilled Worker, can lead to permanent residence in the UK if certain eligibility criteria are met. Most require the completion of a continuous 5 year residence period in the UK, during which absences should not exceed 180 days in any 12 month period. There is also an English language requirement to be met and you must pass the Life in the UK test. Dependant partners and children can also apply if they meet the requirements. Note that the Intra-Company Transfer route doesn’t currently lead to settlement in the UK but applicants can switch into the Skilled Worker route if they are looking to stay long-term.
You can apply for British citizenship, known as ‘naturalisation’, once you have held permanent residence in the UK for at least 12 months. There are character and residence requirements which must be met. If your application is approved you will be presented with a Certificate of Naturalisation at a citizenship ceremony and can then use the certificate to apply for a British passport. Note that if you are the partner of a British citizen you may be able to naturalise sooner.
As free movement to the UK has now ended, European nationals who are not currently living in the UK will usually need to apply for a UK visa and the same eligibility criteria will apply as for any other nationality. Although if you have a European family member who was living in the UK before 31 December 2020 it may be possible for you to apply to join them under the EU Settlement Scheme, whether you yourself are also a European national or not. This is a complicated area and we would recommend you take specialist legal advice if you think you may be eligible for the settlement scheme.
The answer to this is probably always going to be ‘Yes’!. Depending on your circumstances it may well be sensible to seek pre-arrival UK tax advice, especially if you may be transferring significant assets here or receiving a substantial income. If you are looking to purchase property in the UK then we would recommend consulting a UK property lawyer. Senior executives or those with complex employment contracts may also benefit from UK employment law advice before relocating. Likewise, entrepreneurs or those looking to establish or build businesses in the UK would be wise to seek advice from specialist corporate and commercial lawyers.
We hope the above has been useful in answering some questions you may have. If you would like to discuss any of the above further or need advice not covered by this article we would be pleased to hear from you by emailing me here.
Kelvin Tanner
Partner
Kreston global mobility expert, Ian Miles, talks us through the benefits of using a global network to relocate businesses and employees overseas.
Global mobility is the movement of individuals around the globe moving from one country to another, usually, but not always, for work.
Our offering is to help to efficiently move employees and businesses to new countries by offering the necessary and relevant tax advice before, while and following living in a new country. A good global mobility strategy should cover tax, visas and immigration, payroll and benefits and relocation services.
A smooth transition benefits the business and the individual moving, whether it is the CEO of a company or an employee. Understanding the culture, local employment laws, working visas and settling in families, if needed, minimises the risk of the relocation failing
The HR department is often involved and can offer assistance to an employee or CEO looking to relocate, however, tax and legal advice is specialist and dependent on the locality. Businesses can choose to source multiple services or use a network that can coordinate everything with one point of contact.
Kreston Global works with two partners to deliver specialist global mobility services.
At each country location is a hub, with a contact from each of the three partners who, together, offer a complete global mobility service. The members of the hub are one person whose business is to physically move people around the world, another member finds housing for the Expat, another finds schools for the Expat’s children, another moves their pet, a wealth manager and so on. The Expat will also need tax advice to help understand the tax laws in the country that they are going to and how the rules of their new country interact with their home country or vice versa if they return home in later years.
Expatland has created a travel planner checklist from their wealth of experience of working with clients around the world, highlighting tasks you should do before, during and after relocation. Follow the link to their website here to use their useful relocation planner tool, download the checklist and research the support we can offer you in each location.
Kreston Global offers tax advice as part of the partnership, which can both advise individuals on the tax aspects of what it means for them to move country and also advise globally mobile entrepreneurs about how to set up a business venture in a new country.
All of our member firms that offer global mobility services are listed here. This list is expanding all the time. You may contact the member firm in the country you wish to expand into, or the country where you reside. Please email us here
January 28, 2022
UK – Each year, a team of Kreston Global UK firms work together to produce an annual benchmark academy report. The survey includes data from 300 trusts representing over 1,500 schools and covers the 2020/21 academic year. This year is the 10th year of reporting, which was a collaboration between Bishop Fleming, Duncan and Toplis, Mitchell Charlesworth, BHP, Clive Owen LLP, Kreston Reeves and James Cowper Kreston.
Highlights of the report include
The average in-year financial surplus for a multi-academy trust (MAT) doubled to more than £460k in 2021 up from £221k in 2020. This comes from reduced costs and government funding during Covid. The money will now be invested in improving the education and well-being of pupils, post-Covid.
Staff costs across all schools have stayed static, with secondary staff costs rising for the 9th year in a row due to a skills shortage, particularly for learning support staff and supply cover.
Nearly 65% of trusts reported expected growth in 2022/23.
Just 14% of trusts are confident their surplus would remain the same for the next 3 years.
97% of trusts are now partly or fully centralised, opting to have one centre for services such as HR, finances and estates.
The percentage of academy trusts pooling funding centrally and distributing it due to individual school needs has risen from 11% in 2020 to 14% in 2021.
If you have a UK-based academy trust and would like accounting advice and support, please contact one of our members here.
January 18, 2022
Sue Staunton, Joint Managing Partner at James Cowper Kreston, discusses the changing landscape of funding in the life science sector post-Covid in PF Magazine. Helpful insight and advice for life-science businesses looking for funding in this sector can maximise opportunities. Read the article here.
