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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5143
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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There if our company is an agent foreign company and

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Hi there if our company is an agent for a foreign company and handle there uk payments via e money merchant how do we set up in order not too pay tax on the turn over? Thanks
Thank you for your questionAs an agent, handling UK payments for onward transmission to the foreign company, the amount collected is not turnover. You are acting as a collecting agent and it is a mechanism by which debtor money is recovered.What would constitute turnover is any fee you charge the foreign company for the service.You should separate monies received to be passed to foreign company from your other receipts.It is like a solicitor maintaining a client account and an office account. You may not wish to open two bank accounts but any receipts that are not your turnover should be credited to a separate nominal code within the balance sheet section and not income section. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Hi yeah in order to obtain a business account in the uk to support this what would we need to set up as business form for the bank to accept us as this agent thanks again will rate excellent help
Thank you for your reply. If you are trading from a base in the UK, you should not have a lot of difficulty in opening a business bank account, subject to credit checks.If you are based outside the UK, you will have issues in opening a bank account in the UK without a UK business address.The bank would need some documented agreement between your company and foreign based company, to satisfy compliance with Money Laundering Regulations. I hope this is helpful and answers your question.I will appreciate if you would kindly rate/accept the service I provided t oensure I get credited for it by Just Answer. and other Tax Specialists are ready to help you
I thank you for accepting my answer. Best wishes