They can’t because they’d have to pay the same as everyone else. That’s really just an admission by Rover.
So what’s the problem?
Well, some of it is because of geography – the region being divided into three parts (the UK and Northern Ireland, Wales and Scotland) means you won’t receive enough funds to cover the costs of sending a person to each of those locations.
Some other costs are geographical so you will be getting less money for moving a small business.
The other problem is that because of the rules about how the funds can be spent, Rover was effectively forced to spend any money it raises on moving and hiring its own staff, instead of doing what companies typically do by giving back to UK taxpayers.
So how can you avoid such a thing?
A spokesperson for Rover told me that the company’s CEO, Mark Halliday, is happy with the way things are working out.
“It’s an unusual position to have for a corporation because companies generally don’t really know or understand the details of the tax rules for the UK,” he said
“So it’s been a bit surprising to see us being singled out for criticism but we aren’t in the clear in any way and we don’t agree with any of the recommendations that [HMRC] have put forward.”
A company called C2C Group, which manages Rover’s UK operations, also declined to comment on their situation.
But it’s clear that for a company which has had such a large turnover from the UK, the cost is not one the taxman is keen, although that doesn’t necessarily mean it’s justified.
So how can you avoid paying the extra tax?
First, if you’re moving and bringing in significant costs to the UK, you might consider a long-term lease at what you hope will be a lower rate.
Secondly, and if you want to save money, don’t forget that Rover is tax-exempt and you’re free to give the money directly to charity or invest it in other businesses.
Finally, don’t give back to the IRS on top of the money you’ve saved.
What’s your best advice to avoid UK tax on your UK turnover? Let us know using the comments.
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