At KNAV, we offer specialized tax, audit, and advisory services for businesses operating between the US and the UK. With deep expertise in cross-border tax compliance, regulatory frameworks, and financial reporting, we help companies streamline their global strategies and ensure compliance with local laws. Our teams in key cities like New York, Houston, and London deliver tailored solutions, enabling seamless coordination across borders. Let KNAV’s global expertise and local knowledge support your business growth and success in the competitive US-UK market.
Comprehensive Tax Solutions for US and UK Companies
Navigating the intricacies of cross-border tax compliance between the US and UK requires a deep understanding of both jurisdictions. At KNAV, we specialize in helping businesses on both sides of the Atlantic optimize their tax strategy, minimize liabilities, and ensure compliance with evolving tax regulations. Our local teams with cross-border tax expertise, ideally located in New York, Atlanta, Houston, and San Francisco in the US and London in the UK, are geared to provide the best-in-class tax services.
For US Companies Operating in the UK
Expanding your business into the UK comes with unique tax challenges, including the complexities of VAT, UK corporate taxes, and transfer pricing rules. Our team of experts provides seamless solutions to ensure your business remains compliant and tax-efficient.
- UK Corporate Tax Compliance: We assist US companies in navigating the UK’s corporate tax requirements, ensuring timely filing and optimal use of available tax incentives such as capital allowances and R&D credits.
- VAT Compliance and Advisory: As VAT (Value Added Tax) is a major component of UK tax law, we help US businesses comply with VAT regulations, ensuring accurate filings and minimizing exposure to penalties.
- Transfer Pricing: We support US companies in structuring intercompany transactions in compliance with IRS and HMRC regulations, preparing transfer pricing documentation that meets cross-border requirements and ensures tax efficiency.
- Double Taxation Relief: We provide extensive consultations and guidance on the choice of entity to conduct business in the UK, including determining permanent establishment tax exposure. By leveraging the US-UK Tax Treaty, we help minimize the impact of double taxation, ensuring that income earned in the UK is not excessively taxed by both jurisdictions.
- Tax Audit Support: In the event of an audit by tax authorities in the US or UK, our experts are equipped to represent and support your business through the entire process, ensuring compliance and minimizing potential risks.
- Tax Due Diligence: Our tax team is fully equipped to conduct tax due diligence for mergers and acquisitions in the UK. A deep understanding of the tax laws of the US and UK provides us an opportunity to advise on the impact of loss carry-forward rules, debt-equity structuring, and holding company structures.
For UK Companies Operating in the US
UK companies expanding into the US must manage federal and state tax obligations while optimizing their cross-border tax strategy. We provide bespoke solutions that help UK businesses succeed in the competitive US market.
- US Corporate Tax Compliance: We provide full support with US federal and state tax filings, ensuring that UK companies remain compliant while minimizing tax liabilities. This includes assistance with state income tax, franchise tax, and payroll tax obligations.
- SALT (State and Local Tax): With each US state having its own tax regulations, our team helps UK businesses navigate state-specific tax requirements, including sales tax and nexus rules.
- Transfer Pricing for Cross-Border Transactions: We ensure that your intercompany pricing arrangements between the US and UK comply with both IRS and HMRC guidelines, mitigating the risk of audits and penalties.
- US-UK Tax Treaty Utilization: We help UK businesses optimize their tax strategy by leveraging treaty benefits, including reduced withholding tax rates on dividends, interest, and royalties between the US and the UK.
- Location Advisory: Selecting the right location for US expansion is key to success. We assist UK businesses in finding locations with favorable tax incentives, regulatory environments, and access to target markets, providing strategic guidance for sustainable growth.
Key Cross-Border Tax Considerations
- Permanent Establishment Risk:
US and UK tax authorities closely scrutinize businesses to determine if they have a “permanent establishment” in the other country, which may trigger local tax obligations. We help structure your operations to minimize this risk.
- Transfer Pricing and Documentation:
Transfer pricing rules in the US and UK require robust documentation. We provide comprehensive support to ensure that your intercompany transactions meet the regulatory requirements of both jurisdictions.
- Withholding Taxes:
Cross-border payments between the US and UK may be subject to withholding taxes. We help businesses apply the benefits of the US-UK tax treaty to reduce withholding tax rates on dividends, interest, and royalties.
- Tax Accounting:
Preparation of consolidated financial statements requires application of US GAAP ASC 740 and UK IAS 12, depending on the consolidating parent. Our tax accounting team has the skills, knowledge, and experience to assist in preparing current and future tax computations and disclosures required for financial reporting purposes.
Audit and Assurance Services for Cross-Border Businesses
Whether you’re a US company with UK operations or a UK business expanding into the US, having reliable financial reporting is critical to maintaining stakeholder confidence and regulatory compliance. At KNAV, we offer comprehensive audit services that address the specific needs of cross-border businesses.
Audit Services for US Companies Operating in the UK
Financial Statement Audits (UK FRS 102 and US GAAP): Our audits ensure your financial statements can comply with both US GAAP and UK FRS, enabling you to meet local reporting standards in the US and the UK. We also provide guidance on transitioning between accounting frameworks as your business grows.
Internal Control Audits: We assess your internal controls to ensure compliance with UK corporate governance requirements, such as those under the UK Companies Act, while also aligning with US standards (e.g., Sarbanes-Oxley Act).
Regulatory Compliance Audits: We assist US companies with audits that ensure compliance with UK-specific regulations, including financial services regulations and sector-specific reporting requirements.
Audit Services for UK Companies Operating in the US
While privately owned US companies do not have statutory requirements for getting their financial statements audited, the UK company’s consolidated financial statements audit may lead to a need for an audit of the US subsidiaries. Our audit teams in the UK and US work cohesively, leveraging their audit work as independent network members of KNAV International Limited to provide a seamless audit experience. KNAV International Limited is a member of the Forum of Firms.
Sarbanes-Oxley (SOX) Compliance: We help UK companies listed on US stock exchanges implement and maintain effective internal controls in line with SOX, ensuring transparency and accountability in financial reporting.
Technical Accounting Support
Managing complex accounting standards and financial reporting requirements can be challenging, particularly for businesses operating in multiple jurisdictions. KNAV provides technical accounting support tailored to the specific needs of US and UK businesses to ensure compliance with evolving accounting standards.
- IFRS and GAAP Consultation:
We offer advisory services on UK FRS, IFRS, and US GAAP reporting issues, helping businesses prepare financial statements that meet regulatory standards in the US and UK.
- Revenue Recognition (ASC 606/IAS 15):
We provide guidance on revenue recognition policies to ensure they comply with ASC 606 and IAS 15, helping businesses streamline their accounting processes.
- Lease Accounting (ASC 842/IAS 16):
Our team helps businesses adopt the latest lease accounting standards, ensuring accurate reporting of lease assets and liabilities.
- Financial Reporting:
We assist with the preparation of financial statements, helping companies meet disclosure requirements and accurately present their financial position to stakeholders.
Client Accounting and Advisory Services (CAAS)
For businesses seeking to outsource their accounting and financial management functions, KNAV offers a comprehensive suite of Client Accounting and Advisory Services (CAAS) that provides end-to-end support for your accounting needs.
- Bookkeeping and Financial Reporting: We offer ongoing bookkeeping services and prepare financial statements that comply with US and UK accounting standards, allowing you to focus on your core business.
- Outsourced Controller Function: Our outsourced controller services provide you with accurate financial oversight, ensuring that your accounts are properly managed, reconciled, and reported to support better decision-making.
- Outsourced CFO Services: We offer strategic financial leadership with outsourced CFO services, helping you navigate complex financial decisions and optimize your business performance.
- Accounts Payable and Receivable: We manage your AP/AR functions, ensuring timely payments and receipts to maintain healthy cash flow and relationships with suppliers and customers.
Advisory Services
At KNAV, we provide a wide range of advisory services catering to the needs of businesses operating in the US and UK. Our advisory offerings help clients navigate complex business challenges, optimize operations, and capitalize on opportunities for growth.
Valuation Services
Our valuation team delivers accurate, independent valuations for mergers, acquisitions, financial reporting, and compliance, specializing in cross-border assets, businesses, and intangible assets.
Mergers & Acquisitions Advisory
From deal structuring to due diligence, we provide advisory services for mergers, acquisitions, and cross-border transactions, ensuring that our clients are well-positioned for successful business outcomes.
Transaction Advisory
Our transaction advisory services include support for corporate restructuring, divestitures, and capital raising, helping businesses maximize value and minimize risks during significant transactions.
Why Choose KNAV for US-UK Cross-Border Tax, Audit & Advisory Services?
At KNAV, we are uniquely positioned to assist businesses with operations in both the US and the UK. Our deep understanding of both jurisdictions allows us to provide tailored tax, audit, and advisory solutions that meet your cross-border business needs.
Bespoke Cross-Border Expertise:
Our professionals have extensive experience advising businesses on the intricacies of US-UK tax, audit, and accounting regulations, ensuring compliance while optimizing your financial strategy.
Seamless Coordination:
With offices in the US and the UK, we provide seamless service delivery across borders, ensuring that your operations remain integrated and efficient.
Global Perspective with Local Expertise:
We combine global reach with local knowledge to provide solutions that align with the tax, regulatory, and accounting environments of both the US and the UK.
Get in Touch. Contact KNAV today to learn how our tax, audit, technical accounting, and advisory services can support your US-UK cross-border operations. Whether you’re expanding your business into a new market or ensuring compliance with complex regulations, our team is here to help.
