Flag in air

Birmingham 2022 Commonwealth Games

Robert Marchant, Partner, VAT and Customs Duty services, Dinesh Jangra, Partner, Global Practice Leader for Global Mobility, and Emma Locken, Partner, Corporate Tax
12/05/2022
Flag in air

UK tax considerations

With less than 100 days to go to the start of the Birmingham 2022 Commonwealth Games, many organisations involved with the Games in the UK will be making their final preparations. Tax can often be an area that is overlooked.

We provided details below of a number of considerations to help both those organisations involved with the running of the Games, or those that are simply attending to entertain their clients and staff.

 Consideration Tax consequences

Will you have workers, an office, a delivery centre or temporary capabilities in the UK?
  • Could you create a permanent establishment and taxable presence in the UK for corporate tax purposes?
  • Do you have a VAT establishment or a need for VAT registration?
  • Will those workers give rise to payroll and social security obligations for you? How will payroll reporting and compliance in the employees’ home country change?
  • How do you avoid double payroll taxes?

Will you incur UK VAT on your operating costs?
  • You may need to consider whether this VAT can be reclaimed and if so what is the process for so doing, bearing in mind any time limits that may apply.

Will you have any entertaining costs?
  • VAT can be reclaimed on staff entertaining costs but not on client entertaining. Do you have the processes in place to identify this VAT so that appropriate action can be taken?
  • Entertaining of staff may need to be reported for tax purposes.

Have you had workers in the UK for an extended period e.g. in relation to infrastructure works?
  • Have the individuals had an obligation to pay UK personal tax on their earnings?
  • Will your organisation be taking steps to neutralise the complexity and differences in applicable tax rates for them?
  • Do your employees need to make tax filings?

Will you be bringing goods into the UK specifically for use during the Games?
  • Do you understand your obligations from a customs compliance and duty perspective, and have the requisite processes in place to manage these? There may be ways in which you are able to lessen the impact on your cash flow.
  • Consider whether you will need to be UK VAT registered.
























Further information

To discuss how your involvement with the Games and the tax issues that may arise, please contact Robert Marchant, Dinesh JangraEmma Locken or your usual Crowe contact. Crowe UK is a leading audit, tax, advisory and risk firm. Find out more about us

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Contact us

Robert Marchant
Robert Marchant
Partner, VAT and Customs Duty services
London
Dinesh Jangra
Dinesh Jangra
Partner, Global Practice Leader for Global Mobility
London
Emma Locken
Emma Locken
Partner, Corporate Tax
London