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A UK company is a common choice for Pakistani exporters, IT businesses and Gulf groups selling into Britain and Europe. Running one from abroad is straightforward — but UK company law has tightened under the Economic Crime and Corporate Transparency Act 2023, and the penalties for missing filings fall on the directors personally. This guide sets out the rules that matter most, as at October 2026.
1. Companies House: identity verification
Since 18 November 2025, a newly appointed director must verify their identity with Companies House before acting as a director. Existing directors verify during a 12-month transition period, when the company files its next confirmation statement. People with significant control (PSCs) must also verify.
- Verification is free online through GOV.UK, or can be done through an Authorised Corporate Service Provider (ACSP) — useful for directors based outside the UK.
- A director who acts without verifying commits an offence, and so can fellow directors who let an unverified person keep acting. The Insolvency Service secured its first convictions for these offences in September 2026.
- Check every director's status before the company's next confirmation statement is due.
2. Annual filings with Companies House
| Filing | Deadline |
|---|---|
| Confirmation statement | At least once every 12 months |
| Annual accounts — private company | 9 months after the end of the accounting reference period |
| Annual accounts — public company | 6 months after the end of the accounting reference period |
| First accounts (period over 12 months) — private company | 21 months from incorporation, or 3 months from the accounting reference date if later |
Late accounts attract an automatic penalty. Dormant and non-trading companies must still file.
Size thresholds (periods beginning on or after 6 April 2025)
| Size | Meets at least two of |
|---|---|
| Micro-entity | Turnover up to £1 million; balance sheet total up to £500,000; up to 10 employees |
| Small company | Turnover up to £15 million; balance sheet total up to £7.5 million; up to 50 employees |
Coming in April 2028: the accounts reforms
Companies House has confirmed that the accounts reforms in the 2023 Act take effect from April 2028 (not April 2027 as first planned):
- software-only filing — all accounts filed in iXBRL through commercial software, with the web and paper services closed for accounts;
- small companies and micro-entities must file a profit and loss account, with an option to keep it off the public register;
- abridged accounts are abolished, and companies claiming audit exemption make a strengthened eligibility statement;
- all parts of the accounts and reports are filed together, and the number of times a company can shorten its accounting reference period is reduced.
3. Corporation Tax
| Taxable profits | Rate |
|---|---|
| £50,000 or less | 19% (small profits rate) |
| £50,001 to £250,000 | 25%, reduced by Marginal Relief |
| Over £250,000 | 25% (main rate) |
The £50,000 and £250,000 limits are reduced for short accounting periods and shared between associated companies — including overseas group companies. Tax is generally paid 9 months and 1 day after the end of the accounting period (in instalments where profits exceed £1.5 million), and the Company Tax Return is due 12 months after the end of the period. There is no bill: the company must work out and pay its own tax.
4. VAT and Making Tax Digital
- VAT registration is required once taxable turnover exceeds £90,000 in a rolling 12 months, or is expected to in the next 30 days. Businesses not established in the UK should check the position from their first UK supply.
- Making Tax Digital for VAT applies to all VAT-registered businesses: digital records and returns through compatible software.
- Making Tax Digital for Income Tax applies to sole traders and landlords: from 6 April 2026 where qualifying income exceeded £50,000, from 6 April 2027 above £30,000 and from 6 April 2028 above £20,000. It is relevant to overseas Pakistanis with UK rental property or self-employment.
5. The Pakistan and Gulf connection
Pakistan has a double taxation agreement with the United Kingdom, and Pakistani residents are taxed on their worldwide income — so dividends, salary and rent from the UK belong in the Pakistani return, with relief for UK tax under the treaty or domestic rules. Related-party charges between a Pakistani or Gulf company and its UK subsidiary should be priced at arm's length and documented on both sides.
UK compliance checklist
- Every director and PSC has verified their identity with Companies House
- Confirmation statement, accounts and Company Tax Return dates in the compliance calendar
- Company size checked against the new thresholds each year
- Accounting software able to produce iXBRL accounts before April 2028
- Corporation Tax computed and paid 9 months and 1 day after the year end
- VAT turnover monitored monthly against the £90,000 threshold; MTD-compatible software in use
- Intra-group charges priced and documented consistently in the UK and Pakistan or the Gulf
How Veridian can help
From our Karachi head office we prepare accounts under FRS 102 or UK-adopted IFRS, compute Corporation Tax and VAT positions, and keep the Companies House calendar — with filings and dealings with HMRC handled alongside an HMRC-registered UK adviser and a UK Authorised Corporate Service Provider where required. See our United Kingdom jurisdiction page, or book a consultation.
Official sources
- GOV.UK (Insolvency Service and Companies House) — Directors warned to verify identities with Companies House, 17 September 2026
- Companies House — Preparing and filing Companies House accounts (updated 25 September 2026)
- Companies House — Changes to accounts filing from April 2028, 9 June 2026
- HMRC — Corporation Tax rates and reliefs; Pay your Corporation Tax bill; Company Tax Returns
- HMRC — VAT thresholds
- HMRC — Find out if and when you need to use Making Tax Digital for Income Tax
- HM Treasury — Budget 2026 date
Frequently asked questions
Do overseas directors of a UK company need to verify their identity?
Yes. New directors have had to verify with Companies House before acting since 18 November 2025, and existing directors verify when the company files its next confirmation statement during the 12-month transition. Directors abroad can verify online or through an Authorised Corporate Service Provider.
What is the UK Corporation Tax rate?
19% on profits of £50,000 or less, 25% on profits over £250,000, and 25% with Marginal Relief in between. The limits are shared between associated companies, including overseas group companies.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.