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Our client a UK company is owned equally by three US university presses which are all treated as non-taxable in the US. As a standalone company it is a SME.
It provides sales services and UK-based employees are employed via the payroll to obtain sales for the university press books which are imported and distributed in the UK. The UK company is a vehicle for the university presses to employ a UK sales team.
Currently there is a cost plus 5% agreement – the UK company incurs costs (rent payroll travel etc) and is recharging to universities on a cost plus 5% basis as advised by their previous agent.
In practice the universities only send cash to cover the upcoming spend as and when requested the 5% has never been paid over and is creating a debtor balance in the accounts. The...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
