CASE STUDY
UK & Swiss Structure Review
How Euro Accounting helped an international digital marketing group review its cross-border structure, identify key risks and establish a clearer path forward.
KEY FINDINGS
40 of 42
clients based in the UK
38 of 39
employees based in the UK
£192,985
internal balance requiring reconciliation
3
structural options assessed
Sector
Digital marketing
Structure
UK holding company, UK trading company and Swiss branch
Review focus
Profit attribution, branch treatment and tax risk
UK trading profile
£4.25m turnover and £452.7k operating profit
The Challenge
The business operated through a UK trading company and a Swiss branch, but its accounting treatment and internal documentation did not fully align with the commercial reality.
The group needed clarity on profit attribution, internal balances and whether the Swiss branch should be retained.
Our Approach
Euro Accounting carried out a detailed structural and cross-border tax review.
- Reviewed the legal and tax structure
- Assessed branch profit attribution and permanent establishment risk
- Analysed internal cash flows and accounting treatment
- Compared three future structural options
- Defined the documentation and accounting actions required
The review focused on aligning the structure with where commercial activity, value creation and risk management actually occurred.
The Outcome
UK Activity Was Commercially Dominant
Most clients, employees, contracts and operational delivery were located in the UK.
Swiss Branch Treatment Needed Clarification
The Swiss operation was a branch, not a separate company, and required formal branch accounting and profit-attribution treatment.
Balance Clean-Up Was Required
The £192,985 internal balance required reconciliation, reclassification and supporting documentation.
A Decision Framework Was Established
Three future options and six priority actions were identified.
At a Glance
UK annual turnover
£4.25m
UK operating profit
£452.7k
Swiss branch first-period result
CHF 60,266 loss
Clients based in the UK
95%
Compliance / Recommended Direction Note
Recommended direction:
- The UK company should remain the principal profit-making entity, with profits attributed in line with where value was created and risks were managed.
- The Swiss branch should either be formally documented as a limited executive and support function or simplified and closed if no longer commercially required.
We help international businesses review their structure, clarify cross-border tax responsibilities and reduce avoidable compliance risk.