SERVICES
At Upstreamly, we aim to provide a high quality, industry-focused service to clients who require the very best professional advice, whilst retaining a personal feel. We are committed to providing exceptional advice on a range of services, from complex commercial transactions to ordinary day-to-day issues. See how we can help build a better working world for you.
ACCOUNTING
Payroll & Bookkeeping
Financial Reporting
TAX
Corporation Tax
Petroleum Taxes
Tax Planning
International Taxation
ADVISORY
Company Secretarial
Internal Audit
System Implementation
Financial Planning
Not sure what you need? Contact us to find out more.
Accounting
Our team have extensive first-hand experience in setting-up, managing and running finance functions in the energy industry, both in the UK and internationally.
Working within the industry, interacting with other departments including procurement and operations has allowed us to gain an appreciation of their clients’ business needs and pressures. We provide a range of accounting services and solutions tailored for your organisation.
Our accounting services include:
Payroll & Bookkeeping
Payroll
Managing payroll processes requires special consideration as businesses and organisations expand and as legislation is updated. Outsourcing this process allows our clients to focus on their core business and minimise the risks of non-compliance. Our services include:
Registering as employers
Processing and managing monthly payroll
Real Time Information (RTI) filings
Auto-enrolment for pensions
Pension compliance
Managing benefits and allowances
Statutory reporting and forms including P11D, P45 and P60
Bookkeeping
Time is money. We manage your day-to-day bookkeeping to maintain fully supported accounting records with a clear and logical audit trail. We can either use your existing finance system or help you select a more appropriate system to meet your requirements. Our services include:
Electronic record keeping, eliminating the need for physical records
Joint Interest Billing (JIB)
Maintaining fixed asset registers
Foreign exchange accounting
Intercompany accounting and reconciliations
Monthly balance sheet reconciliations
Day-to-day accounting including Accounts Payable and Accounts Receivables management
Accruals, prepayments and manual journals
Invoice templates and billing
Financial Reporting
Reporting requirements are constantly evolving. We understand the importance of keeping up to date with those requirements. We aim to work with you to provide the most relevant and useful information in order to optimise your decision-making process. Our services include:
US GAAP, IFRS and UK GAAP compliance
Month-end reporting and management accounts
Financial planning and analysis
Budgeting and forecasting
Statutory reporting
Annual reports and financial statements
Liaising with and preparing deliverables and information to external auditors and third-parties
Designing and tailoring your chart of accounts
Consolidated group accounting
Key Performance Indicators (KPIs) and energy industry specific reporting including production and lifting data and analytics
Energy industry specific accounting including accounting for decommissioning, impairment reviews, over/under lifting, depletion and accretion calculations and farm out/in accounting
TAX
UK Upstream Oil and Gas tax
The UK government is currently undertaking steps to simplify the existing oil and gas taxation regime that has become increasingly complicated due to the changes made to the oil tax provisions introduced in 1975.
Oil and gas companies are subject to two main elements: Corporation Tax (CT) and Supplementary Charge (SC). A third, Petroleum Revenue Tax (PRT), still exists but has been set at 0% with effect from 1st January 2016. A fourth, government royalty, was abolished with effect from 1st January 2003. A fifth, gas levy, is currently set at 0%.
Corporation tax (CT) is levied on the upstream profits of the company as a whole. After certain adjustments, these profits are also subject to Supplementary Charge (SC). Petroleum Revenue Tax (PRT) only applies in the context of obtaining refunds of tax previously paid.
The marginal rate of these taxes is currently at 40%. Prior to 1st January 2016 the rate was 75% for fields that were subject to PRT.
Non-residents with a presence in the UK are also subject to Corporation Tax on profits from exploration and exploitation activities in the UK or UK sector of the Continental Shelf at the normal CT rate which is 19%.
International Financial Reporting Standards (IFRS) provide the basis for financial reporting to the capital markets in an increasing number of countries around the world. However IFRS is a principles based framework and short on industry guidance, therefore Upstreamly are dedicated to looking at how IFRS is applied in practice by oil and gas companies, what the issues are and how to respond to various accounting challenges that these every changing IFRS create.
CORPORATION TAX
Corporation Tax is levied on the profits of all companies with business in the UK. For those involved in exploration and production (E&P) activities in the UK and the UK Continental Shelf, separate rules known as the ring fence rules (RF) apply.
New domestic laws, international reform and changing approaches by tax authorities mean that the tax world is a constantly changing environment. In the UK, the government continues to drive UK competitiveness. This includes the continuation of the Organization for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project and the changing of HM Revenue & Customs (HMRC) powers.
Whether you’re a global organisation or a UK-based business, we understand the challenges you face and can give you expert advice on domestic and international corporate tax issues.
PETROLEUM TAXES
Petroleum Revenue Tax (PRT) is a tax on the profits from oil and gas production in the UK. This tax only applies to ‘taxable fields’ that were approved before 16th March 1993.
Effect of PRT on your company:
From 1st January 2016 PRT is permanently zero-rated however not completely abolished. This is because companies still require access to their tax history regarding trading losses and decommissioning costs. Due to this zero-rating, taxable oil fields can now become non-taxable if the field has been opted out of the regime.
The effect of this zero rating will result in a marginal tax rate of 40% for both PRT and non-PRT paying oil and gas fields.
TAX PLANNING
We regularly advise clients on acquisitions, disposals and the optimal structuring of their groups’ operations in the UK. This is reviewed on a regular basis in order to take into account current developments.
We also assist with the process of restructuring. We advise on the tax issues and provide assistance with any accounting and company law issues that may arise.
INTERNATIONAL TAXATION
If your company operates across borders and in multiple jurisdictions, it is vital that you comply with the local tax laws and the reporting and filing obligations. It is also essential that you stay up to date with any new legislative developments. However it is not enough to just be compliant. The key to a successful business is keeping you tax strategy aligned with your corporate strategy.
Upstreamly have the resources and experience to help companies like yours deal with any cross-border needs.
SUPPLEMENTARY CHARGE
The current rate of Supplementary Charge is 10%, reduced from 20% with effect from 1 January 2016.
Over the years the SC rate has endured various changes due to the dynamic economic climate. Originally in 2002, the rate was 10%, which increased to 20% in 2006 and to 32% in respect of profits accruing after 23 March 2011. The rate then underwent a reduction to 20% for accounting periods beginning on or after 1st January 2015. It was subsequently reduced to 10% for accounting periods beginning on or after 1st January 2016. However the relief for decommissioning expenditure for any work undertaken afer 21st March 2012 was limited to 20% when the rate exceeded 20%.
The tax base of profits subject to SC is the ring fence profits of the company chargeable to CT after removing financing costs and deducting any Field, Cluster, or Investment allowances available. Field, Cluster and Investment Allowances can reduce the company profits subjected to SC.
In 2015 the Finance Act introduced a unified Investment Allowance, replacing the majority of other Field Allowances.
ADVISORY
Our team at Upstreamly understands the increasing pressure placed on businesses to produce better results, which includes a multiplicity of complex processes. With our team of advisors we offer a number of top quality services; our specialist professionals have extensive experience in the energy and renewables sectors and advise on complex commercial transactions.
Our specialists work in close contact, around your time frame and at a fast pace in order to maximise strategic change and direct maximum success, giving you confidence in your decisions. Through our advisory service, we propose a strategy, perform the plan and produce positive results.
The advisory services we provide include:
Company Secretarial
Internal audit
System implementation
Financial planning
We strive to become your trusted advisor, offering a personal service to ensure you/we produce the most attainable, successful results.
COMPANY SECRETARIAL
Read our blog for a list of company secretarial services we are authorised to provide: Trust or Company Service Providers (TCSPs)
UK companies are putting greater emphasis on how they manage their organisation from a statutory and governance perspective. Our team provides wide-ranging corporate support to ensure companies comply with the relevant statutory law, regulations and legislation. Whether the goal is minimum compliance or best practice, our team have the experience and knowledge to provide the best solutions for you. Because each company is different, we offer a tailored service to support the specific needs and requirements of every client.
INTERNAL AUDIT
The role of an internal audit is to provide independent assurance that your organisation’s risk management governance and internal control processes is operating effectively.
We have qualified, skilled and experienced people who provide an unbiased, objective view and work in accordance with the Code of Ethics and International Standards.
We examine the wider issues such as your organisation’s reputation, growth, the impact on the environment and the way employees are treated.
In short, we help organisations to succeed through a combination of assurance and consulting. This involves discussing with organisations how well the systems and processes are working and advising the best course of action to help improve those systems and processes where necessary.
