Opening new markets is one of the clearest routes to long-term growth. Whether you are selling software to Singapore or shipping organic produce to Paris, expanding your business internationally brings fresh revenue streams alongside an equally fresh set of financial questions. Exchange rates shift, rules on value added tax change and cashflow becomes more stretched as goods cross borders. It is exciting – but excitement alone will not pay the duty invoice that lands three weeks after the container leaves Tilbury.
A recent Office for National Statistics survey found that only 22 percent of UK businesses with ten or more employees currently export goods or services (ONS, 2024). That figure reflects how many firms hesitate when they first weigh up the administrative and financial load. Yet the same data shows those that do export are, on average, more productive and faster-growing than their domestic-only peers. At Nicholas Peters & Co. we help clients design finance strategies that turn overseas ambitions into measurable results.
This article sets out the key questions to ask before, during and after expanding your business internationally. The guidance is practical, grounded in 2025/26 legislation and written for owners, finance directors and teams who want straight answers rather than theory. Wherever you are in the UK, the principles apply – and getting them right early will save both money and stress down the line.
Why forecasting matters when expanding your business internationally
Sterling’s trade-weighted exchange rate is currently one percent lower than the Office for Budget Responsibility projected six months ago (OBR, 2025). That may sound marginal, yet a one-percent swing can wipe out the margin on a low-price consumer product. Robust forecasting therefore sits at the heart of any expansion plan.
Good forecasts should cover:
- Sales pipeline by market: Quantify realistic volumes rather than best-case hopes.
- Direct costs: Include shipping, insurance, duties and local taxes.
- Overhead allocation: Budget for extra staff time, travel and professional advice.
- Exchange-rate scenarios: Model best, base and worst cases at product level.
Updating these figures each quarter keeps the plan live and allows you to tweak pricing before problems grow. If forecasting is not your forte, our business planning team can build the model for you. Find out more.
Choosing the right overseas structure: branch, subsidiary or partnership
The legal form you use abroad shapes everything from corporation tax to local filing. Broadly you have three choices:
- Overseas branch: Your UK entity remains liable for profits and losses in the host country.
- Wholly-owned subsidiary: A separate legal person with its own accounts and tax returns.
- Joint venture or partnership: Shared ownership, often required in territories that restrict foreign control.
Branches keep administration simplest but may expose UK assets to overseas claims. Subsidiaries ring-fence risk yet add compliance cost. Partnerships can give market insight, though dividend repatriation may be slow. Seek local legal advice and run multi-year tax projections before committing – our tax planning specialists can coordinate this with in-country professionals. Learn more.
Managing cashflow and currency risk
Time lags lengthen when you are expanding your business internationally. Goods in transit tie up capital, and overseas customers may take longer to pay. Combine that with volatile exchange rates and even profitable sales can starve the business of cash.
Practical tools include:
- Multi-currency accounts: Receive, hold and pay in local currency to avoid constant conversions.
- Forward contracts: Lock in exchange rates up to twelve months ahead for known payments.
- Trade credit insurance: Protect receivables and strengthen your balance sheet.
- Accelerated invoicing: Offer early-settlement discounts or use invoice finance on export invoices.
We routinely model cashflow to show the working-capital impact of each tactic – a service many clients bolt onto our monthly management accounts.
VAT, customs duties and indirect tax planning
Every item that crosses a border creates a tax event. From 1 April 2025 late-paid VAT now incurs penalties of up to 10 percent a year from day 31 (HMRC, 2025). Add incorrect commodity codes and the figures rise quickly.
Key action points:
- Confirm commodity codes: Incorrect codes can trigger duty surcharges and shipment delays.
- Register for the Import One-Stop Shop or relevant local schemes where you store stock inside the EU.
- Keep digital evidence: HMRC can request import documents up to six years later.
HMRC’s schedules of customs penalties spell out potential fines – a sobering read that underlines why detail matters. Where clients handle significant EU trade we work with customs specialists to audit procedures before the first consignment leaves the UK.
Funding growth abroad
Scaling overseas often needs more capital than scaling at home. Options to explore:
- Government grants: UK Export Finance offers guarantees and insurance that unlock bank borrowing.
- Equity investment: Investors with global networks can open doors as well as wallets.
- Local banking facilities: Some jurisdictions lend against local assets more readily than UK banks will.
Prepare a concise pack that shows how expanding your business internationally will increase revenue and profitability. Investors expect proof that gross margin still stacks up after duties and freight.
Compliance and reporting: keeping regulators satisfied
Many expansion projects falter because directors underestimate ongoing admin. Typical requirements include statutory accounts in local GAAP, transfer-pricing documentation and – in some markets – employer social taxes even for remote staff.
Put in place:
- Local advisers: Accountants and lawyers who monitor filing calendars.
- Cloud systems: Shared ledgers such as Xero or NetSuite disaggregate data by entity.
- Group-wide policies: Intercompany charges, dividend policy, document retention.
Technology and advisers: building your cross-border finance toolkit
If you want to succeed at expanding your business internationally, treat technology as non-negotiable. A mature stack typically includes:
- Cloud bookkeeping: Real-time data in sterling and local currency.
- Automated expense capture: Streamlines employee claims when travel ramps up.
- Integrated customs software: Pre-populates declarations, reducing errors.
Choose platforms that integrate well – the cost of manual rekeying quickly outweighs licence fees.
Ready to talk about expansion?
Expanding your business internationally is not a leap into the unknown – it is a calculated series of steps that reward careful planning. From exchange-rate forecasting to VAT compliance, each decision influences both profit and risk. Clients who embed robust financial controls before their first overseas invoice see faster payback and sleep better at night.
If you are ready to put expert numbers behind your ambition, we are here to help. Contact us today for a clear, practical route map and ongoing support as your business grows beyond the UK.