Starting a trading or manufacturing business in Britain will proceed seamlessly only if you learn about hm customs and excise duties and make all your payments in time. Most duties and taxes in the UK are managed by hm revenue and customs or hmrc, which was established in 2005 after the merger of hm customs department with the revenue department.
If your business involves importing goods or services from member eu states that have embraced vat there are certain vat rules that need to be followed vat validation not just in the country of origin but also in the UK. If you want to go for vat refund for vat already paid within the original country or if you wish to enjoy other advantages provided by vat then you will need to turn into a vat registered trader. In the UK this is achieved when you touch the vat threshold figure of £70,000 in taxable sales.
When you import services or goods in the UK then you will also need to pay the appropriate customs duties depending on the nature of the goods. If you intend to import alcohol or cigarettes and tobacco products then you’ll have to pay excise duty to the hm customs and excise department. You’ll find 14,000 classifications provided by the hmrc vat department and customs, excise, import vat and sales vat duties would depend on this classification.
If you have already paid vat on services or goods in another country before importing it to the UK then after paying all your duties, you can still claim the vat paid inside the other country by furnishing all the required details. In order to successfully get a vat reclaim, knowledge of uk vat and eu vat rules is a must. While you can easily get all the knowledge from the hm customs and excise website you can still use the services of experienced customs duty and vat agent. This type of agent may help pay your customs and excise duties whilst preparing your vat returns within the stipulated time. A broker with offices abroad would be ideal since you could also go in for vat refunds in countries where you might have already paid vat.
As soon as you pay your duties and manage to reclaim vat successfully, you’ll be able to accomplish ideal costs for your services and products, thus increasing the efficiency of your respective business. In times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully could keep you on the right side of the law. Anyway, the amount of money that you pay as import duties and vat is used by the excise and customs department for public services. With technology at your fingertips, you can now pay much of your taxes including vat online by registering your enterprise at the hmrc website.
Customs and excise duties along with variety of vat forms an important revenue stream to the government of the UK. In case you have started a business in the UK or have a manufacturing facility that has to import capital goods or spares from other countries including eu countries then you will need to learn about hm customs and excise duties so as to quickly pay the correct amount of applicable duties for your imports.