Starting a trading or manufacturing business in the UK will proceed seamlessly only when you understand hm customs and excise duties and make all your payments on time. Most duties and taxes in the UK are managed by hm revenue and customs or hmrc, which has been established in 2005 after the merger of hm customs department together with the revenue department.
In case your business involves importing goods or services from member eu states which have embraced vat then there are certain vat rules that need to be followed vatvalidation not just in the country of origin but also in Britain. If you wish to go for vat refund for vat already paid within the original country or if you want to enjoy other advantages offered by vat then you’ll have to turn into a vat registered trader. In the UK this can be achieved once you touch the vat threshold figure of £70,000 in taxable sales.
Once you import goods or services into the UK then you’ll also have to pay the appropriate customs duties according to the nature of your 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. There are 14,000 classifications furnished by the hmrc vat department and customs, excise, import vat and sales vat duties will depend on this classification.
If you have already paid vat on goods or services 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 details. To be able to successfully get a vat reclaim, understanding of uk vat and eu vat rules is a must. Whilst you can easily get all the required knowledge from your hm customs and excise website you can still utilize the services of an experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties whilst preparing your vat returns within the stipulated time. A broker with offices in other countries would be ideal since you may also go in for vat refunds in countries in which you may have already paid vat.
Once you pay all your duties and manage to reclaim vat successfully, you’ll be able to accomplish ideal costs for your products and services, thus enhancing the efficiency of your respective business. In times of competition avoiding double taxation will be a huge asset while paying your customs and excise duties dutifully will keep yourself the appropriate side of the law. Anyway, the money which 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 together with variety of vat forms an important revenue stream to the government of the UK. In case you have started an organization in Britain or have a manufacturing plant that has to import capital goods or spares from other countries including eu countries then you’ll need to learn about hm customs and excise duties so as to quickly pay the appropriate amount of applicable duties for your imports.