Starting a trading or manufacturing business in the UK will proceed seamlessly only when you understand hm customs and excise duties and make all of your payments in time. Most duties and taxes in Britain are managed by hm revenue and customs or hmrc, which has been established in 2005 after the merger of hm customs department with the revenue department.
If your business involves importing services or goods from member eu states that have embraced vat there are certain vat rules that need to be followed vat validation not only in the nation 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 wish to enjoy all other advantages offered by vat then you’ll have to turn into a vat registered trader. In Britain this can be achieved once you touch the vat threshold figure of £70,000 in taxable sales.
When you import goods or services into the UK then you’ll 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 need 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 will depend on this classification.
In case you have already paid vat on services or goods in another country before importing it into the UK then after paying all of 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, knowledge of uk vat and eu vat rules is a must. While you can certainly get all the required knowledge from your hm customs and excise website you possibly can still use 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 will be ideal since you may also go for vat refunds in countries where you might have already paid vat.
As soon as you pay your duties and find a way to reclaim vat successfully, you will be able to accomplish ideal costs for the services and products, thus increasing the efficiency of your business. In times of competition avoiding double taxation will be a huge asset while paying your customs and excise duties dutifully will keep you on the right side of the law. Anyway, the money which you pay as import duties and vat is utilized by the excise and customs department for public services. With technology at your fingertips, now you can pay much of your taxes including vat online by registering your enterprise at the hmrc website.
Customs and excise duties together with collection of vat forms an essential revenue stream to the government of the UK. If you have started a business in the UK or have a manufacturing facility that needs to import capital goods or spares from other countries including eu countries then you’ll need to read about hm customs and excise duties in order to quickly give the correct amount of applicable duties on your imports.