Starting a trading or manufacturing business in Britain will proceed seamlessly only when you understand hm customs and excise duties and make all your payments on 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.
In case your business involves importing services or goods from member eu states which have embraced vat there are certain vat rules that need to be followed vatvalidation not only in the country of origin but also in the UK. If you wish to go in for vat refund for vat already paid in the original country or if you want to enjoy other advantages provided by vat then you’ll have to turn into a vat registered trader. In the UK this is achieved once you touch the vat threshold figure of £70,000 in taxable sales.
Once you import services or goods in the UK then you’ll also need to pay for the appropriate customs duties depending on the nature of the goods. If you intend to import alcohol or 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.
In case you have already paid vat on goods or services in another country before importing it into 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 obtain a vat reclaim, knowledge of uk vat and eu vat rules is essential. Whilst you can easily get all the required knowledge from your hm customs and excise website you possibly can still utilize the services of an experienced customs duty and vat agent. Such an agent may help pay your customs and excise duties while also preparing your vat returns in the stipulated time. A broker with offices in other countries will be ideal as you may also go for vat refunds in countries in which you may have already paid vat.
As soon as you pay all your duties and manage to reclaim vat successfully, you’ll be able to achieve ideal costs for the products and services, thus enhancing the efficiency of your respective business. During times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully could keep yourself the appropriate side of the law. Anyway, the money that you pay as import duties and vat is utilized 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 source of income to the government of the UK. If you have started a business in Britain or have got a manufacturing facility that needs to import capital goods or spares from other countries including eu countries then you’ll need to learn about hm customs and excise duties in order to quickly give the correct amount of applicable duties on your imports.