Starting a trading or manufacturing business in the UK will proceed seamlessly only if you learn about hm customs and excise duties and work out all of 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 following the merger of hm customs department together 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 should be followed vat validation not just in the nation of origin but also in Britain. If you want to go in for vat refund for vat already paid in the original country or if you wish to enjoy other advantages provided by vat then you will have to turn into a vat registered trader. In the UK this can be achieved when you touch the vat threshold figure of £70,000 in taxable sales.
Once you import goods or services in the UK then you’ll also have to pay the appropriate customs duties according to the nature of the goods. If you plan to import alcohol or tobacco products then you will need 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.
In case you have already paid vat on services or goods in a foreign country before importing it to the UK then after paying all your duties, you are able to still claim the vat paid inside the other country by furnishing all the details. In order to successfully get a vat reclaim, understanding of uk vat and eu vat rules is essential. While you can easily get all the required knowledge from your hm customs and excise website you can still use the services of experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties while also preparing your vat returns within the stipulated time. An agent with offices abroad will be ideal since you could also go in for vat refunds in countries in which you may have already paid vat.
Once you pay your duties and find a way to reclaim vat successfully, you will 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 will 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 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 business at the hmrc website.
Customs and excise duties together with collection of vat forms an important revenue stream to the government of the UK. If you have started an organization in the UK or have got a manufacturing facility that has to import capital goods or spares from other countries including eu countries then you will need to read about hm customs and excise duties so as to quickly pay the correct amount of applicable duties on your imports.