Starting a trading or manufacturing business in Britain will proceed seamlessly only when you understand 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 after the merger of hm customs department with the revenue department.
In case your business involves importing goods or services from member eu states that have embraced vat then there are certain vat rules that need to be followed vat validation not just in the nation 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 all other advantages provided by vat then you will need 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.
When you import services or goods into the UK then you’ll also have to pay for the appropriate customs duties according to the nature of your goods. If you plan to import alcohol or cigarettes and tobacco products then you will 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 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 of your duties, you are able to still claim the vat paid in 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. While you can easily get all the knowledge from your hm customs and excise website you possibly can still utilize 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 may also go in for vat refunds in countries in which you may have already paid vat.
Once you pay your duties and manage to reclaim vat successfully, you will be able to achieve ideal costs for your services and products, 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 yourself the appropriate side of the law. Anyway, the amount of 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, now you can pay most 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 essential source of income to the government of the UK. In case you have started an organization in the UK or have got a manufacturing facility that needs to import capital goods or spares from other countries including eu countries then you will need to learn about hm customs and excise duties in order to quickly give the correct amount of applicable duties for your imports.