Learn about hm customs and excise duties

Starting a trading or manufacturing business in the UK will proceed seamlessly only if you learn about 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 was established in 2005 after the merger of hm customs department with the revenue department.

If 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 not only in the country of origin but also in the UK. If you want to go in for vat refund for vat already paid in the original country or if you want to enjoy all other advantages offered 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 goods or services into the UK then you will also need to pay the appropriate customs duties depending on 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 provided 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 into the UK then after paying all your duties, you can still claim the vat paid in the other country by furnishing all the required details. In order to successfully get a vat reclaim, knowledge of uk vat and eu vat rules is a must. While you can easily get all the required knowledge from the 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 while also preparing your vat returns in the stipulated time. An agent with offices in other countries would be ideal since you could also go in for vat refunds in countries where you might have already paid vat.

Once you pay all your duties and manage to reclaim vat successfully, you will be able to achieve ideal costs for your products and services, thus turning increasing the efficiency of your business. In times of competition avoiding double taxation would 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 that 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 most of your taxes including vat online by registering your business at the hmrc website.

Customs and excise duties along with collection of vat forms an important source of income to the government of the UK. If you have started a business in the UK or have a manufacturing plant 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 so as to quickly pay the correct amount of applicable duties on your imports.