In case you have started a new manufacturing or trading business in the UK which involves importing goods and services then you will need to pay your taxes on time to hm customs. There are various types of taxes collected by this department on the goods, services, and earnings, and also the vat numbers money collected is spent on providing public services to the people of the country.
The hm revenue & customs was formed in 2005 in the United Kingdom with the merger of Inland Revenue and hm customs and excise department. This vital department collects direct and indirect taxes while managing child benefits as well as border and frontier protection services, among other services. The hmrc also collects vat or value added tax from traders in the UK.
If you intend to begin a small business in the United Kingdom that involves import of goods from other eu countries that have also adopted vat then you’ll have to pay customs duties, excise duties or import vat on your imported goods, in line with the classification of these goods by the hmrc department. Once the goods are sold, then you will also need to collect vat on them provided you are a vat registered dealer. As soon as you go over the vat threshold limit set by the hm customs department you will subsequently be issued a vat number and may need to sell your goods or services via a vat invoice.
The hm revenue and customs department has also gone high tech, and offers an array of vat online services in addition to services regarding customs and excise duties, vat refunds, etc. However, you should certainly try to garner sufficient knowledge on uk vat as well as eu vat if you wish to reclaim vat that might have been paid in other eu countries before being imported to the UK. This department also guides citizens on how to start their own business in addition to fulfilling vat requirements as well as provides vat rules that should be followed for successful vat implementation.
If you still have trouble in figuring out what is vat or do not have time and energy to administer your vat payments and collections then you can appoint a tax agent or adviser to take care of all your vat requirements. Including filing vat returns and obtaining vat reclaim in the UK or any other European country where vat might have been paid.
This will help to reduce your paperwork burden along with your financial burden as you will have the ability to prevent the problem of double taxation on your goods or services. If you’d like detailed information on all services offered by hmrc then you can also visit their webpage and read about each service in great detail. You can also download various vat forms in addition to other kinds of forms which will save considerable time and effort.
Your organization in the UK will be successful if only you understand and comply with all types of taxes that need to be paid while importing and selling services or goods. It is the job of the hmrc to track your enterprise and collect vital taxes from you. On your part, it’s your job to ensure that you pay your taxes in time to hm customs in order to stay on the right side of the law.