If you have started a new manufacturing or trading business in the United Kingdom that also involves importing products or services then you will need to pay your taxes in time to hm customs. There are several types of taxes collected by this department on your 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 UK with the merger of Inland Revenue and hm customs and excise department. This vital department collects indirect and direct taxes while managing child benefits along with border and frontier protection services, among other services. The hmrc also collects vat or value added tax from traders in the nited kingdom.
If you intend to start a small business in the UK which involves import of products from other eu countries which have also adopted vat then you’ll have to pay customs duties, excise duties or import vat on your imported goods, based on the classification of those goods by the hmrc department. Once the goods are sold, then you will also have to collect vat on them provided you’re a vat registered dealer. Once you cross over the vat threshold limit set by the hm customs department then you will be issued a vat number and will need to sell your goods or services through a vat invoice.
The hm revenue and customs department has also gone hi-tech, and provides a wide range of vat online services together with services regarding customs and excise duties, vat refunds, etc. However, you ought to certainly attempt to garner sufficient knowledge on uk vat and even eu vat if you wish to reclaim vat that may have already been paid in other eu countries before being imported into the UK. This department also guides citizens on how to start their very own business in addition to fulfilling vat requirements and also provides vat rules that need to be followed for successful vat implementation.
In the event you have trouble in figuring out what is vat or don’t have time and energy to administer your vat payments and collections then you can appoint a tax agent or adviser to take care of your entire vat requirements. This includes filing vat returns and obtaining vat reclaim in the United Kingdom or any other European country where vat may have been paid.
This will help reduce your paperwork burden along with your financial burden as you will be able to prevent the problem of double taxation on the services or goods. If you need more information on all services offered by hmrc then you can also visit their website and read about each service in great detail. In addition you can also download various vat forms in addition to several other kinds of forms which will save a lot of time and effort.
Your business in the UK will be successful if only you understand and comply with all kinds of taxes that should be paid while importing and selling goods or services. It’s the job of the hmrc to monitor your business and collect vital taxes from you. On your part, it is your job to ensure that you pay your taxes on time to hm customs so as to stay on the correct side of the law.