If you have started a new manufacturing or trading business in the UK that also involves importing goods and services then you will need to pay your taxes on time to hm customs. There are several forms of taxes collected by this department on your goods, services, and earnings, and the 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 direct and indirect taxes while managing child benefits along with border and frontier protection services, among several other services. The hmrc also collects vat or value added tax from traders in the UK.
If you plan to start a business in the UK that involves import of goods from other eu countries that have also adopted vat then you will need 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 need to collect vat on them provided you are 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 high tech, and offers a wide range 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 and even eu vat if you want to reclaim vat that might have been paid in other eu countries before being imported into the UK. This department also guides citizens on how to start their own business along with fulfilling vat requirements and also provides vat rules that need to be followed for successful vat implementation.
If you still have trouble in figuring out what is vat or do not have time to administer your vat payments and collections then you can appoint a tax agent or adviser to handle all your vat requirements. This includes filing vat returns and applying for vat reclaim in the UK or any other European country where vat might have been paid.
This will help reduce your paperwork burden as well as your financial burden as you will be able to avoid the problem of double taxation on your goods or services. If you need detailed 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 along with several other types of forms that will save a lot of time and effort.
Your business in the UK will be successful only if you comprehend and comply with all types of taxes that need to be paid while importing and selling goods or services. It is the job of the hmrc to track 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 remain on the right side of the law.