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bigduckontax, Accountant
Category: Tax
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I am a start up company who is not VAT registered. Now my

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hi i am a start up company who is not VAT registered. Now my query is regarding custom duty and tax on this, when i order my shoes the value is 39,900, do i pay custom duty and tax on this? also do i or is there a way to claim the vat back and also have custom duty relief......
my concern is i cant claim vat back because we are not trading and therefore cant register for VAT return
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I assume from the tenor of your question that you are importing these shoes. If so on importation Customs will impose import duty and VAT, although they do not always charge the former. The import duty cannot e reclaimed and forms part of your cost of sales. The VAT is an input tax and can be reclaimed. You can register for VAT in advance of trading and in any event any input tax incurred whilst setting up can be aggregated and entered as input tax on your first quarterly VAT return when you do achieve registration. I do hope that I have cleared the air for you on this matter.
Customer: replied 1 year ago.
just to confirm then on shoes custom duty is 17% correct?so if i register now, the 20% charge of vat on custom duty the stock and deliver i can claim back in the first four months when we claim VAT back is this correct?
Expert:  bigduckontax replied 1 year ago.
The custom duty will be charged at a percentage on the Customs assessment of the value. The VAT will them be applied. Customs duty on imported shoes can vary depending on the source country [source HS Tariff codes]: 'The global average import duty rate for Shoes is 15.8%, with a minimum of 0% and a maximum of 100%.' Yes you can, the first quarterly return for a newly registered enterprise will invariably be skewed as setting up input VAT is recovered by the enterprise.
Customer: replied 1 year ago.
Ok, do you know much on seed enterprise investment scheme?
Expert:  bigduckontax replied 1 year ago.
You can read about the SEIS here: https://en.wikipedia.org/wiki/Seed_Enterprise_Investment_Scheme
Customer: replied 1 year ago.
my question was to vague sorry!ok so seis allows investors to invest £150,000 and claim tax relief, now in one tax year they can claim £100,000 so this is £50,000.what about the other £50,000 is this eligible in the second yearso example two scenarios:i get £115,000 investment, therefore after claiming it wuld be a total cash amount of £65,000second examplei get £100,000 in first year, £50,000 in second year so then total relief would be £75,000 after two years?hope you can help thanks
Expert:  bigduckontax replied 1 year ago.
It is also on a completely different subject and should have been entered as an entirely new question. However the guidance is quite clear viz 'on a maximum annual investment of £100,000.' Therefore the additional 50K can be utilised in the following year. Income Tax relief on a SEIS investment of 115K would be 57.5K and on a 150K investment over two years, 75K. Here is the guidance from the Gov UK web site: 'Relief is available at 50% of the cost of the shares, on a maximum annual investment of £100,000.'
Customer: replied 1 year ago.
so one investment can make 150k investment and over two years have relief of 75k? if I'm correct
Expert:  bigduckontax replied 1 year ago.
Correct.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3369
Experience: FCCA FCMA CGMA ACIS
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