A SHEFFIELD tax expert is urging local firms to look for ways to cut the cost of import duties.
Robin Simpson, an indirect tax specialist with Nether Edge company VAT Solutions, warns that the current economic climate is encouraging nations to protect their trade and one way of doing that is through import duties.
But, he says there are ways to minimise charges and create important savings at a time when companies are still feeling the impact of recession
“While duty rates are normally lower than the standard rate of VAT this does not compensate for the fact that while VAT is normally recoverable from HM Revenue and Customs, duty is not,” says Mr Simpson.
“The duty cost means either the price of the finished goods increases or profit margins are reduced depending on whether the importer feels able to pass on the cost, but there are many ways of mitigating this duty cost which are readily accepted by HMRC.”
n The search is on for the Sheffield City Region company that has demonstrated significant growth and development internationally, an understanding of its overseas markets and a strategy for further growth through international trade.
If your company could fit the bill, visit www.thestar.co.uk/businessawards for more details and to submit an entry for the international category in this year’s Star Business Awards.