Tariff

Generally, all goods imported into the UK are subject to the UK Global Tariff (UKGT). A tariff is a tax or duty imposed by one country’s government on goods and services imported from another country.

The tariff makes imported goods and services more expensive to buy because the importers have to recoup the tax and duty paid.

ProsCons
Protect local businesses by giving them a better chance to compete in the industry. They can charge a lower price to increase demand. Imported goods and services become more expensive
Protect domestic manufacturers and employ local people Importers may stop importing if demand is low because they have to charge expensive price tags, which leads to loss of income for the government.
More money for the government through collecting import taxes and duties.

No Tariff to pay

There are situations where the UK global Tariff does not apply to your imported goods.

Free Trade agreement

You are importing goods from a country that has a trade agreement with the UK. For example, The UK has already signed a free trade agreement with Japan on 23 October 2020. You can read more about the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) on GOV.UK website.

Tariff Suspension

The UK helps businesses to remain competitive in the global market by suspending import duties on certain goods. Usually, these goods are used in domestic production. For example, The Uk suspends all tariffs on a group of medical items critical in the response to COVID-19 on 1 January 2021. The suspension is for 12 months on all goods listed by the World Health Organisation (WHO) as critical goods would have 0% duty. For example, surgical gloves under the commodity code of 40151100 are 0% duty.

Imports from country under the UK Generalized Scheme of Preferences

The UK reduces or removes import tariffs on imports from developing countries classified by either the United Nations (UN) or the World Bank as low-income and lower-middle income countries. For example, The UN classified Madagascar as the least developed country. Imports from Madagascar have quota-free access and nil rates of import duty.

Department for International Trade

If you would like to export or import goods or services into and out of the UK, the UK Department for International Trade (DIT) can help you. The DIT provides the following services to businesses wanting to export out of the UK or import from overseas.

  • Create an export plan
  • Find an export market
  • Choose a route to market
  • Get export finance
  • Manage payments for export orders
  • Prepare to do business in a foreign country
  • Prepare for export procedures and logistics
  • Sell services overseas
  • Manage risks of bribery and corruption

There are UK Department for International Trade offices worldwide and also DIT offices around the UK that you may contact to ask for help.

Use Trade Tariff Tool to find Commodity code for Customs declaration

You would require to find the right commodity code for your goods to complete your customs declaration paperwork. Your commodity code will tell you the correct Customs Duty and import VAT to pay.

You may use the HMRC Trade Tariff tool to look up your commodity code. For example, a commodity code for the import of unworked Sapphire is 7103100000. The goods are subject to 20% VAT and 0% duty if it is subject to a third country duty.

You can handle your customs declaration paperwork yourself or you may hire freight forwarders, customs agents or brokers, or fast parcel operators to handle your customs declaration paperwork for you. The person or business you hire to represent you must be established in the UK.

Usually, duty must be paid before your goods can be released unless you have a duty deferment account with HMRC.

Import goods under your company’s name

You must ensure all the legal filings such as Confirmation Statement, company accounts, and corporation tax returns are up to date with Companies House and HMRC if importing using your company’s name.

SIC codes for extraterritorial organisations

You are required to specify a SIC code when completing your confirmation statement for Companies House. SIC stands for Standard Industrial Classification. This article focuses on Section U of the SIC codes for Activities of extraterritorial organisations and bodies. The SIC codes are divided into sections in alphabetical order, ranging from Section A to Section U.

The Office for National Statistics refers to these SIC codes as the UK SIC 2007 codes and use them to produce statistics.

Section U: SIC codes for extraterritorial organisations

SIC codeDescription
99000Activities of extraterritorial organisations and bodies
99999Dormant Company
Source: Companies House

Choose the correct SIC codes for your business

You are required to specify at least one SIC code that closely represents your business activity when you complete your confirmation statement for Companies House.

For example, if your company has not been traded since its incorporation, you must also specify a SIC code in your confirmation statement to Companies House. You can submit your confirmation statement online or by post.

In your confirmation statement CS01 form, under the Standard Industrial Classification code, the SIC codes that represent your business activity is 99999 Dormant company.

SIC codes for other businesses not related to extraterritorial organisations

Click here for a list of SIC codes for other business activities not listed above.

Disclose your business activity in your company accounts

You are also required to disclose your business activities in your company accounts. Usually, the disclosure is in the format of a description rather than using the SIC codes.

For example, you would write in your director’s report under Principal activities heading something like this.

“The company has been dormant for the past 12 months.”

The director’s report is part of your company accounts.

If you require help with your company’s filings with Companies House or HM Revenue and Customs, feel free to contact our accountants. They will be more than happy to assist you.

SIC codes for activities of households as employers

You are required to specify a SIC code when completing your confirmation statement for Companies House. SIC stands for Standard Industrial Classification. This article focuses on Section T of the SIC codes for activities of households as employers; undifferentiated goods and services-producing activities of households for own use businesses. The SIC codes are divided into sections in alphabetical order, ranging from Section A to Section U.

The Office for National Statistics refers to these SIC codes as the UK SIC 2007 codes and use them to produce statistics.

Section T: SIC codes for activities of households as employers

SIC codeDescription
97000Activities of households as employers of domestic personnel
98000Residents property management
98100Undifferentiated goods-producing activities of private households for own use
98200Undifferentiated service-producing activities of private households for own use
Source: Companies House

Choose the correct SIC codes for your business

You are required to specify at least one SIC code that closely represents your business activity when you complete your confirmation statement for Companies House.

For example, if you are providing management services for residential properties and you are using a limited company for these business activities, you would require to submit a confirmation statement to Companies House at least once every 12 months. You can submit your confirmation statement online or by post.

In your confirmation statement CS01 form, under the Standard Industrial Classification code, the SIC codes that represent your business activity is 98000 Residents property management.

SIC codes for other businesses not related to activities of households as employers

Click here for a list of SIC codes for other business activities not listed above.

Disclose your business activity in your company accounts

You are also required to disclose your business activities in your company accounts. Usually, the disclosure is in the format of a description rather than using the SIC codes.

For example, you would write in your director’s report under Principal activities heading something like this.

“The principal activity of the company is that of managing residential properties. There has been no change in the business activities during the year or since the balance sheet date. The director is of the view that the company is well-positioned for the future.”

The director’s report is part of your company accounts.

If you require help with your company’s filings with Companies House or HM Revenue and Customs, feel free to contact our accountants. They will be more than happy to assist you.

SIC codes for other services

You are required to specify a SIC code when completing your confirmation statement for Companies House. SIC stands for Standard Industrial Classification. This article focuses on Section S of the SIC codes for other services businesses. The SIC codes are divided into sections in alphabetical order, ranging from Section A to Section U.

The Office for National Statistics refers to these SIC codes as the UK SIC 2007 codes and use them to produce statistics.

Section S: SIC codes for other services

SIC codeDescription
94110Activities of business and employers membership organisations
94120Activities of professional membership organisations
94200Activities of trade unions
94910Activities of religious organisations
94920Activities of political organisations
94990Activities of other membership organisations n.e.c.
95110Repair of computers and peripheral equipment
95120Repair of communication equipment
95210Repair of consumer electronics
95220Repair of household appliances and home and garden equipment
95230Repair of footwear and leather goods
95240Repair of furniture and home furnishings
95250Repair of watches, clocks and jewellery
95290Repair of personal and household goods n.e.c.
96010Washing and (dry-)cleaning of textile and fur products
96020Hairdressing and other beauty treatment
96030Funeral and related activities
96040Physical well-being activities
96090Other service activities n.e.c
Source: Companies House

Choose the correct SIC codes for your business

You are required to specify at least one SIC code that closely represents your business activity when you complete your confirmation statement for Companies House.

For example, if you are providing physical well-being activities such as Bootcamp, boxing etc and you are using a limited company for these business activities, you would require to submit a confirmation statement to Companies House at least once every 12 months. You can submit your confirmation statement online or by post.

In your confirmation statement CS01 form, under the Standard Industrial Classification code, the SIC codes that represent your business activity is 96040 Physical well-being activities.

SIC codes for other businesses not related to other services

Click here for a list of SIC codes for other business activities not listed above.

Disclose your business activity in your company accounts

You are also required to disclose your business activities in your company accounts. Usually, the disclosure is in the format of a description rather than using the SIC codes.

For example, you would write in your director’s report under Principal activities heading something like this.

“The principal activity of the company is that of providing physical well-being activities such as Bootcamp, boxing etc. There has been no change in the business activities during the year or since the balance sheet date. The director is of the view that the company is well-positioned for the future.”

The director’s report is part of your company accounts.

If you require help with your company’s filings with Companies House or HM Revenue and Customs, feel free to contact our accountants. They will be more than happy to assist you.

SIC codes for Arts, entertainment and recreation businesses

You are required to specify a SIC code when completing your confirmation statement for Companies House. SIC stands for Standard Industrial Classification. This article focuses on Section R of the SIC codes for Arts, entertainment and recreation businesses. The SIC codes are divided into sections in alphabetical order, ranging from Section A to Section U.

The Office for National Statistics refers to these SIC codes as the UK SIC 2007 codes and use them to produce statistics.

Section R: SIC codes for Arts, entertainment and recreation

SIC codeDescription
90010Performing arts
90020Support activities to performing arts
90030Artistic creation
90040Operation of arts facilities
91011Library activities
91012Archives activities
91020Museums activities
91030Operation of historical sites and buildings and similar visitor attractions
91040Botanical and zoological gardens and nature reserves activities
92000Gambling and betting activities
93110Operation of sports facilities
93120Activities of sport clubs
93130Fitness facilities
93191Activities of racehorse owners
93199Other sports activities
93210Activities of amusement parks and theme parks
93290Other amusement and recreation activities n.e.c.
Source: Companies House

Choose the correct SIC codes for your business

You are required to specify at least one SIC code that closely represents your business activity when you complete your confirmation statement for Companies House.

For example, if you are running a sports club and you are using a limited company for these business activities, you would require to submit a confirmation statement to Companies House at least once every 12 months. You can submit your confirmation statement online or by post.

In your confirmation statement CS01 form, under the Standard Industrial Classification code, the SIC codes that represent your business activity is 93120 Activities of sport clubs.

SIC codes for other businesses not related to Arts, entertainment and recreation

Click here for a list of SIC codes for other business activities not listed above.

Disclose your business activity in your company accounts

You are also required to disclose your business activities in your company accounts. Usually, the disclosure is in the format of a description rather than using the SIC codes.

For example, you would write in your director’s report under Principal activities heading something like this.

“The principal activity of the company is that of operating a sports club. There has been no change in the business activity during the year or since the balance sheet date. The director is of the view that the company is well-positioned for the future.”

The director’s report is part of your company accounts.

If you require help with your company’s filings with Companies House or HM Revenue and Customs, feel free to contact our accountants. They will be more than happy to assist you.

12326
%d bloggers like this: