UK govt cuts web shoppers a break

Back to the article

Wow. So what's the catch? #

Posted Monday 17th November 2008 16:47 GMT

Will vat be going up to 20% in April to compensate for this change? The government don't give anything away for nothing. At least not to law-abiding, tax-paying citizens.

Rik Hemsley

Customs charge calculation #

Posted Monday 17th November 2008 16:47 GMT

Anyone know how to find out in advance exactly the amount customs will charge for a given parcel?

I can't find useful information on their website - it's very vague.

Iain Purdie

Gifts? #

Posted Monday 17th November 2008 17:26 GMT

Any news on a higher rate for gifts? Currently they're VAT and duty free up to a value of £36. I'd assume this limit would also be raised - but to the same £105 or to higher?

Someone

Bad Example #

Posted Tuesday 18th November 2008 08:35 GMT

If you buy a digital camera from a US website for £104 today, there still won’t be a penny of Customs duty to pay. Digital stills cameras do not attract Customs duty.

http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989

Further, Customs duty is currently waived if it amounts to less than £7. So, if the item attracts 10% duty, that’s items up to £70 in value. For 5%, that’s up to £140. If this new rule completely replaces the old one, you’re going to be worse off for items with a rate x, where 0% < x < 6.66%.

Richard Turton

Plus Royal Mail handling fee #

Posted Tuesday 18th November 2008 08:35 GMT

On low value items (but still over the £18 VAT bar) the real killer is the Royal Mail handling charge of £8 to collect the VAT and duty.

Check out - http://www.royalmail.com/portal/rm/content1?catId=400044&mediaId=400362

"Any package assessed by HM Revenue and Customs as being liable for Customs charges will also incur a Royal Mail handling fee of £8."

Anonymous Coward

Re: Duty on Cameras #

Posted Tuesday 18th November 2008 11:06 GMT

"Digital stills cameras do not attract Customs duty."

True, but those with the capability to record video do - therefore, most "compacts" and some DSLRs (D90, 5D MKII) do.

A Baird

Oh so very... #

Posted Tuesday 18th November 2008 11:06 GMT

...generous of them.

A whole three to four per-cent.

Still have to add 17.5% VAT and the courier handling fees which range from £8 to £35...

Fail.

James Pickett

Joined-up #

Posted Tuesday 18th November 2008 11:07 GMT

So, previously, the bar was £18 for both Duty and VAT, and now it's £104 for one and £18 for the other! I guess the gummint has to provide some new jobs somehow...

Tim

probably no catch #

Posted Tuesday 18th November 2008 13:20 GMT

@Gary F

It probably is costing them more in admin to handle the low value items than they collect (civil servants don't come that cheap). If that's the case then they don't need to raise taxes as it's actually a cost cutting measure.

Gordon Stewart