Crosswords0 min ago
Import tax
I'm about to have an electrical item shipped from the USA her into the UK (a family member who lives there is purchasing it from a store). The item costs $250 (�140), do i have to pay an import tax, and if so, does anyone know where i can find a calculator to determine how much?
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Some people list the item as a 'sample' or even a gift and put a low value price on the custom declaration form so duty is either not payable or a smaller amount is..
Not that I am advocating you do that ... a relative sent a wedding gift over to my son and lied about the value, inflating the price, claiming it cost around �600 and my poor son had to pay �150 duty! They hated the gift anyway and it sits in my loft ha ha!
Not that I am advocating you do that ... a relative sent a wedding gift over to my son and lied about the value, inflating the price, claiming it cost around �600 and my poor son had to pay �150 duty! They hated the gift anyway and it sits in my loft ha ha!
Step 1: Calculate the import tax. Rates for most electrical goods vary between zero and 14%. See here to see if your item is listed:
http://customs.hmrc.gov.uk/channelsPortalWebAp p/downloadFile?contentID=HMCE_PROD_009989
Otherwise phone the HMRC Tariff Classification Service Enquiry Line on 01702 366 077
Step 2: Decide whether the tax you've calculated is greater than �10. (Currently �7.98). If the answer is 'Yes' you've got to pay the tax. If the answer is 'No', the tax is waived.
Step 4: Check whether the value of the item is greater than �22. (Currently �17.56). Obviously it is, so you'll have to pay VAT. (Otherwise you wouldn't have had to do so).
Step 4: Calculate the VAT. On electrical goods this will be 17.5% but you should note that VAT is charged on the value of the goods, on the cost of the carriage and on the import tax (if any) as previously calculated. (Yes, that's a tax on a tax!).
Step 5: Add together the tax (if any) and the VAT. Then add a further �8.00 inspection fee to your total. (The inspection fee is only waived when there's no tax or VAT to pay).
Your total is the amount that the postman (or courier) will demand before handing over your goods.
Chris
PS: Before ordering, through your family member, check that the item will work in the UK. The USA uses a different supply voltage, at a different frequency and with different plugs. Additionally, differing DVD region codes and TV broadcast systems are in use.
http://customs.hmrc.gov.uk/channelsPortalWebAp p/downloadFile?contentID=HMCE_PROD_009989
Otherwise phone the HMRC Tariff Classification Service Enquiry Line on 01702 366 077
Step 2: Decide whether the tax you've calculated is greater than �10. (Currently �7.98). If the answer is 'Yes' you've got to pay the tax. If the answer is 'No', the tax is waived.
Step 4: Check whether the value of the item is greater than �22. (Currently �17.56). Obviously it is, so you'll have to pay VAT. (Otherwise you wouldn't have had to do so).
Step 4: Calculate the VAT. On electrical goods this will be 17.5% but you should note that VAT is charged on the value of the goods, on the cost of the carriage and on the import tax (if any) as previously calculated. (Yes, that's a tax on a tax!).
Step 5: Add together the tax (if any) and the VAT. Then add a further �8.00 inspection fee to your total. (The inspection fee is only waived when there's no tax or VAT to pay).
Your total is the amount that the postman (or courier) will demand before handing over your goods.
Chris
PS: Before ordering, through your family member, check that the item will work in the UK. The USA uses a different supply voltage, at a different frequency and with different plugs. Additionally, differing DVD region codes and TV broadcast systems are in use.
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