Overseas purchase

[Andy J]

Posted by Andy Stephenson on 19/01/2021 14:08:16:

There was no prompt to suggest a value and I made no request for one and I'm sure the HMRC have better things to do than chase up a tiny amount of duty.

Think you have got it wrong Andy, If you are a global company with a multi million pound profit margin then the UK tax authority are obliged not to look to deeply into any tax owed. However for the rest of the world tax avoidance needs to be policed and enforced at the strongest level possible by HMRC as every penny pays their income.

PS: I have never seen an option on the HK site to state the value of the goods.

[Martin Harris - Moderator]

It was an option in their early days - probably 10 years or more ago. As I recall, it defaulted to a value of 10% of the ticket price so you would have been "bang to rights" if HMRC investigated and you hadn't selected the full value.

[Andy Stephenson]

Martin,

I was never given the option to select anything by the supplier, this is how it arrived.

A.

[Erfolg]

For a long time I have purchased small value(sub £15) items from HK.

I did not know that the £15 allowance had been withdrawn, which has provided me with an issue of the best strategy to limit my tax and handling charge exposure.

There could be an opportunity for an enterprising UK person to start a home business selling bulk accessories, that manufacturers are paid peanuts for. Such as micro hinges, clevises etc. As these items are generally sold at very high prices in UK, MS.

[DIGGER]

Here in Cyprus things are not very good for our hobby, since the restrictions last year on getting lipos, ( can't come by air) we have had to get them shipped by sea using a Relocation services which put about €5 fee on top of the price, we could live with that. Now we could have to pay 29% more on import duty with vat. This will be to much, we could buy them from EU countries but we are back to the transportation problem again. It could mean that as the batteries give up so will the models and flying. There is no IC motors in our part of the island due to noise and fuel problems. We can only hope a solution will present itself. As for parts and accessories because of the duty we will not be buying from UK shops and will have to use EU countries that will post to us. I wonder how many more members in other countries will have the same problems?

Chris

[Peter Jones 21]

Posted by DIGGER on 21/01/2021 08:20:11:

Here in Cyprus things are not very good for our hobby, since the restrictions last year on getting lipos, ( can't come by air) we have had to get them shipped by sea using a Relocation services which put about €5 fee on top of the price, we could live with that. Now we could have to pay 29% more on import duty with vat. This will be to much, we could buy them from EU countries but we are back to the transportation problem again. It could mean that as the batteries give up so will the models and flying. There is no IC motors in our part of the island due to noise and fuel problems. We can only hope a solution will present itself. As for parts and accessories because of the duty we will not be buying from UK shops and will have to use EU countries that will post to us. I wonder how many more members in other countries will have the same problems?

Chris

But you have got the sun.

[Frank Skilbeck]

Posted by Erfolg on 19/01/2021 20:19:02:

For a long time I have purchased small value(sub £15) items from HK.

I did not know that the £15 allowance had been withdrawn, which has provided me with an issue of the best strategy to limit my tax and handling charge exposure.

There could be an opportunity for an enterprising UK person to start a home business selling bulk accessories, that manufacturers are paid peanuts for. Such as micro hinges, clevises etc. As these items are generally sold at very high prices in UK, MS.

If your supplier in Hong Kong registers for UK VAT then they will be able to supply direct to the UK (VAT inc) much like any UK shop. It all depends on whether those oversea suppliers believe this is worth their while.

[Nigel R]

<edit>

"Such as micro hinges, clevises etc. As these items are generally sold at very high prices in UK, MS."

Why is it that you think UK suppliers charge 'very high prices'?

What is it that you think would be different for 'an enterprising UK person' starting a home business?

How would they be different to the existing 'enterprising UK person' running a small part time home business on (e.g.) Ebay?

Genuinely curious what you think could be done different, what market will be reached that is not already, etc.

Edited By Nigel R on 21/01/2021 09:46:30

[Erfolg]

On reflection I suspect you are correct Nigel.

I guess that HK make it work by selling to plus hundreds of thousand people. In the case of the UK there are possibly only 40,000 of us, who buy these items infrequently. The stock taking to long to move, whereas HK quickly run out of stock, going onto Back Order, sometimes for weeks.

I guess that my orders with HK will now be increased in value, as even 20% Vat on a few pence is much lower than a few pounds. In my case Mail Order P&P is my main means of purchase, the costs of which is often similar to HK P&P. Again in my case traveling to a HS is much greater than postage.

I guess that the additional cost incurred increases the cost attraction of ARTF models, and a further economic disincentive to scratch type builders, where we already build at a financial disadvantage.

[Phil McCavity]

I don't see the cost of building as a disincentive that favours ARTF at all, you have to pay up front and in full for a ARTF whereas you spread the cost with a build which in reality makes it more affordable. The only thing that favours ARTF is time saved.

 

Edited By Phil McCavity on 21/01/2021 12:24:59