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Warning: New Royal Mail Import Charges

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My daughter recently sent for a costume necklace from the US worth about £30.

Today we were contacted by the local Royal Mail sorting office to say there was a £19 import charge to pay!

We were told they have recently reduced the value of goods which have to have duty paid from £30 to only £15!

Vigman
Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
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Comments

  • ewan_c
    ewan_c Posts: 181 Forumite
    Don't think that they can just decide these things off their own back.

    Here's a link to the gov uk site http://www.hmrc.gov.uk/customs/post/buying.htm#3

    Looks like VAT is due on items over £15 and then the individual courier company charges a "handling" fee which is maybe why the total is £19 for your parcel.
  • bod1467
    bod1467 Posts: 15,214 Forumite
    It's a recent change, but not new as such. I accept that this hasn't been publicised very well.

    VAT (at 20%) on £30 is £6. I thought RM charged £8 for handling this, so why is the charge £19? (There is no customs duty payable for goods up to £135, so I would have expected £6 + £8 = £14).

    http://www.royalmail.com/personal/help-and-support/Ive-received-a-card-asking-for-a-payment
  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    edited 19 February 2014 at 12:24PM
    £19 seems a tad high. If it the total cost of the consignment is £30 (are you including all shipping costs?), the VAT would be £6 and Royal Mail's handling fee would be £8, so a total of £14. If there is shipping and insurance on the £30 then that's probably right. [Edit: Oops, beaten to the calculations by bod1467 :D]

    The limit was reduced a few years back from £18 to £15, so either way this parcel would have been liable for import VAT (a decision of HMRC) and then Royal Mail's fee. The range for customs limits is set at the EU level and could not have been as high as £30. There is a higher allowance for legitimate gifts (£40) but that does not apply to commercial shipping.
    This is everybody's fault but mine.
  • Not really new! The £30 limit was only for gifts, not things you buy, and the changes have been around a while.
  • vigman
    vigman Posts: 1,380 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thanks, everyone.

    The Royal Mail card says Custom's charge (including handling fee) £19.27.

    My wife rang to query this and the staff member said that there had been a drop from £30 to £15 for 'these charges' and that the figure owing was correct!?

    Vigman
    Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    It is correct.

    The import fee is around £8, and the VAT/customs is everything other than that.

    What is the value PLUS shipping, so £30 for the necklace, perhaps £5/6 for the shipping?
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    LOL @ new charges
    The changes were from HMRC
    RM hasnt changed its fee in about 7 years.
  • vigman
    vigman Posts: 1,380 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    custardy wrote: »
    LOL @ new charges
    The changes were from HMRC
    RM hasnt changed its fee in about 7 years.

    Pity someone doesn't inform their counter staff who said that the drop from £30 value to £15 was recent!

    Vigman
    Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
  • zax47
    zax47 Posts: 1,263 Forumite
    edited 19 February 2014 at 6:46PM
    As soon as the value is over £15 then VAT is charged on the TOTAL of the Goods value PLUS the shipping charges. If Goods were £20 with £5 shipping then VAT is due on the TOTAL of £25! Thus it would £5 VAT due, not £4 as many would expect.

    To say what the correct figure is in this case we need to know the shipping cost.

    The threshold changed back in November 2011 - so not "recent" at all;

    "HM Revenue and Customs Changes to Import VAT on goods imported on or after 1 November 2011
    With effect from 1 November 2011, the threshold over which commercially imported goods entering the UK are subject to import VAT will reduce from £18 to £15. However, this change does not affect any other Customs thresholds or reliefs.
    This means that from 1 November 2011, commercial consignments of £15 or less, excluding alcohol, tobacco products, perfume or toilet waters, will be free from customs duty and import VAT."

    Nevertheless, at £30 the OPs necklace would always have attracted UK VAT.
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    vigman wrote: »
    Pity someone doesn't inform their counter staff who said that the drop from £30 value to £15 was recent!

    Vigman

    Which would be the HMRC changes.
    You would have been charged under the old system,so are you now saying people should watch out for charges from 7 years ago?
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