Stop Royal Mail Handling Fee for HMRC customs charges! 5 July 2014 at 11:28AM in Campaigns corner 19 replies 15.3K views

MizzSunshine69

Hi all!

Now I realise that this has already been a heavily debated subject. But I have recently had some interaction with Royal Mail and HMRC regarding this issue and have come to the conclusion that this is down to pure laziness on the part of HMRC. I have been stung multiple times with Royal Mail Handling fees which I believe to be disproportionate and unethical. I fully respect the need to pay our taxes. I am not disputing that. But I contacted HMRC recently to ask if I could pay my VAT directly to them ahead of a parcel arriving and was refused. An £8.00 handling fee on a £1.75 customs fee is ridiculous. Especially when you consider that Royal Mail are now a private company. HMRC are a government entity who are allowing a third party private company to levy charges against individuals for services they didn't even ask for, and offer no alternative method of paying HMRC directly. Royal Mail flatly refuse to release your item unless you pay their extortionate fee. I don't see how this practice is even legal. Regardless of whether you consider £8.00 to be a large sum or not, as the only national post provider, it is still unfair that Royal Mail are allowed to monopolise the market this way and hold customers (and their parcels) to ransom.

This has nothing to do with people's choice to shop abroad. Simply stating that people should shop in the UK if they don't like it, is not the answer. People have many reasons for buying abroad, from cost, to simply seeking wider variety or different designs. It's no one else's place to tell them otherwise, but of course it is right and proper that VAT be paid. That being said, I am very much pro-VAT, but I am anti-rip-off.

With this in mind, I have created an online e-petition at the HM Government website. I am unable to post the link due to being a new user. It is petition 62803 and the title is the same as this thread. If you agree with my thoughts above, please do search for it, sign and share amongst likeminded people. With any luck, we may just be able to help put a stop to it.

Thank you for reading.

custardy

MizzSunshine69 wrote: »

Hi all!

Now I realise that this has already been a heavily debated subject. But I have recently had some interaction with Royal Mail and HMRC regarding this issue and have come to the conclusion that this is down to pure laziness on the part of HMRC. I have been stung multiple times with Royal Mail Handling fees which I believe to be disproportionate and unethical. I fully respect the need to pay our taxes. I am not disputing that. But I contacted HMRC recently to ask if I could pay my VAT directly to them ahead of a parcel arriving and was refused. An £8.00 handling fee on a £1.75 customs fee is ridiculous. Especially when you consider that Royal Mail are now a private company. HMRC are a government entity who are allowing a third party private company to levy charges against individuals for services they didn't even ask for, and offer no alternative method of paying HMRC directly. Royal Mail flatly refuse to release your item unless you pay their extortionate fee. I don't see how this practice is even legal. Regardless of whether you consider £8.00 to be a large sum or not, as the only national post provider, it is still unfair that Royal Mail are allowed to monopolise the market this way and hold customers (and their parcels) to ransom.

This has nothing to do with people's choice to shop abroad. Simply stating that people should shop in the UK if they don't like it, is not the answer. People have many reasons for buying abroad, from cost, to simply seeking wider variety or different designs. It's no one else's place to tell them otherwise, but of course it is right and proper that VAT be paid. That being said, I am very much pro-VAT, but I am anti-rip-off.

With this in mind, I have created an online e-petition at the HM Government website. I am unable to post the link due to being a new user. It is petition 62803 and the title is the same as this thread. If you agree with my thoughts above, please do search for it, sign and share amongst likeminded people. With any luck, we may just be able to help put a stop to it.

Thank you for reading.

You contacted the HMRC.
Why? Surely you researched the and followed the correct procedure?

NeverInDebt

Besides the disproportionate handling fee given cost of item etc etc, is there any reason other than you find Parcel force delivering said item/s you are singling out Parcel Force, surely other courier companies charge a similar charge.

You still have a choice and exercise that by not buying goods over a certain value abroad outside the EU for example.

I only buy very low cost goods abroad say from Ebay/Amazon from China sellers those that don't accrue any import/vat/handling fee chargers

custardy

NeverInDebt wrote: »

Besides the disproportionate handling fee given cost of item etc etc, is there any reason other than you find Parcel force delivering said item/s you are singling out Parcel Force, surely other courier companies charge a similar charge.

You still have a choice and exercise that by not buying goods over a certain value abroad outside the EU for example.

I only buy very low cost goods abroad say from Ebay/Amazon from China sellers those that don't accrue any import/vat/handling fee chargers

Not even that.
The OP wants to pay just the VAT. They can do this.
It simply requires a bit of preparation before the item hits UK shores.

Buzby

The £8 fee is the cheapest available from any carrier. I gather VAT on the fee will be added soon, so it's not going to get any better. I am at a loss to understand what is 'disproportionate' about the fee. The amount of paperwork is no less if the amount due is £1.50 or £150, just the VAT and duties for the recipient.

If too much, then buy from someone who has stocks in the EU.

makfai

It seems a bit odd that a normal VAT registered trader is unable to levy a handling fee each time his business collects VAT from a customer but the parcel deliverer can.

OK the trader can claim VAT back but so can the likes of ParcelForce.

antrobus

makfai wrote: »

It seems a bit odd that a normal VAT registered trader is unable to levy a handling fee each time his business collects VAT from a customer but the parcel deliverer can...

Not really. The "normal VAT registered trader" is already engaging in a transaction that involves collecting £10 (say) from their customer; the fact that the imposition of VAT makes that £12 doesn't really make a significant change.

In any case, there is no law that prevents a normal VAT registered trader from levying such a fee should they wish to do so.

malcolmchisholm

I received a VAT demand for £11.98 plus £8 handling fee. The incorrectly-charged VAT has been refunded, but I am still £8 out of pocket.

How do I claim this back?

I have signed your petition.

Malcolm

buglawton

I notice that the more expensive eg £100 items from USA are now selling through the Ebay Global Postage Programme deal where all import charges are known and paid upfront.

One example, $40 import charge being quoted on a £100 item, plus postage £14 on quite a bulky/heavy item.
http://www.ebay.co.uk/itm/Grace-Digital-Victoria-GDI-IRN1941-Internet-Radio-Wi-Fi-gdiirn1941-/390716932568?pt=US_Internet_Media_Streamers&hash=item5af88b41d8
$40 is not much more than 20% Vat.
Anyone trust or used this scheme?

JumpingFrog

buglawton wrote: »

I notice that the more expensive eg £100 items from USA are now selling through the Ebay Global Postage Programme deal where all import charges are known and paid upfront.

One example, $40 import charge being quoted on a £100 item, plus postage £14 on quite a bulky/heavy item.

$40 is not much more than 20% Vat.
Anyone trust or used this scheme?

I have used it several times and on each occasion has arrived by courier with nothing to pay from the states.

Also check out Amazon US almost everything they sell sold by Amazon can be shipped to the UK with all Taxes / Duty paid for in advance .... use this all the time and have never had to pay anything else when I receive the item

barncopxx

I think it speaks for itself. Nothing is straight forward when dealing with HMRC. Royal mail only charge a £1 handling fee when dealing with an ordinary item of underpaid mail, but for dealing with customs charges there is an £8 handling fee. There is a lot more admin involved behind the scenes for Royal Mail when dealing with customs charges as opposed to ordinary underpaid items of mail. The customer will not see this obviously. As with utilities, insurance etc the more work involved the more you pay. Someone has to handle these items on behalf of HRMC as they don't do deliveries, I'll defy you to find another private courier who will do it cheaper! Alternatively, buy inland and avoid any further nasty surprises!