Receiving parcels from The Netherlands.

nrishiraj

Hi

I've contacted the offical government HMRC web chat, but they're answers have been very ambiguous.

Can you please shed some light and perspective to my questions?

My mother in law who lives in Holland, has been sending parcels for years to England (including after Brexit), the weight is around 10-20kg. However, to our shock, we suddenly had to pay a large customs payment of £100 to receive the 20kg parcel.

1) Why did this happen? when it's never happeneed before?

2) Do they do it randomly? (pick a random parcel to tax) or does it go by the value stated?

3) If the post office has heavily over valued it at £500, is that the reason the £100 had to be paid? It was clearly stated the contents were gifts and second hand clothes.

4) Does it go by the nature of the contents if you get to pay?

Thanks for your help.

tightauldgit

The gift limit is £39 before you are subject to import taxes - what was the declared value of the item? Yes it's not possible for HMRC to check every single parcel that comes in so often ones that should be taxed just get through. The amount you have to pay is based on the value of the parcel. It doesn't matter if the items are gifts. And yes if HMRC think you have misdeclared the value of the parcel they can apply what they think is the true value. It doesn't go by the nature of the contents, it goes by value - I think some people mistakenly believe that you only have to pay taxes on commercial purchases and that things like gifts from relatives don't count. 

DullGreyGuy

nrishiraj said:

Hi

I've contacted the offical government HMRC web chat, but they're answers have been very ambiguous.

Can you please shed some light and perspective to my questions?

My mother in law who lives in Holland, has been sending parcels for years to England (including after Brexit), the weight is around 10-20kg. However, to our shock, we suddenly had to pay a large customs payment of £100 to receive the 20kg parcel.

1) Why did this happen? when it's never happeneed before?

2) Do they do it randomly? (pick a random parcel to tax) or does it go by the value stated?

3) If the post office has heavily over valued it at £500, is that the reason the £100 had to be paid? It was clearly stated the contents were gifts and second hand clothes.

4) Does it go by the nature of the contents if you get to pay?

Thanks for your help.

Weight is totally irrelevant 

1) It happened because of Brexit and because of what your mother-in-law has put on the customs declaration
2) It goes by the stated landed value and the other items put on the customs declaration
3) Post Office isnt involved at all. Assuming it's been sent by post that hands off to Royal Mail when it lands in the UK then they just use the values stated on the customs declaration. If the MiL declared the value at £500 then you'd be expecting a bill of over £100 given VAT alone would be £100 but you'd also have to pay import duty and the RM handling fee
4) Yes, different products have different tax rates

It is only gifts under £39 per person that have special treatment. Once the value goes above that it's no different if it's a gift or not a gift. 

Note that when we talk value its the total value including P&P and any insurance, not just the value of the stuff in the box. 

Unfortunately sometimes senders make mistakes and the data is ultimately lifted from the declaration into the HMRC systems so errors can happen there too. There is an appeals process if the total cost has been captured incorrectly. 

Pre-Brexit both countries were in the EU and so no taxes would be due for moving things between member states as long as taxes had initially been paid in Holland (ie sales tax when she bought the items)