General > General Technical Chat
HMRC & RoyalMail arrangement
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noreply:

--- Quote from: tom66 on June 19, 2020, 02:24:26 pm ---Why do they charge £8 fee?

Because of the cost of collection - it is not zero.   

--- End quote ---

Precisely ...


My gripe is not with the 'collector of VAT' - in this case Royal Mail


Sure - it 'costs' something to perform the collection , and like you I have spoken to Royal Mail representative - to ask why precisely GBP8 as their 'flat' figure??


The answer was that this is the arrangement they made with HMRC


Personally I don't see what this has got to do with HMRC, if they are only collecting the VAT for them, why should HMRC be party to determine their administration fee??


Maybe by trying to define what's involved in the collection administration process - Royal Mail can determine a 'profitable fee'.


Anyway - my gripe is with HMRC - because they and only they set the minimum VAT threshold.


So if HMRC knows that Royal Mail is going to be charging GBP8 for the administration of collecting VAT,

then they will also know that by setting the threshold level at GBP15 when VAT 'kicks-in' and thereby triggers the GBP8 administration charge,

then they must also be happy with the 2.66 times ratio of VAT charge to Admin to collect VAT ratio  >:(


This is what's not acceptable  |O


HMRC should not allow 2.66 ratio

- and if they set the VAT threshold higher
- they are not stopping Royal Mail to 'make profit'
- they are simply lowering the VAT collected to VAT collection administration ratio from the ridiculous 2.66
- to let’s say a reasonable level less than 1:1

Hope this make sense  ::)


I know this is a convoluted subject

- but remember
– the issue here is to have a fair ratio and not the ridiculous 2.66 ratio which it currently is at the current VAT threshold level   :palm:
olkipukki:

--- Quote from: noreply on June 18, 2020, 04:22:47 pm ---I ordered an item from US supplier (value ~ USD25)

...

I might be better off (next time) not bothering in buying anything which is going to be shipped with either USPS or Royal Mail - just jump straight to DHL or FedEx or UPS instead - despite the extra cost - I will get my item in 3 days and won't be hostage to Royal Mail  :P


--- End quote ---

You can either try and hope a delivery will sneak through as declared $2 stuff fron CN  :-DD, or
 find out that might happen if...  >:D


https://www.dhl.co.uk/en/express/customs_support/duties_taxes/duties_taxes_receivers.html


--- Quote ---Who is liable to pay Duty and VAT charges?
The person receiving the shipment is legally obliged to pay Duty and VAT except where the person sending the shipment has agreed to accept these charges in the contract of sale. Private individuals intending to buy goods on the Internet from non-EU countries should be particularly careful. Often the price advertised on the supplier's website will not include UK Duty and VAT and you will be expected to pay this once the shipment arrives in the UK.

Why do I have to pay Duty and VAT charges and Advance Payment / Disbursement?
We will not be able to deliver your goods to you until we have paid the Duty and VAT charges on your behalf. Some businesses have their own Deferment accounts with HM Revenue & Customs and we merely arrange for their account to be directly debited by Customs. Many other importers, particularly private consumers, do not have an account with Customs. We must therefore pay the charges on your behalf before we can deliver your goods to you. An Advance Payment or Disbursement will be added to your Duty and VAT statement / invoice for clearing the shipment through customs on DHL’s Deferment account.

How much is the Advance Payment / Disbursement I have to pay?
An amount of £11.00 or 2.5% of the total Duty and/or VAT incurred, whichever is the greater.

If the total Duty and/or VAT incurred is less than £440 then a flat amount of £11.00 will be incurred as this is less than 2.5%

For example:
If the total Duty and/or VAT amount equals £125.80, then £11.00 will apply.
The 2.5% will be incurred if the total duty and/or VAT is greater than £440.00. For example, if the total Duty and/or VAT amount equals £490.00 then an amount of 2.5% will apply i.e. £12.25.

--- End quote ---

These are EU rules, so you can blame them  :popcorn:

P.S.

Fees are part of Rip Off Britain TV show  :-+

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