This article is intended to explain the rates of duty you should expect to pay if you import stuff to the UK. Also useful would be any hints and tips to ease the importing process, gathered wisdom and the like.
Basically, it breaks down like this:
If you import anything to the UK there are 2 seperate charges to take into account here:
(There's Excise Duty, but this is charged on alcohol and tobacco products only. So unless you're trying to smuggle a bottle of Jack inside the case, we'll just move on)
Customs Duty - this is usually charged as a percentage of the value. The percentage varies depending on the type of goods and their country of origin. Duty is charged on the price paid for the goods including any local sales taxes plus postage, packing and insurance costs. However, postage is excluded from the calculation for duty on gifts sent by post except for Express Mail Service (EMS).
Where the value of gifts is below £290 per consignment a flat rate of duty of 3.5% will be applied, but only if it is to your advantage.
Note: Customs duty will be waived if the amount is less than £7.
Customs duty is not payable on goods bought from countries within the EU.
Value Added Tax (VAT) - Import VAT is charged at the same rate that applies to similar goods sold in the UK. The value of the goods for import VAT is based on the value for customs duty plus any import duties charged.
In the case of importing from the EU, VAT is payable (if due) either in the EU country of purchase, or in the UK if the EU supplier is UK VAT registered.
Technically speaking, it is fraudulent to have something declared a gift that you paid money for.
As mentioned above, Customs duty will be waived if the amount (of duty) is less than £7.
Assuming you're using the flat 3.5% rate of Customs duty, then it will be waived if the total cost of the consignment is less than £200 (3.5% of £200 = £7)
Let's say you score a bass in the USA at £100, and it costs £50 to get it delivered to the UK. Goods declared as commercial.
Total cost before charges = £150
Customs duty = 3.5% of £150 = £5.25 (therefore waived)
VAT = 17.5% of £150 = £26.25
Total cost = £176.25
Let's say you score a bass in the USA at £1000, and it costs £100 to get it delivered to the UK. Goods declared as commercial.
Total cost before charges = £1100
Customs duty = 3.7% of £1100 = £40.70 (we'll assume they'll hit you with top rate Customs duty for your extravagance)
VAT = 17.5% of £1100 = £192.50
Total cost = £1333.20
Sometimes couriers will charge a fee for presenting your goods to customs, paying the charge on your behalf then billing you.
HMRC: Shopping on the Internet
HMRC: A guide for international post users (see in particular section 3 on charges)
