Im thinking of asking a family member to bring over a birthday present of a frame worth well over £1000 from USA when they visit next year. Can someone advise on wheather this is all perfectly above board and we wont have to pay import duty/tax on it please.
I'm not 100% sure but I think it still qualifies for import duty/tax even if it's a gift. see [url= https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users ]Customs duty[/url]
Its an import - someone gets to pay duty and VAT on it if you want to do it all above board.
Get them to bring it over as a bike to use on holiday, then replace it with a BSO for the return journey.
You'd be liable for:
Customs duty & import VAT as it's from outside the EU and over £135 IIRC
looks like they'll need to declare it, and pay VAT & customs duty on it as although it's a gift it's value is over the threshold (£39 far VAT & £135 for import duty) [url= https://www.gov.uk/goods-sent-from-abroad/tax-and-duty ]https://www.gov.uk/goods-sent-from-abroad/tax-and-duty[/url]
or just get them to stick it in a box that's used and not declare it like everyone does.....
Get them to bring it over as a bike to use on holiday, then replace it with a BSO for the return journey.
That would be tax evasion.
Sweet!That would be tax evasion.
That would be tax evasion
Tax evasion or Tax avoidance?
I know that one of these is legal of you are rich or an MP. Both illegal if you are neither of the above though.
Get them to bring it over as a bike to use on holiday, then replace it with a [s]BSO[/s]classic he's seen here that he would rather take home.
Both illegal if you are neither of the above though.
No. Tax avoidance is legal for anyone.
It is (literally) using legal means to minimise tax payable.
(Regardless of your bank balance or parliamentary status)
Tax avoidance - going to the USA and buying a bike and riding it there and never coming back, nothing illegal there (Visa issues aside)
Tax evasion - going to the USA and buying a bike and smuggling it back to avoid buying it in the UK and having to pay VAT and duty on it.
Bear in mind that it would be worth you phoning the shop in the US to pay for it so the receipt is in your name should there be any warranty issues.
also think on, if you are going to di it properly and pay import tax, then you should be able to reclaim the tax paid in the US when you export it
You can't reclaim sales tax when exporting goods from the US.
I would buy it from a state with no or little sales tax though.
Easy one, It's 2nd hand 🙂
Easy one, It's 2nd hand
Sounds easy. Too easy? Don't know how they'd prove it wasn't bought unused 2nd hand off craigslist?
The handedness is irrelevant. You still have to declare it and pay VAT & duty on the value. Obviously you can lie about the value, dunno how much hassle it'd be if they don't believe you though.
Sounds easy. Too easy? Don't know how they'd prove it wasn't bought unused 2nd hand off craigslist?
You would still have to pay duty and VAT on it's s/h value.
It's hypothetical though as clearly the OP isn't going to declare it at customs.
But if they do stop you and you can't prove it was bought in the UK then you could be charged duty on the RRP of the bike in the UK. Never heard of it happening with bikes, but occasionally happens to photographers or people traveling with other tech equipment. In principle you should always get a carnet for anything of value you take out of the country, which then lets you bring it back without having to pay duty on it.