Sometimes I wonder why I allow comments on this blog: so many commentators promote abusive ideas or simply seek to abuse the hassle quite often seems to outweigh the benefit. Then along comes comments, like the one I’ve already referred to this morning, or this one on the fundamental problems VAT abuse through Jersey and Guernsey causes to UK small businesses, and I realise providing a voice can be worthwhile:
The whole Jersey scam makes me mad. Very simply, I am losing money..!
I sell manufacturer own ink cartridges. "I can get those cheaper on the internet" is a common cry. When compared against mainland based retailers, my customers tend to see the error of their ways finding that I am indeed cheap and pay up!
But then there are the customers who have found the sites in the channel islands.
I was horrified to find a particular item that I was selling on my shelf for £12.85 is available for £10.90 on the web site that my customer buys his inks from. Do the maths... yes, that is the same price as I am selling it without VAT!!! How can I compete when there is a built in 17.5% discount The on-line retailer doesn't even have to begin to be competitive. That particular customer could be worth £400 turnover each quarter to me on cartridges alone - not to mention the lost revenue to the public purse!
This loop hole MUST be closed. We cannot compete.
I recently had a letter from HMRC after I complained to my MP. In this letter, they stated that the VAT office are "monitoring the situation"..
I'm monitoring my P & L!
Gary,
Thame, Oxfordshire
All I can offer is best wishes to Gary — and the hope that this government might listen more than the last did on this issue.
If you want to let me know what response you et Gary I’d be happy to share it with a bigger audience.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
That it is a scam I am certain. We have been buying a certain supplement for years now. Initially, we telephoned a place in the Midlands. Then the calls were made to Guernsey, or at least a number for there, I suspect it might have been a computer relay. There is no way the items can get from Guernsey to our place that fast, they must come from not far away. But now there is no VAT. As it happens it is a specialist item but if it was a competing one then I can imagine the UK retailers ire.
@Demetrius
Items posted from the Channel Islands can be delivered in very short time, to many places in the UK.
I have posted personal packages from Jersey, via standard Royal Mail, and they have arrived at a UK address, in less than 24 hours.
Why? Because items posted from here, travel most of the distance via aircraft. Unlike many items posted within the UK, which will travel by road only.
Demetrius, Guernsey is probably a lot closer than you think! Generally first class mail is delivered the next day in the UK. If you feel srongly about this issue, I am sure there are other UK based retailers who you can buy from.
As a resident of Guernsey, we don’t want companies specifically relocating to Guernsey just to avoid VAT and low value items. These companies don’t really contribute much to our economy (although in a way they do provide a certain level of diversification away from finance). But the emphasis shouldn’t be on us, as a low tax jurisdiction, to make changes. We don’t need VAT here (yet…!) It is the responsibility of HMRC to sort this out.
Greg
That is what criminologists, somewhat crudely, call the mini skirt excuse
It’s the rapists defence that “you can’t blame me – she was wearing a mini skirt – I took that as a come on – I couldn’t help it if I got it wrong – she shouldn’t have worn the mini skirt”
Yes, that’s offensive
But it’s been said
And your comment is as offensive
Of course you’re to blame
Stop denying it
Sorry Richard, it’s nothing like that. We don’t have VAT on out island; we don’t need it. VAT is a UK tax, and therefore it is up to UK authorities to collect this tax.
But that isn’t the issue here. The issue here is that under HMRC rules, there is a threshold and goods under that threshold do not attract the tax. That’s an HMRC problem, not a Guernsey problem. All we’re doing is playing by the rules.
Richard.
Again, as mentioned on the same subject before ad nauseum. This is a UK issue. Jersey/Guernsey can’t stop it because even if they legislated against it Tesco, Amazon et al just move on to the next territory (in Tesco’s case to Switzerland). Just stop the users importing INTO the UK. Charge the VAT or impose a search fee on the packages. Simple. They don’t because they don’t want to upset…..see my previous comments on TJN blog.
@Greg
Sorry – your excuse exactly fits with what I said above
You have the choice to not abuse the rules
You do not take it
That makes you culpable
Richard, so what do you suggest our retailers do? Charge an extra 17.5% and post a cheque to HMRC? They’d probably send it back as their system wouldn’t know how to allocate it.
As Woolley says, it’s a UK issue. Don’t attack others for the failure of your own system. I guess you believe that Bolivian farmers who produce coca leaves should be punished for creating the developed world’s cocaine problems?
@Greg
You’re a lousy defendant
These are not your retailers
These are the like of Indigo Starfish – blatantly set up to abuse the VAT system
Don’t deny it
Their web sites say so
So please don’t play dumb
It does not become you
Sorry Richard, slip of the tongue. Very few of the businesses would be considered local, and we do not particularly welcome them here. But if HMRC closed the loop hole, then we wouldn’t be having this debate!