Something I have been pondering for a while......

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Jimmy
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Something I have been pondering for a while......

Postby Jimmy » Tue Aug 05, 2014 9:57 am

Ok this is the scenario.... You're in the US on holiday and you buy your perfect Stang which has a few choice mods (wheels / suspension etc). The car costs you I dunno lets say 20k USD which you have a bill of sale for. You arrange shipping etc back to the UK in a few days time so alls great..... Obviously you will have to pay VAT and import duty on the purchase price plus shipping when it lands in the UK which is a bit of a bummer.

But hang on a sec you have an extra few days spare before leaving and $10k spare in your back pocket so you nip down the local speed shop and mod the f**k out of it some more - supercharger, bigger brakes etc etc. You stand back and admire your handiwork.

So my Q. What would you declare to them lot at HMRC when you get back to blighty and have to settle the tax bill....??

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Re: Something I have been pondering for a while......

Postby waylander » Tue Aug 05, 2014 11:11 am

personally I wouldn't - but then again I'd be the unfortunate arsehole who got caught :(

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Re: Something I have been pondering for a while......

Postby mattmoxon » Tue Aug 05, 2014 11:33 am

Bung the SC in your suitcase ;)

Personally I'd avoid a modded car and bringing it in (unless its either Ford Racing parts or a car over 10 years old) as there might be issues come BIVA time.

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Mark Cameron
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Re: Something I have been pondering for a while......

Postby Mark Cameron » Tue Aug 05, 2014 12:22 pm

James, what have you done now? I cant afford to buy your black stang just yet!!!

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Re: Something I have been pondering for a while......

Postby Jimmy » Tue Aug 05, 2014 12:34 pm

Mark Cameron wrote:James, what have you done now? I cant afford to buy your black stang just yet!!!


Haha all totally hypothetical Mark..... at the mo lol.

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Re: Something I have been pondering for a while......

Postby Jimmy » Tue Aug 05, 2014 1:05 pm

mattmoxon wrote:Bung the SC in your suitcase ;)

Personally I'd avoid a modded car and bringing it in (unless its either Ford Racing parts or a car over 10 years old) as there might be issues come BIVA time.


Ok Matt for this exercise let's assume it's been modded with Ford Racing parts and there are no issues getting it through the IVA this end just you have a bill of sale for $20k but have invested $30k in the car so what to do come paying up into the government coffers at this end...??

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Re: Something I have been pondering for a while......

Postby LV51FER » Tue Aug 05, 2014 1:09 pm

The UK operates a recognition of the FMVSS safety standard. As long as the car is standard, the IVA is straightforward. As soon as it is modded, all that goes out of the window and you have to get it through an enhanced IVA, IIRC. It's much harder to do.

In addition, HMCE have the power to value the car and apply the tax. So for example, that bugus receipt for $5000 for a $20000 car would soon be spotted and they would value it at $20k.

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Re: Something I have been pondering for a while......

Postby Jimmy » Tue Aug 05, 2014 1:29 pm

LV51FER wrote:In addition, HMCE have the power to value the car and apply the tax. So for example, that bugus receipt for $5000 for a $20000 car would soon be spotted and they would value it at $20k.


Fair comment but in my purely hypothetical example above one would have a receipt for $20k which on the face of it would seem a fair amount for a Mustang of that age albeit there's a heavily modified motor under the hood which was performed post purchase.

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Re: Something I have been pondering for a while......

Postby waylander » Tue Aug 05, 2014 2:15 pm

why not be super-sneaky and just get a stroker motor dumped in instead... or a crate 427 :rock :rock :rock

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Re: Something I have been pondering for a while......

Postby grahamngillian » Tue Aug 05, 2014 6:20 pm

LV51FER wrote:The UK operates a recognition of the FMVSS safety standard. As long as the car is standard, the IVA is straightforward. As soon as it is modded, all that goes out of the window and you have to get it through an enhanced IVA, IIRC. It's much harder to do.

In addition, HMCE have the power to value the car and apply the tax. So for example, that bugus receipt for $5000 for a $20000 car would soon be spotted and they would value it at $20k.


I agree with luci's comments.
So its best to import the parts separately then fit them here.
PM me for a way to at least reduce the VAT/import figure but it needs the help of the parts supplier to do.

We used to import cars from Japan via Amsterdam 15-18 years ago and the one thing people did it was to under-price the invoice (not by a huge amount but given the amount of 3 year old Japs available then it was easy to soak the market and drive prices down) and then over-price the shipping. Cash out to the broker was then correct. Back then shipping was not considered for the VAT/Import calculation when coming through Amsterdam. Then as they saw this loop-hole they tightened right up and made it bas**rd to import cheaply, So we gave up.


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