Since January 01st 2021, companies and consumers alike have been hit by changes and charges in a new post-Brexit world.
So, we thought we’d give you a hand with what to expect for your postal needs in the future. Here’s an update on the latest UK customs charges.
Increased tax prices
If you’re ordering from within the EU, you can now expect an additional 20% VAT on all goods valued over £135. This 20% VAT will also be charged to any shipping or customs costs, too, rather than just the item itself.
To see the tax and customs rates for gifts, you can take a look at the Gov.UK website. To summarise, despite Brexit, there should be no VAT charges on parcels sent as gifts that are worth £39 or less.
Why is my customs charge so high?
The amount of customs you’ll have to pay for your order will likely vary significantly depending on how it has been calculated. There are a variety of ways that this can be done, including:
- A percentage value of the order
- Weight of the item
- Weight of the item + a percentage
What is a customs charge, you may ask? These are charges calculated and applied by HMRC. Your courier will usually pay this fee in advance, before requesting payment from you. This tends to speed up delivery.
💡 Did You Know: Smart Parcel Box is based and dispatched from right here within the UK. That means no additional import fees or VAT when buying from us directly.
Royal Mail Brexit: Courier Fees
If those fees weren’t enough of a shock to the system, British mail couriers have also added on an extra handling fee for items shipped outside of the UK. This varies between £6 and £12 depending on the courier themselves. In plain terms, it seems like no one is happy about the extra paperwork that now has to be done. So, when a shipment arrives from within the EU, there’s an added fee. These fees can be seen below:
- DPD charge £5 + VAT
- Royal Mail charge £8
- FedEx charges either £12 or 2.5% of the customs duty and VAT combined; whichever amounts to the most is what’s charged
All charges listed are correct as of 07th April 2021.
💡 Did You Know: Our extra-large parcel drop letter box can accept most size incoming parcels? The perfect way to accept all incoming parcels, no matter where they’ve come from.
In Summary
Presently, there is a 10-12% customs charge for all bag and shoes purchases. This means, if you purchase a bag for £150, you could pay between £15 and £18 in customs charges, as well as an extra 20% VAT (£30) and any courier fees too. We’ll say that Royal Mail have delivered this item with an £8 fee.
That’s an extra £54-£56 in fees for your new bag, bringing the total paid for the bag to £204-£206, just for purchasing a product from within the EU.
Overall, we recommend all customers do some company research prior to buying to make sure the company they’re purchasing from really is in the UK. Not only does this give you a chance to support local businesses, but it means there’ll be no delays in getting your parcels, and everything (should) be delivered on time – couriers depending of course!
