It's good to save some money

isn't it?

Lots of people are getting into their Christmas shopping, and it's pretty certain that the proportion of stuff purchased online will increase again this year. And, by 'eck - aren't there some bargains out there in Internet land? How do they do it so cheaply?

Well, we could leave aside the whole vexed issue of fake & dodgy products (covered extensively elsewhere), but given the fire risk from cheap "hoverboard" copies (see here for the BBC report) you probably shouldn't.

But this post is about another of the ways to keep prices down. It's simple: when you order goods from abroad they have to come in through UK customs. The shipper has to declare the value of the consignment and, if appropriate, HMR&C will levy the appropriate duty - normally VAT. But, if the declared value is under £15, the consignment is exempt. So all the off-shore seller has to do is declare your £400 tablet as a £14.99 'gift' and bingo - you've just saved 20% on the price.

There are a couple of drawbacks. First off, it's illegal - although the offender probably isn't you. Secondly, if HMR&C do a spot check, your consignment will arrive with an invoice for the VAT. And, trust me on this, you really REALLY don't want to avoid paying that! "But" you cry, "the advert said that all the import duties had been pre-paid". That's easy to explain - they lied. You can always take it up with the supplier - but Guandong is a long way away. And I'm guessing you don't speak Chinese.

But, what the heck - you've saved a load of dosh, so it's all good. Fair enough, but I don't want to hear you winging about government spending cuts or the financial problems in the NHS. Because the VAT you've just dodged is how the government funds the public services. So it's you that is directly cutting funding to the NHS - the government is just the middle-man in this.

The damage, however, goes beyond that. Because the legitimate UK-based, VAT-paying business can't compete with the illegal import trade, and that costs jobs. Which cost the country more money. So I don't want to hear you winging about unemployment either.

And finally, if you're dodging the tax on your purchases, that puts you on dodgy ground if you get on your high-horse and pontificate about Starbucks & Amazon (et. al.) dodging UK tax. Because that's exactly what you're doing, and that'd make you a hypocrite. And we don't want that, do we?