Importing a product into the UK for sale?

How much the items will have cost you including VAT. You then have to add any shipping charges plus take into account exchange rates and charges from your bank if you're paying in dollars from a UK sterling account.

Oooh - ninja edit there Ewaf, short version - yes. Don't forget to add shipping charges and that your credit card/bank may use a different exchange rate and charge comission when you're working out your total costs.
 
It's effectively the total cost to you to buy the items. But it will actually be a slightly different cost due to the actual exchange rate and transport costs you pay.
 
OP - don't become a Ltd. company and don't register for VAT would be my advice. It's too much hassle for a small operation. I'd also advise against telling HMRC you're self-employed until you start shifting significant units personally. The stiffs will tell you to get it done straight away, but even if someone at HMRC catches on, the penalties for a small operation are tiny anyway (something like £100 if you're making less than £4k iirc).

As soon as you display the characteristics of a trade, i.e. lots of transactions, intention to make profit, short stock-holding period, etc., you are technically liable to register for self-assessment...but...
 
If the product will really be that popular then all that will happen is that you'll sell a few, and then someone with more money and more business sense than you will copy the idea and steal the market. :p
 
Robbie G said:
OP - don't become a Ltd. company and don't register for VAT would be my advice. It's too much hassle for a small operation. I'd also advise against telling HMRC you're self-employed until you start shifting significant units personally. The stiffs will tell you to get it done straight away, but even if someone at HMRC catches on, the penalties for a small operation are tiny anyway (something like £100 if you're making less that £4k iirc).

As soon as you display the characteristics of a trade, i.e. lots of transactions, intention to make profit, short stock-holding period, etc., you are technically liable to register for self-assessment...but...
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I see what you're getting out...I don't want to get stung though! I think I'm just gonna go for it for now with a small quantity and see how it sells. I need to set up a site too, intending to just buy a wordpress shop theme, simple yet very effective.
 
Robbie G said:
OP - don't become a Ltd. company and don't register for VAT would be my advice. It's too much hassle for a small operation. I'd also advise against telling HMRC you're self-employed until you start shifting significant units personally. The stiffs will tell you to get it done straight away, but even if someone at HMRC catches on, the penalties for a small operation are tiny anyway (something like £100 if you're making less than £4k iirc).

As soon as you display the characteristics of a trade, i.e. lots of transactions, intention to make profit, short stock-holding period, etc., you are technically liable to register for self-assessment...but...
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i agree

for what your are doing, just do it

see that it works

and worry about the rest afterwards
 
Ok, thankyou for the advice guys, exactly what I was looking for. Will probs set up site etc this weekend.

Much appreciated! If it takes off I will give all the people who have given helpful information a freebie ;)
 
Van Hellseek said:
If the product will really be that popular then all that will happen is that you'll sell a few, and then someone with more money and more business sense than you will copy the idea and steal the market. :p
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Not if the product is exclusive to one supplier and that supplier agrees to give him exclusive UK distribution rights.

Ewaf said:
I see what you're getting out...I don't want to get stung though! I think I'm just gonna go for it for now with a small quantity and see how it sells. I need to set up a site too, intending to just buy a wordpress shop theme, simple yet very effective.
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Ok, but you'll be filling out self-assessments forever even if nothing comes of it!
 
I wouldn't bother with any business registering or such for a small enterprise like this, unless it takes off and you start importing and selling loads.
 
Robbie G said:
The stiffs will tell you to get it done straight away, but even if someone at HMRC catches on, the penalties for a small operation are tiny anyway (something like £100 if you're making less than £4k iirc).
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Are you kidding? Once they find out you've tried to defraud the government they go into full inspection overload. Everything you've ever done is checked to make sure you've been paying your tax.

That said, you do legally have a 3 month window from the start of trading before you need to register yourself as self employed. If it doesn't take off then you can close it down and just register the small amount you did earn as part of your tax code, then it is accounted and paid for.

If you really want good advice, ring the HMRC. They are there to help and answered all my questions when I rang a few weeks ago.
 
gord said:
Are you kidding? Once they find out you've tried to defraud the government they go into full inspection overload. Everything you've ever done is checked to make sure you've been paying your tax.

That said, you do legally have a 3 month window from the start of trading before you need to register yourself as self employed. If it doesn't take off then you can close it down and just register the small amount you did earn as part of your tax code, then it is accounted and paid for.
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Humm, ok thanks for the input!
 
Ewaf said:
Ok, pretended I was buying 10 at $10 value:



So basically if I buy 10 thats how much VAT I'd be paying on them? £89.47?
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Seriously if you can't work it out from the numbers you had there, then this is doomed to failure and you should stick to your day job.

It tells you quite clearly what the VAT is!
 
[TW]Fox;19393856 said:
Seriously if you can't work it out from the numbers you had there, then this is doomed to failure and you should stick to your day job.

It tells you quite clearly what the VAT is!
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If you have nothing useful to say then hold your tongue, I am new to this hence why I have asked (and received) for help.

Cheers
 
Ewaf said:
If you have nothing useful to say then hold your tongue, I am new to this hence why I have asked (and received) for help.

Cheers
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If you need help to understand that 'Total import duty & VAT due: £14.91' means that the total VAT and import duty due is £14.91 then my point is even more important than I thought.

Are you just going to attack everyone who doesn't tell you everything you want, on a plate, free of charge?
 
[TW]Fox;19393898 said:
If you need help to understand that 'Total import duty & VAT due: £14.91' means that the total VAT and import duty due is £14.91 then my point is even more important than I thought.

Are you just going to attack everyone who doesn't tell you everything you want, on a plate, free of charge?
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Attack? God you're a bit fragile aren't you! To some that might of been obvious but I have no knowledge of this field, you have to start somewhere.
 
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