Import tax for the self employed.

[elesian]

Hi, i am currrently filing my tax return. I am curious to understand about import tax.

Let us say that i buy a product which is worth £500 in the UK, but i buy it for £200 in china. My supplier has not always wrote down the correct declared (invoiced) value of the item that was shipped. For example, let us say that the declared value is £150.

When i fill out my return, will i have to pay the deficit? Obviously, i want to comply as fully with the law to balance my books, and my tax return is sound.

Thanks, ryan

[elesian]

someone must be able to answer this?

[MyAccountantOnline]

You claim tax relief on the amount you paid.

[Zeno]

Your tax return is for income tax (and CGT if applicable). Vat, import taxes etc are not shown on it.

You will account for the value you paid - the £200.

[elesian]

No i am not after tax relief. When i fill in my tax return i have to declare all imported goods and the cost of them. My connections have not been declaring the right value on the imported goods, and hence i have been paying too little import tax on aquistions i have aquired.

My question is, how can i put that right?

[Zeno]

You don't. Import taxes are not shown on your self assement tax return. When you are dealing with Chinese suppliers, you will usually find they have underdeclared the value. A lot of the time these do not get through Customs and there is little you can do to get them.

[elesian]

ok thats fine. No my items are shipped from a reputable supplier who fill out a CS13 form of declared value etc, thanks for the answer.