wheels Posted November 9, 2011 Share Posted November 9, 2011 http://www.bbc.co.uk...siness-15646470 The government is to change the tax rules that have allowed retailers to avoid paying VAT by sending goods from the Channel Islands. Low Value Consignment Relief (LVCR) will not apply to goods sent from the Channel Islands to the UK from 1 April. The loophole has been used increasingly in recent years by companies selling CDs and DVDs online, such as Play.com, Tesco and Amazon. Jersey's Economic Development Minister claims over 1,700 people are employed in the fulfilment industry across the Channel Islands. Link to comment Share on other sites More sharing options...
P.K. Posted November 9, 2011 Share Posted November 9, 2011 Keep your head down and it's a nice little earner. Start to take the piss and that's what happens.... I would guess 1700 folks is over 2% of the workforce. Not good. Link to comment Share on other sites More sharing options...
Cambon Posted November 9, 2011 Share Posted November 9, 2011 The reality is that Tesco, etc. pack and ship from the UK to CI and then back on the next boat, avoiding VAT and pocketing it. Little to do with the CI businesses which are really just cottage industries. So again it is big uk companies who have crushed small businesses. uk Taxman reckons £140M lost in VAT. It is estimated that 40,000-60,000 work in this packing in UK. I wonder if the very much reduced amount of VAT they will receive as a result of this will pay for their dole? Link to comment Share on other sites More sharing options...
P.K. Posted November 9, 2011 Share Posted November 9, 2011 Tesco is not a big UK company? Shome mishtake shurely... Link to comment Share on other sites More sharing options...
Cambon Posted November 9, 2011 Share Posted November 9, 2011 Tesco is not a big UK company? Shome mishtake shurely... Read it again. Link to comment Share on other sites More sharing options...
P.K. Posted November 9, 2011 Share Posted November 9, 2011 I must be thicker than usual today. Because I can't imagine the likes of Tesco lobbying for this legislation. Besides which you could have explained it in your post above n'est-ce pas? Any other offers anyone? Link to comment Share on other sites More sharing options...
Lost Login Posted November 9, 2011 Share Posted November 9, 2011 I must be thicker than usual today. Because I can't imagine the likes of Tesco lobbying for this legislation. Besides which you could have explained it in your post above n'est-ce pas? Any other offers anyone? I'm with you on this one. I often think when reading reading Cambon's posts relating to the "offshore" world that a little knowledge is a dangerous thing. Reading his post I think that may be the case again as I can only make sense of his post if that is the case, however I prefer not to castigate because as you say his post appears to be very unclear and it would be wrong to based on a simple incorrect reading of what he has posted Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted November 9, 2011 Share Posted November 9, 2011 ......avoiding VAT and pocketing it. I dont get how they are "pocketing" the VAT? Link to comment Share on other sites More sharing options...
censorship Posted November 9, 2011 Share Posted November 9, 2011 ......avoiding VAT and pocketing it. I dont get how they are "pocketing" the VAT? It isn't the VAT they are pocketing, it is the profits from selling goods for much less than high street shops, which have to pay VAT. Link to comment Share on other sites More sharing options...
b4mbi Posted November 9, 2011 Share Posted November 9, 2011 ......avoiding VAT and pocketing it. I dont get how they are "pocketing" the VAT? It isn't the VAT they are pocketing, it is the profits from selling goods for much less than high street shops, which have to pay VAT. Mmm, not quite. It's the fact they can sell the goods at a lower price to the consumer than the high street shops because they don't have to charge 20% VAT to the consumer. There's no VAT being pocketed. It just enables them to sell their goods cheaper. Link to comment Share on other sites More sharing options...
P.K. Posted November 9, 2011 Share Posted November 9, 2011 I must be thicker than usual today. I'm with you on this one. So I AM thicker than usual today. I thought I was. Thanks for the confirmation.... Mind you, Cambon is the poster who thought a while back that gold was a bad risk. Link to comment Share on other sites More sharing options...
Cambon Posted November 9, 2011 Share Posted November 9, 2011 Mind you, Cambon is the poster who thought a while back that gold was a bad risk. It was and still is. But please go ahead and prove me wrong :-) Link to comment Share on other sites More sharing options...
John Wright Posted November 9, 2011 Share Posted November 9, 2011 The truth is that small jurisdictions on the fringes move from one loophole or tax or revenue saving scheme to the next, whether its exemption from CGT, Death Duties, CTT, IHT, VAT or captive Insurers, saving products, deposits with interest paid gross, flagging out or on line gaming via consultancy and other employment and payroll schemes. Each has a limited life before the gap is plugged, only the first few in any field make money and they constantly have to work hard to invent and exploit the next one Link to comment Share on other sites More sharing options...
censorship Posted November 9, 2011 Share Posted November 9, 2011 ......avoiding VAT and pocketing it. I dont get how they are "pocketing" the VAT? It isn't the VAT they are pocketing, it is the profits from selling goods for much less than high street shops, which have to pay VAT. Mmm, not quite. It's the fact they can sell the goods at a lower price to the consumer than the high street shops because they don't have to charge 20% VAT to the consumer. There's no VAT being pocketed. It just enables them to sell their goods cheaper. erm, that's excatly what I said - they aren't pocketing VAT, but undercutting the high street and therefore shifting more units Link to comment Share on other sites More sharing options...
pongo Posted November 9, 2011 Share Posted November 9, 2011 The truth is that small jurisdictions on the fringes move from one loophole or tax or revenue saving scheme to the next .... Each has a limited life before the gap is plugged, only the first few in any field make money and they constantly have to work hard to invent and exploit the next one That's no way to live. Link to comment Share on other sites More sharing options...
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