UK based but stuck on how to work out import tax and what I need to budget for

[meely]

Hi everyone,

I'm thinking of picking out a stone and getting it set, possibly by David Klass. Then having it shipped over to the UK. I'm feeling a bit overwhelmed. Initially I was going to spend more and it would have been logical to fly over and collect it personally. Now I have lowered my budget I'm thinking I will ship it.
Can anyone advise on how I would insure the stone between buying and sending it to be set? Then insurance for the entire ring during shipping? I'm worried it will be difficult as I'm in the UK.
Then lastly on calculating taxes I would need to pay when it gets here? Obviously it has potentially a big impact on budget (probably £5000-£7000 total to give an idea)

Thank you

 

[OoohShiny]

AIUI the stone seller could ship the stone to DK and their insurance would cover it in transit.

DK would then set it and would (should...) insure the stone and ring/pendant/whatever during its transit to you as part of his shipping arrangements.

VAT is 20% on whatever you import, but IIRC there is an additional 2.5% import tax on finished jewellery (but 0% on loose stones IIRC). Shipping is usually c.US$100(ish?) and you will pay tax/VAT on the jewellery+shipping total.

So if your total budget is £7k, you have 7000/1.225=£5714 to spend on the stone and setting and shipping.

 

[meely]

Thanks ooohshiny that's great and sounds a bit simpler than I thought. However it's a massive chunk of my budget on vat which is a shame.

I wondered about getting the stone from somewhere like bluenile and then getting the setting made separately so only paying vat on the cost of that. However I don't know how bluenile's business model works so maybe I wouldn't save any money? I am looking at getting an oval rather than a round so this idea is probably not going to work?

 

[OoohShiny]

Buying from Blue Nile would involve importing the stone also, so you'd only save the 2.5% Import Tax at most.

7000/1.225 = £5714
7000/1.2 = £5833
5833-5714 = £119 saved

One could theoretically fly to the US to collect an item of jewellery, post any boxes and paperwork home so they don't get damaged during baggage handling, and accidently forget to declare the purchase upon arrival back in the country, but that would be tax evasion and illegal and couldn't be recommended on here...

I'm not sure such an action would even save much money, as a return fare plus any spending money required for the time in the US would likely cost just as much as the (7000-5714)=£1286 VAT saved, especially if the trip was for a weekend or longer and with a partner. I guess one would have a short break/holiday out of it, granted, but one never knows just how much attention HM Customs and Excise pays to an individual's expenditure and travel plans...


re: buying ovals, one needs ASET images to analyse light performance, which I believe Blue Nile does not offer, so I think the other PS-recommended vendors would be a better bet.

 

[meely]

Ok thanks I was thinking along those lines as well.

 

[Austina]

I've just had a ring made in the US (I'm based in the U.K.) but as my son lives there, I was able to get it shipped to him and I collected it when I visited. The customs officers at Heathrow were very fair, gave me a really generous conversion rate, so the tax was a less than I expected.