Customs charges.

[Tom Pack]

Unfortunately, vatVAT has to be paid. I am not vat registered because I am nowhere near the threshold. I have to pay vat on all of the wood I buy but cannot claim it back or build that cost into a kit. There are a lot of small businesses that suffer because of the vat they have to pay out that they cannot claim back I personally think that the small business should be exempt from paying vat on goods that they rely on for their business. Doing that, in the long run, would help them grow to the point where they may have to register.

Not familiar with how VAT computation works but why can’t you build that cost into the kit price? I mean it is a cost you have to pay to be able to “manufacture” your product just like the cost of wood…laser wear and tear….shipping boxes……drawings……and everything else it takes to make a “kit”……

[Cliff Evans]

Because to me that would be morally wrong.

[Barry_Cole]

It's the way eveybody else does it.

BC

[Cliff Evans]

It's the way eveybody else does it.

BC

Maybe they do. Let me put it another way. I am a small trader and like many others, I am struggling. Despite people saying that the kits I sell are too expensive, I am cheaper than most but even so, people seem to be prepared to pay considerably more for similar kits from across the water and pay vat and import. Having seen some of the cutting that these kits offer I would also say that the quality I provide is better. I have also spoken to one well-known manufacturer in Poland about future kits and how it would benefit both of us not to duplicate kits that we produce. He basically told me to F off and that he would produce whatever he wanted.

Now on to Pat Teakle Kits... I can no longer get foam wings cut for these kits and when I could, shipping was extortionate. Now I provide the Pat Teakle range with wing kits to be built which has reduced the cost of the kits considerably. All I get is people calling me to ask" Do you know of any second-hand models available"

Why do I bother?

[Adam C]

Modellers are real tight wads when it comes to paying out for a kit of any quality. No one values the R and D involved. I relaised very quickly I do not like cutting ribs by hand!!!

My reason to shop abroad is to source and build different unusual designs not yet modelled and to take advantage of modern self jigging CAD designs which are rare in the UK. I must have bought 5 so far with several more due soon. There seems to be a lot of this in the EU with people designing, cutting and selling their creations directly and not even getting involved in selling older traditional designs.

[mjcp]

Unfortunately, vatVAT has to be paid. I am not vat registered because I am nowhere near the threshold. I have to pay vat on all of the wood I buy but cannot claim it back or build that cost into a kit. There are a lot of small businesses that suffer because of the vat they have to pay out that they cannot claim back I personally think that the small business should be exempt from paying vat on goods that they rely on for their business. Doing that, in the long run, would help them grow to the point where they may have to register.

You can voluntarily register for VAT, there is no requirement to be at or approaching the threshold to register. Granted, registration comes with a bit of additional paperwork and you get to collect tax on behalf of Gov't Plc, in return, you get to claim back VAT. In theory, you should only end up "out of pocket" for the VAT on your effort *... (not really out of pocket, but that's how it feels ) . Depending on the flat rate scheme you fall into, you may even find its a slight win for you... (Where the flat rate they offer is a better net than if you do it long hand)

As for its impact on price, as you have said, all your competitors are charging it too... so it shouldn't be a differentiator.

* Everything you buy is 20% cheaper (phone, portion of electric, materials, web hosting etc etc - whatever you can justify as "business") less everything you sell / dispose of is 20% more.

M

[Cliff Evans]

I have been vat registered in the past and found that the hastle involved for me, was just not worth it.