Is this tax evasion?
Discussion
Cunning scheme for a bit of tax avoidance, or obvious tax evasion?
Person A wants to buy an item worth £400 from the US.
Person A operates his own business, and has a contract with a logistics company for shipping.
A sends over the entire cost of the item to Person B, a friend living in the US. He send this by PayPal as a gift.
B then pays the manufacturer of the item, & takes delivery.
A now speaks to his logistics company, and they collect the item from B.
I assume* the logistics company ask what the item is, A tells them it's a second-hand gift.
Item gets imported into the UK, no VAT or import duty to pay as it's a second-hand item.
A takes delivery.
A believes this to be entirely legal as he gifted money to a friend, who then sent him over a completely unrelated second-hand item as B was the original owner. Logistics company then do what A tells them to do, i.e. pick up and deliver it here, and A pays whatever charges the logistic company asks for, thereby putting the onus on them to make sure the legal tax is paid as they brought the item over.
So, fellow men of wisdom on PH, what say thee? Genius, or easy pickings for HMRC?
Person A wants to buy an item worth £400 from the US.
Person A operates his own business, and has a contract with a logistics company for shipping.
A sends over the entire cost of the item to Person B, a friend living in the US. He send this by PayPal as a gift.
B then pays the manufacturer of the item, & takes delivery.
A now speaks to his logistics company, and they collect the item from B.
I assume* the logistics company ask what the item is, A tells them it's a second-hand gift.
Item gets imported into the UK, no VAT or import duty to pay as it's a second-hand item.
A takes delivery.
A believes this to be entirely legal as he gifted money to a friend, who then sent him over a completely unrelated second-hand item as B was the original owner. Logistics company then do what A tells them to do, i.e. pick up and deliver it here, and A pays whatever charges the logistic company asks for, thereby putting the onus on them to make sure the legal tax is paid as they brought the item over.
So, fellow men of wisdom on PH, what say thee? Genius, or easy pickings for HMRC?
- I have to assume at this point, as this is the only bit where Person A is a bit fuzzy with the details.
Red Devil said:
O/T. Still got your Mk3 MR2? - 
Sadly no, sold it in the summer as I needed the funds to mod the current 645ci. Cracking little thing it was, lucky I sold it to a mate who I still see, so will get the chance to drive it occasionally Person A is definitely not me
He's not bought the item yet, so this is all a bit hypothetical, however he seemed pretty convinced that it's all perfectly above board. I had my doubts, so figured I'd go in armed with back up 
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