How to export business to Jersey

[aceparts_com]

More of a curiosity question than anything. We sell lots of items over the internet and with the forthcoming Royal Mail postal price increases look ahead to tougher times, especially when we compete with all these pseudo businesses that pay neither vat nor tax.

Now, from what I can tell it's cheaper (or at least will be) to send post from Jersey and there is no vat to be charged?

What would we need to do to satisfy everyone and set up a business on this outpost? I understand Tescos have a branch there already to handle internet orders?

[Eric Mc]

Thre have been some recent changes to the tax and VAT legoislation to prevent UK based businesses using Jersey or other Channel Islands in this manner.

Check out HMRC website to see what these changes are.

[aceparts_com]

Thanks. I've just had a look at the Jersey Business website. Basically if you're outside Jersey the deal for low tax/vat ends in 2006.
To live in Jersey you have to guarantee to pay a minimum of £100K in tax a year. That could seriously offset the 50 pence saving on postage we could make