NEW UK IMPORT VAT RULES IF UK LEAVES EU WITH NO DEAL

New UK import VAT rules if UK leaves EU with no deal

With the UK been given a six-month extension to leave the European Union, a no deal could still every much be on the cards. If the United Kingdom (UK) leaves the European Union (EU) without a deal, the UK import VAT rules will change for goods sold to UK buyers that are sent in parcels. The changes will affect the rules for reporting and paying UK import VAT and will impact sellers outside the UK.

Current rules while the UK is in the EU

Under the existing rules, parcels imported into the UK from the EU are not subject to import VAT. For imports from non-EU countries, the goods are subject to import VAT unless they are covered by low value consignment relief, currently £15 or less per packet.

Rules after the UK has left the EU

The rules differ depending on the value of the goods in the parcel. Low value consignment relief is withdrawn.

  • Parcels with a value of £135 or less

Sellers outside the UK sending parcels to the UK where the value for all goods in the parcel is £135 or less, must pay the UK import VAT for any parcels sent to UK buyers after the UK leaves the EU. This includes the situation where goods were sold before the UK leaves the EU, but not sent until after. Sellers outside the UK include those in the EU, those outside the EU and the Channel Islands.

For the Isle of Man (IOM) and UK, VAT is treated as one, so VAT will have been charged by the IOM supplier, where appropriate.

This will include any goods worth £15 or less as they will no longer be eligible for the existing tax relief.

VAT will only be applied where the goods being purchased would be subject to VAT if purchased within the UK.

  • Parcels with a value of more than £135

When the value for all goods in the parcel is more than £135, UK buyers will need to pay the UK import VAT and any customs and / or excise duty on these goods. The parcel operator will apply any necessary charges to the parcel and seek the payment direct from the UK buyer. For excise goods – import VAT, Customs and Excise duty is due regardless of value, and will be collected directly from the UK buyer by the parcel operator.

If sellers outside the UK sell goods above and below the £135 threshold to UK buyers, the seller should only report and pay the UK import VAT on parcels containing goods worth £135 or less .

There will be two ways for sellers outside the UK to pay the UK import VAT. HMRC’s new online parcel registration service is open and overseas businesses are encouraged to register now and get their parcels reference so they are ready to use it if the changes are introduced in case of no deal. Alternatively, they can pay a parcel operator that offers a service to pay the UK import VAT to HMRC on the sellers’ behalf.

If sellers do not follow the new UK import VAT rules, parcels may be delayed or stopped from entering the UK. In addition, the UK buyer may have to pay extra tax and fees, and the seller may have to pay a penalty of £1,000.

More information about these potential changes, or others in the event of the UK leaving the EU without a deal can be found at www.gov.uk/government/collections/import-vat-on-parcels. A communications pack on this topic is also available on GOV.UK.

BCTF 2019 AWARD WINNERS REVEALED…

The winners of the BCTF Awards 2019 were revealed at a ceremony held on the afternoon of Monday April 8 at the Yorkshire Event Centre, Harrogate, where the very best designer-makers are presenting their latest collections to the trade.

The winners are as follows:

Form & Function Award sponsored by The Platform Gallery: Joint Winners – Ellen Monaghan, Helen Eastham Studio, Kevin Hutson, Sarah Saunders Ceramics, Rebecca Perry Ceramics and Cinda Clark Design.

BCTF Award for Excellence sponsored by the Pyramid Gallery: Winner – Melina Xenaki Ceramics; Highly Commended – Ugly Jewellery and DW Glass

Best Newcomer Award sponsored by the Heart Gallery: Winner – Faye Hall Design; Highly Commended – Betsy & Els.

Winner Sandra Vick

Post Newcomer Award sponsored by ACID: Winner – Sandra Vick

Winner Rachel Thornton

The Giftware Association Award for Excellence: Winner – Rachel Thornton

Winner Francesca Marcenaro

The NAJ Award for Excellence: Francesca Marcenaro

Greeting Card Award sponsored by Greetings Today magazine: Winner – Citrus Bunn; Just Because – Betsy & Els; Highly Commended – Claire Baxter Fine Art; Commended – The Three Foxes and Jill Ray Landscapes

Wow Factor Award sponsored by DesignGap/ArtGap: exhibitors selected Kate Toms as the winner from a short list of three, which also included Melina Xenaki Ceramics and Jack McGonicle Ceramics.

Show organiser, Margeret Bunn said: “BCTF is a real celebration of all things British and handmade, and our award winners represent that brilliantly and I am delighted to congratulate them all for their well-deserved accolades. We are very fortunate that our awards are supported by important industry associations, prestigious galleries and trade press, so a big thank you to them all for getting behind the show and supporting the best of British here today.”

BCTF 2019 has proved to be a success, with visitor numbers up and many exhibitors reporting that trade has been exceptional as retailers lined up to place orders on their stands.

“It has shaped up to be a fabulous edition of BCTF,” Margeret confirmed. “Buyers are aware that demand for handmade British products has increased over the years and they are keen to offer something new and unique to their customers. We have some incredibly talented designer-makers from all parts of the UK who are creating the most beautiful crafts, so it’s well worth the visit for gallery owners, gift shops, tourism destinations and other discerning retailers”.

For more information visit www.bctf.co.uk

Press contact: Charlotte Cowell: 01442 863646 / 07725 181974 / charlotte@bctf.co.uk

FINALISTS REVEALED FOR THE 2019 SUPPLIER STATIONERY AWARDS

Stationery Awards Logo

With 11 product categories, a Good Design category and a Judges’ Choice Award to select during their judging day last week (April 3rd), this year’s judging panel for the Supplier Stationery Awards spent the day surrounded by the latest stationery product developments and ideas.

“Ably guided once again by chair Henri Davis, our hard-working judges gave up their day to review the Supplier entries – which this year came to just over 370 items!” said event manager Hazel Fieldwick. 

“This year’s judging line-up represented a wide cross-section of stationery retail and they all enjoyed meeting and getting to know each other during the judging process.”

This year’s judges are Abigail Ball – deputy stationery and card buyer at Fenwick, Chris Lambert – founder of Scrawlr, Debbie Wigglesworth – consultant at The Paper Passionist, Katy Golden – head of gift at The Great British Card Company, Mark Hayhurst – editor at Craft Business, Sarah Laker – owner of Stationery Supplies Marple and Sidonie Warren – co-founder of Papersmiths.

This is the first time the Supplier Stationery Awards have been judged prior to the Stationery Show but organisers were keen to give the judges more time to review the hundreds of products that are entered.

“The judging panel will be on hand at the Awards Evening to help us hand out the Winner trophies – they did a great job for us, so will be good to give them a round of applause too!” said Hazel.

The finalists in each category are listed below and the winners will be announced at the Stationery Awards Evening on Tuesday, 30 April.  All finalists will be allocated two tickets to the Awards Ceremony and will be contacted shortly so that they can nominate who they would like to attend.

The finalists are: (this info has also just been revealed on www.stationeryawards.co.uk)

Art & Crafts – Sponsored by Craft Business:

Company Product
Stone Marketing Ltd ABT Dual Brush Pens (Set of 6) – NEW Candy and Vintage Colours by Tombow
Chameleon Art Products Ltd Chameleon Fineliners
West Design Products Marabu Textil Screen Printing Set
Securit by Vermes BV Woody Transparent Chalkboard

Desk Accessories:

Company Product
COLOP UK Ltd e-mark
Brahman Design Høvel
Stone Marketing Ltd Mina LED Desk Lamp by Lexon
Lime Stationery & Art Pininfarina Codex Desk Accessory

Diaries, Organisers and Calendars:

Company Product
Busy B Bridesmaid Planner
Hello Day Chic Grey Planner
Busy B Goals Diary
Quadrille Publishing Oliver Bonas: Work Hard, Play Hard & Be Kind A6 2019 Diary

Everyday Writing Instruments:

Company Product
FLB Group/Filofax Clipbook Erasable Pen Range
Studio Pens (UK Distributor) Kaweco FROSTED Sport Series
Portico Designs Ltd Sky + Miller Pens
Lime Stationery & Art Troika Construction Pen Brass

Filing & Storage:

Company Product
ExaClair Limited 1928 Filing & Organisation Range
JPT EUROPE LTD KRAFT
West Design Products Noteworthy Metallic Mono Pop-Up Pen Pot
Durable VARICOLOR® MIX

Gift Packaging & Wrap:

Company Product
Quadrille Publishing Cath Kidston: Eiderdown Rose Wrapping Paper Book
Paper Mirchi Hand Batiked Gift Wrap
Paper Mirchi Hand Tie Dyed Gift Wrap
ExaClair Limited Tiny Roll Kraft Gift Wrapping Range

Licensed Stationery:

Company Product
Portico Designs Ltd Alice Scott Range
Quadrille Publishing English Heritage: Fold & Post
Quadrille Publishing I Like Birds: Garden Birds Weekly Planner
Portico Designs Ltd Joules Range

Notebooks & Journals:

Company Product
Quadrille Publishing A Mother’s Memory Journal
LEUCHTTURM1917 Bauhaus 100 years
Stone Marketing Ltd Candy Notebook by Nuuna
Derwent Derwent A5 Bullet Journal Set
NUCO INTERNATIONAL LTD NU: Stone Vegan Leather A5 Journal & NU: Stone Flexible A5 Journal
Busy B Pregnancy Journal

Novelty Stationery:

Company Product
Securit by Vermes BV 3D Chalkboard Whale by Securit®
Lime Stationery & Art Derwent Secret Map & Compass Pencil
ZEBRA PEN (UK) LTD MILDLINER
Handy Spelling Table Colouring Placement

Social Stationery:

Company Product
Envelopes Ltd Flutelopes
Petra Boase Ltd GC-PBC-0006 Panda Balloon Card
BrownTrout Publishers Ltd Stay Gold de Luxe Flat Notes
Cambridge Imprint LLP The Concertina Card Range

Writing Instruments over £25 RRP:

Company Product
Stone Marketing Ltd Claim Your Style 849 Ballpoint Pen by Caran d’Ache
Manuscript Pen Company Modern Calligraphy Gift Set
Lime Stationery & Art Pineider Mystery filler demonstrator pen
Lime Stationery & Art Troika Capmatic Pen

Good Design – Sponsored by The Giftware Association:

Company Product
Paper Mirchi Handcrafted Artisan Gift Wrap
VENT for Change Ideas Collection
ExaClair Limited Tiny Roll Kraft Gift Wrapping Range

The ‘Best of the Best’ Judges’ Choice Award Winner will be announced on 30 April…

ENDS | For further info please contact vanessa.fortnam@stationeryshow.co.uk  | 01666 824624

FINALISTS ANNOUNCED FOR THE 2019 DESIGNER STATIONERY AWARD

This year’s new ‘Stationery Designer’ category has been introduced with the support and sponsorship of GO Stationery, which as a UK manufacturer, is in the almost unique position of being able to nurture a stationery product through its life – from conception and design, right through to retail sale.

Entrants for this Award were asked to supply a maximum of three A3 design boards showing at least three stationery items with the theme ‘The Next Big Thing’.  They had to explain who they thought their designs would appeal to and give an indication of what they thought the likely RRP of each item would be.

This design competition is a unique opportunity for budding stationery designers to work with an experienced production and sales team and see their ideas taken into production and delivered to retailers throughout the UK.  The lucky winner from the finalists below will work with the GO Stationery team to bring their designs to life!

The finalists are listed below, and the Winner will be announced at the Stationery Awards Evening on Tuesday, 30 April.  All Finalists will be allocated two tickets to the Awards Ceremony and will be contacted shortly so that they can nominate who they would like to attend.

The Stationery Designer of the Year 2019 Award finalists are: (this info has also just been revealed on www.stationeryawards.co.uk)

Designer Company
Laura Jackson Laura Jackson Design
Nina Dogmetchi Nina Nou
Soula Zavacopoulos The London Studio
Sian Towner Tiny T-Rex Tales

ENDS

Editors’ Note:

The GO Stationery team is passionate about producing great stationery designs and products for many of the UK’s leading retailers. Based in West London, and proud to be a UK manufacturer, it has a great track record of working with retailers from stationery specialists to fashion brands to develop great quality, market-leading, on-trend stationery.

For further info please contact vanessa.fortnam@stationeryshow.co.uk  | 01666 824624

PROVIDED BY T H MARCH – THE COST OF INSURANCE

The content of this Risk Insights is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject

matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to

seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2015 Zywave, Inc. All rights reserved.

Many businesses risk their own survival by unwittingly remaining underinsured. Follow these tips to ensure your business has the proper cover to defend against disaster.

The Dangers of Being Underinsured Many businesses, regardless of industry, are risking their own survival by unwittingly remaining underinsured. The problem is widespread and perennial, and a cataclysmic event can strike at any moment, leaving businesses vulnerable to complete destruction.

A 2012 survey from the Building Cost Information Service found that 80 per cent of commercial properties in the United Kingdom were underinsured. An October 2014 survey of small- and medium-sized businesses in the UK found that about 62 per cent of respondents were underinsured due to a lack of business interruption insurance or because they did not even know if this type of cover was included in their business insurance policy.

You may only find out that your business is underinsured when you experience a major loss event, such as a data breach, flood or fire, and need to make a claim. Be proactive and know your status now so you can fix that gap and be prepared for anything.

What Does It Mean to Be Underinsured?

If your business is underinsured, it means that you possess policies but your assets are valued and insured at less than their true value, leaving your business inadequately protected. Therefore, in the event of a disaster, you would be compensated for less than the true value. A shortfall in your insurance payout could ruin your organisation.

Businesses can be underinsured for many reasons.

Often it is because business owners think that a major loss event will never happen to them, so they do not need comprehensive protection. But inclement weather, a cyber-security hack or a destructive fire can impact and destroy any business. Business owners may fail to review their cover and leave sums insured and estimates untouched for years, despite major changes at their organisation such as additional employees, new equipment or recent construction. And because buildings and content are typically insured for their reinstatement value (how much it costs to rebuild), neglecting to habitually update your sum insured could mean you are only insured for the initial market value (the price of the property when you bought it) and thus, you would only

be partially covered by your policy for rebuilding costs in the event of a partial or total loss.

Sometimes business owners choose to underestimate building costs and remain underinsured simply because they want to save money on their insurance premiums. But the short-term savings can never compensate for the out-of-pocket payments required to complement your insurance payout in the event of an insured disaster.

There are many different reasons businesses find themselves with inadequate insurance cover—but the most important thing is to recognise when your business is underinsured, to understand the attendant risks and to take action that increases your cover.

The Dangers of Being Underinsured

What Is the Danger of Being Underinsured?

Being underinsured threatens a business’ entire survival. A single loss event, no matter how trivial, can be disastrous if a business is underinsured and thus receives an insurance payout following the loss that is insufficient to return the business to its pre-loss position.

But a meagre sum insured is not your only threat—an inadequate indemnity period may cause insurance payments to stop before a business fully recovers after a loss. This could leave your business half-recovered and stagnant once the indemnity period on your insurance policy expires.

 The same applies to undervaluing your business’ revenue—if you choose a sum insured that does not accurately reflect your business’ revenue, you could receive only a fraction of your losses under a business interruption policy. Insurers can even void cover on the grounds of misrepresentation or non-disclosure, such as providing figures that incorrectly value the property or underrepresent your revenue.

Being underinsured leaves your business vulnerable to financial ruin. With weak, inadequate insurance cover, you may need to close for an extended period of time—or even forever if your cover fails to account for the total cost of returning to business.

Which Policies Are Most Often Underinsured?

Any commercial policy can be underinsured, but insurers report that the following are the most commonly underinsured policies:

Buildings – Business owners often only consider the market value of a building and ignore the actual cost of rebuilding. Failing to regularly reassess the value of your property and adjust your policy accordingly could lead to your business being underinsured and consequently unprepared for even the smallest losses.

Machinery and plant – A frequently updated list of all machinery and plant is the best way to ensure it will all be covered when making a claim. Reflect any changes in your machinery and plant by adjusting your sum insured.

Business interruption – The inability to maintain business operations in the wake of a crisis can be devastating. Possessing a current continuity plan and the insurance payout to cover it are essential.

Cyber liability – Data breaches are an increasing threat to businesses of any size. Improving your cyber security and developing an action plan are now necessary business practises to offset the potentially huge losses of a data breach.

How Can I Avoid Being Underinsured?

You can prevent your business from being underinsured by accomplishing the following:

 Provide the cost of rebuilding the property (including the costs of demolition, materials and professional fees) to your insurer rather than the market value or the amount you purchased it for.

 Calculate and use your actual total revenue.

 Conduct regular, accurate valuations of your business and property.

 Determine an appropriate indemnity period that allows your business enough time to recover.

 Review your policy wording to ensure you have the broadest cover possible.

 Increase your sum insured to reflect inflation.

Complete Your Cover

Your business is your lifeblood, and you should do everything you can to protect it—this includes properly insuring it against any possible damage. T.H. March is here to help you review your policies and to ensure that you are covered for any type of claim.