Royal Mail customers sending or receiving gifts from abroad this Christmas should be aware of a £135 rule that could result in additional fees. The postal service warns that some goods imported into the UK “may be subject to VAT and customs duties.” While letters, postcards and documents are typically exempt, these charges could become more common in the run-up to Christmas—for example, when ordering a present from overseas or receiving a gift from friends or family living outside the UK.
How the £135 rule works
Royal Mail explains: "VAT and customs duty may be applied depending on the type and value of the goods. VAT on items under £135 (except for gifts) will be accounted for and collected directly at the point of sale."
"For items containing goods with a value over £135 and gifts over £39, customs charges will continue to be applied on behalf of HM Revenue & Customs (HMRC). Royal Mail will collect these directly from the recipient prior to delivery. Letters, postcards and documents are usually exempt."
Why have I been charged a customs fee?
Royal Mail says it is legally required to hand all items arriving in the UK to Border Force. Parcels and letters may then be inspected and, in some cases, customs charges could apply.
It explains: "Any charges are calculated and applied on behalf of HM Revenue & Customs (HMRC). These charges aren’t applied by Royal Mail."
How much is the customs fee?
The fees depend on what’s in the package, where it has come from and who sent it. Letters, postcards and parcels containing only documents are usually exempt. For items sent through the post, Royal Mail pays any import VAT and customs duty to HMRC on your behalf so the item can be delivered to you as quickly as possible.
It explains: "We’ll then send you a Fee to pay card. This shows how much you need to pay before you can receive your item. The amount will include our £8 handling fee."
Its handling fee is said to reflect the cost of clearing items through customs, as well as presenting them to customs. This includes costs for handling through customs, cash handling at the delivery office, administration, storage and staff.
When do I need to pay the charges?
Royal Mail says it can’t release your mail until all charges and fees have been paid in full. You have 21 days from the date on the “Fee to pay” card to settle the amount—otherwise you won’t receive your item.
Royal Mail says if the charges aren’t paid within the timeframe, the item will be returned to the sender. If you’re paying online, you must make payment within 19 days of the date the card expires, to allow time for your item to be delivered.
If you no longer want the item, you’ll need to confirm this online at royalmail.com/pay-a-fee. Royal Mail will then return it to the sender. If you decide you don’t want the item while you’re at the Customer Service Point (instead of confirming online), tell a member of staff, and they’ll arrange for it to be returned to the sender.
