How to Claim Duty and VAT from HMRC if goods arrive in the UK before ToR relief was granted

Moving to the UK involves a lot of planning, especially when it comes to importing personal belongings from overseas. The Transfer of Residence (ToR) relief allows individuals to import goods without paying import duties or VAT when relocating to the UK. However, it’s not uncommon for goods to arrive in the UK before ToR relief has been officially granted by HMRC. If this happens, you may still be eligible to claim back the duty and VAT you paid upon import.

In this article, we’ll walk you through the process of claiming duty and VAT back from HMRC when your goods have arrived in the UK prior to the approval of ToR relief.

What is ToR Relief?

The Transfer of Residence (ToR) relief is a customs relief granted to individuals moving to the UK. It allows personal belongings and household goods to be imported without the need to pay import duty or VAT, provided certain conditions are met:

  • The goods must have been owned and used by the individual for at least six months before moving.
  • The goods must arrive within 12 months of the individual’s move to the UK.
  • The goods must not be sold, lent, or disposed of within 12 months after their arrival in the UK.

However, the application process for ToR relief can take some time, and in certain cases, goods may arrive in the UK before the relief is granted. When this happens, importers may be asked to pay duty and VAT upfront.

What to do if your goods arrive before ToR relief is granted

If your goods arrive in the UK before ToR relief is officially granted, don’t worry — you can still claim back any duty and VAT that you paid. Here are the steps to follow:

Step 1: Ensure Your ToR Application is Submitted

First and foremost, make sure that your application for ToR relief has been submited to HMRC. This can be done online using the ToR1 form, available on HMRC’s website. The sooner you submit your application, the quicker HMRC can process it.

If your goods arrive in the UK before you have received confirmation of your ToR approval, HMRC will likely charge duty and VAT at the point of entry. This is because the relief is not automatically applied if your ToR has not been granted yet.

Step 2: Pay the Duty and VAT at the Time of Import

If your ToR relief has not yet been granted, you will need to pay the import duty and VAT to clear your goods through customs. This payment is often made to your freight forwarder or shipping agent, who will handle the customs clearance process on your behalf.

Make sure to keep all the relevant documentation related to the payment of duty and VAT, including:

  • Import declarations (C88 or Single Administrative Document)
  • Commercial or pro forma invoice from the shipping company
  • Proof of payment (receipts or bank statements)

These documents will be needed when you file your claim for a refund.

Step 3: Receive Your ToR Approval

Once your ToR application is processed and approved, HMRC will send you a confirmation of ToR relief, which officially grants you the exemption from duty and VAT for your imported goods.

Step 4: Submit a Claim for a Refund

After receiving your ToR approval, you can proceed with submitting a claim for a refund of the duty and VAT you paid at the time of import. To do this, you’ll need to submit a claim to HMRC using the C285 form, which is the official form for claiming customs duty and import VAT refunds.

Here’s what you’ll need for the refund claim:

  1. C285 Form: Complete the C285 form, available on the HMRC website. This form requests details of the duty and VAT paid, the reason for the claim (in this case, retrospective ToR relief), and your contact and banking information for the refund.

  2. Supporting Documents: Attach copies of the following documents to your C285 form:

    • Your ToR approval confirmation from HMRC
    • Proof of payment for duty and VAT
    • Import documentation 

  3. Submit the Claim: Once you’ve completed the C285 form and gathered the necessary documents, submit your claim. You can do this by post or electronically, depending on HMRC’s submission requirements at the time. If needed, you can also request a help with such claim by Bright Customs, ask us for more details.

Step 5: Wait for the Refund

HMRC will review your claim and, once verified, issue a refund for the duty and VAT you paid. The process can take several weeks, depending on HMRC’s workload, so be patient and ensure that all documentation is accurate and complete to avoid delays.

Important Considerations

  • Time Limits for Refund Claims: It’s important to submit your claim for a refund within three years of the date the duty and VAT were paid. Claims made after this period may not be accepted.
  • Double-check the ToR Requirements: Before submitting your claim, ensure that your goods meet all the requirements for ToR relief. HMRC will only approve refunds if the goods qualify under the ToR scheme.
  • Keep Detailed Records: Retain copies of all correspondence with HMRC, including your ToR approval, refund application, and any responses from HMRC. This will help if there are any follow-up queries or disputes.

If your goods arrive in the UK before ToR relief is granted, it can feel overwhelming to pay import duty and VAT upfront. However, by following the steps outlined above, you can successfully claim a refund from HMRC once your ToR approval comes through. Ensuring you have all the necessary documentation and submitting your claim in a timely manner is key to a smooth and successful refund process.

 

For more detailed guidance or assistance with your ToR relief claim, don't hesitate to reach out to Bright Customs. Our experienced team is ready to help you navigate the process smoothly and ensure you get the duty and VAT relief you're entitled to.

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