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Why companies should not follow The Hut’s lead to claim LVCR by shipping through US

20 November 2012

Salman Shaheen - ITR

The Hut is the latest company to be exposed for dodging the UK’s low value consignment relief (LVCR) removal on Channel Islands mail order. But neither advisers nor campaigners see the merits in circular shipping via the US.

A report in the Guardian newspaper has revealed how online retailer The Hut is circumventing the UK's removal of LVCR from Channel Island mail order goods, by circular shipping via the US.

"Cheshire-based The Hut Group was one of the most active online businesses in a £500 million-plus trade in VAT-free goods shipped from the Channel Islands until April of this year," the Guardian reports.

The Guardian has uncovered evidence that The Hut, which owns the brand, closed its warehouse in Guernsey to shift some operations to a site outside Chicago.

"Since Osborne's crackdown, which came into...

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