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yasockie
11th January 2012, 10:16
RaspberyPI.com: We’ve started manufacture (http://www.raspberrypi.org/archives/509):


I’d like to draw attention to one cost in particular that really created problems for us in Britain. Simply put, if we build the Raspberry Pi in Britain, we have to pay a lot more tax. If a British company imports components, it has to pay tax on those (and most components are not made in the UK). If, however, a completed device is made abroad and imported into the UK – with all of those components soldered onto it – it does not attract any import duty at all. This means that it’s really, really tax inefficient for an electronics company to do its manufacturing in Britain, and it’s one of the reasons that so much of our manufacturing goes overseas. Right now, the way things stand means that a company doing its manufacturing abroad, depriving the UK economy, gets a tax break. It’s an absolutely mad way for the Inland Revenue to be running things, and it’s an issue we’ve taken up with the Department for Business, Innovation and Skills.

Spit your rage and flames ;)

Ignis Fatuus
11th January 2012, 10:37
RaspberyPI.com: We’ve started manufacture (http://www.raspberrypi.org/archives/509):



Spit your rage and flames ;)The purpose of import duties is not to penalise importers per se, but to encourage local manufacture by penalising the foreign manufacturers of the imports.

The answer is for someone in the UK to manufacture the components locally, having an advantage because imported components are liable to duty and theirs are not.

Sysman
11th January 2012, 10:42
The purpose of import duties is not to penalise importers per se, but to encourage local manufacture by penalising the foreign manufacturers of the imports.

The answer is for someone in the UK to manufacture the components locally, having an advantage because imported components are liable to duty and theirs are not.

We looked at this in the early nineties, and it was crazy because there is stuff you simply cannot make from scratch in the UK, has patents on it etc etc.

eek
11th January 2012, 10:47
We looked at this in the early nineties, and it was crazy because there is stuff you simply cannot make from scratch in the UK, has patents on it etc etc.

WSS. Given the cost required to build the factories required to manufacture this stuff we really need to change the rules.

Unfortunately the rules will be EU based rather than UK based but considering that its a proxy for Broadcom complaining someone may actually do something about it.

DodgyAgent
11th January 2012, 10:51
The purpose of import duties is not to penalise importers per se, but to encourage local manufacture by penalising the foreign manufacturers of the imports.

The answer is for someone in the UK to manufacture the components locally, having an advantage because imported components are liable to duty and theirs are not.

Why would they when they can be manufactured abroad so much more cheaply?

The Spartan
11th January 2012, 10:56
The majority of the goods we buy these days are manufactured abroad

DimPrawn
11th January 2012, 11:44
Why would they when they can be manufactured abroad so much more cheaply?

British jobs for British workers.

Didn't you listen to anything Brown has said?

:rolleyes:

DodgyAgent
11th January 2012, 11:46
British jobs for British workers.

Didn't you listen to anything Brown has said?

:rolleyes:

We agents are better at talking than listening :happy

The Spartan
11th January 2012, 11:51
We need to be more competitive or offer better incentives for those bringing jobs to Britain

Arturo Bassick
11th January 2012, 11:54
Maybe they should charge "import duty" on non EU workers, after all they are component parts or imported assets.

DodgyAgent
11th January 2012, 11:54
We need to be more competitive or offer better incentives for those bringing jobs to Britain

what does that mean?

Paddy
11th January 2012, 12:25
Maybe they should charge "import duty" on non EU workers, after all they are component parts or imported assets.

and "import duty" on offshore call centres.

The Spartan
11th January 2012, 12:26
It means that we're not currently attracting investment, as we're not cheap enough. I read that other countries are often put off by the fact that we don't offer good incentives to set up business here etc

DodgyAgent
11th January 2012, 13:15
and "import duty" on offshore call centres.

Oh dear - a control freak

DodgyAgent
11th January 2012, 13:17
It means that we're not currently attracting investment, as we're not cheap enough. I read that other countries are often put off by the fact that we don't offer good incentives to set up business here etc

So what does "attracting investment" mean? How?

Arturo Bassick
11th January 2012, 13:36
Oh dear - a control freakExplain why you think that is control freak?

I agree with him.

It seems wrong that UK companies have to compete against offshore service providers who are bound to be cheaper. UK industry can not hope to win.
Particularly when the consumer can not go offshore for the service provided.

Like it or not we have strict labour laws in the UK (and Europe) and it is incredible that large corporations can dodge these by simply using an off shore service.

NickFitz
11th January 2012, 14:11
Explain why you think that is control freak?

I agree with him.

It seems wrong that UK companies have to compete against offshore service providers who are bound to be cheaper. UK industry can not hope to win.
Particularly when the consumer can not go offshore for the service provided.

Like it or not we have strict labour laws in the UK (and Europe) and it is incredible that large corporations can dodge these by simply using an off shore service.

This isn't a case of "providing a service". It's about manufacturing - actually making stuff, real stuff you can hit with a hammer.

Creating the infrastructure for real industries like this is simply not going to happen in this day and age. Our manufacturing industries have been systematically destroyed by politicians, starting thirty years ago.

The best this country can manage nowadays is providing a few PR types to lie about how wonderful it is that this happened.

The Spartan
11th January 2012, 14:19
So what does "attracting investment" mean? How?

Making it easier to come here and setup for one,
Regulation, business taxation, personal taxation, and planning and infrastructure aren't the greatest and need to be looked at.

Take IR35 for example it's specifically aimed at IT contractor's rather than everyone, there are plenty of tradesmen out there that earn a fair few bucks but they don't seem to get targeted.

DimPrawn
11th January 2012, 14:42
Making it easier to come here and setup for one,
Regulation, business taxation, personal taxation, and planning and infrastructure aren't the greatest and need to be looked at.

Take IR35 for example it's specifically aimed at IT contractor's rather than everyone, there are plenty of tradesmen out there that earn a fair few bucks but they don't seem to get targeted.

A good example are DHL delivery drivers. They are all self employed, but have to drive their own van painted with DHL on it, wear a DHL uniform and only deliver parcels for DHL exactly where and when DHL tell them too. But they are not employers, oh good good no.

TestMangler
11th January 2012, 14:56
A good example are DHL delivery drivers. They are all self employed, but have to drive their own van painted with DHL on it, wear a DHL uniform and only deliver parcels for DHL exactly where and when DHL tell them too. But they are not employers, oh good good no.

Footballers also exempt from IR35. Would be nice if one refused to play at match time due to being 'unavailable' and refused to wear the same clobber as the other guys in the 'team'

DodgyAgent
11th January 2012, 15:08
Explain why you think that is control freak?

I agree with him.

It seems wrong that UK companies have to compete against offshore service providers who are bound to be cheaper. UK industry can not hope to win.
Particularly when the consumer can not go offshore for the service provided.

Like it or not we have strict labour laws in the UK (and Europe) and it is incredible that large corporations can dodge these by simply using an off shore service.

And how do you tax what is essentially a phone call from abroad? How exactly do you differentiate between a call from a call centre and your cousin in Madras?

Again its this entitlement thing where we decide to give fathers 6 months paternity leave and our employers are expected to swallow the cost. If the UK chooses to impose costly employment laws then the quid pro quo is that fewer people will be employed. We live in an International market where countries compete with each other to attract investment. Uk businesses are within their absolute right morally and legally to place their business where they like. If this means locating a call centre abroad then so be it.

We Europeans will soon realise that we are not entitled to have our cake and eat it.

SimonMac
11th January 2012, 15:11
Isn't this why people assemble things abroad, import to the UK and stick a badge on or something so they can say "Built in the UK"

DodgyAgent
11th January 2012, 15:11
This isn't a case of "providing a service". It's about manufacturing - actually making stuff, real stuff you can hit with a hammer.

Creating the infrastructure for real industries like this is simply not going to happen in this day and age. Our manufacturing industries have been systematically destroyed by politicians, starting thirty years ago.

The best this country can manage nowadays is providing a few PR types to lie about how wonderful it is that this happened.

So IT is a soft business then?

AtW
11th January 2012, 15:28
The answer is for someone in the UK to manufacture the components locally, having an advantage because imported components are liable to duty and theirs are not.

:laugh