A HOST of fashion labels have changed their returns policy so customers subscribing to their premium service must pay for returns.

Debenhams, Dorothy Perkins, Oasis, Coast and Warehouse – which are all part of the same group and share the same “Unlimited” delivery service – used to offer members free returns, but since June charge £1.99 per order.

1

Unlimited membership, which costs £14.99 a year, gives customers access to next day deliveries for all the brands named above, plus Burton, Misspap and Wallis .

The change has outraged subscribers, who were taken by surprise when they found out about the fee.

One shopper who took to the Trustpilot site to comment on Dorothy Perkins’ service said: “Since when have you started charging Delivery Pass customers £1.99 to return items?

“If you have started to charge for returns then I certainly will not be renewing my pass with you.”

Another added: “Regular customer for many years now and on unlimited subscription.

“Had to return a size 12 dress more like a size 18 only to be told 1.99 for returns label. 

“Will not be buying again, waste of money.”

Another Warehouse Unlimited customer complained of being charged £1.99, even though this fee was not in place when he had subscribed.

Karen Millen – another brand owned by the Boohoo Group – has similarly changed its Premier service so that members, who pay £14.99 a year, must pay £2 per return.

However, according to the terms and conditions, those who purchased Premier unlimited delivery before June 3 will continue to receive free returns until their subscriptions end. 

Any new Premier customers from June 3 will be charged £2 for returns.

But, for subscribers to Debenhams Unlimited and all of the brands under that label, the fee has come into effect immediately.

Sun Online revealed in September how members of Boohoo Premier – another premium delivery service operated by the Boohoo Group – were also told to pay £1.99 per return, but it has since reneged and made them free again.

Louise Deglise-Favre, retail analyst at GlobalData, said the introduction of returns fees was likely done to boost its profits, leaving some feeling cheated.

She added: “The group has been experiencing major issues in the past couple of years, unable to compete with new competitors such as Shein in terms of agility and breadth of choice.

“Besides, the group bought the majority of the brands mentioned here during the height of its success throughout the pandemic.

“However, these brands were already experiencing difficulties and the boohoo Group likely has not been able to turn their favours around despite a change in branding and product offering.”

The Boohoo Group did not comment.

STORE RETURN CHARGES

PrettyLittleThing recently implemented a charge of £1.99 per item returned.

In February, River Island angered customers by introducing a £2 charge to return items ordered online.

The retailer also said it would ban some customer accounts if they made too many returns.

The charge is deducted from the total amount refunded after the customer has posted back the items.

And H&M brought in a £1.99 fee in September last year.

Before that Boohoo also began the practise in July 2022, but it continues to offer free returns for its “premier” customers.

In May 2022, fashion chain Zara introduced a fee for those looking to bring back parcels, it now charges £1.95 for the service.

Next gives customers 14 days to return their orders, but still charges £2.50 to take them back.

A host of retailers including Mountain Warehouse, THG and Moss Bros have also added a charge for shoppers to return items bought online.

Companies have started to charge for returns as the costs of shipping have risen.

The cost of processing is also higher.

Retailers with stores can make it easier for consumers to return goods for free as they can be dropped off in a store, which saves the shipping charges.

UK business owners have fast-tracked their exit plans over the past 12 months, according to new research from Evelyn Partners.

Nearly one in three (29%) have accelerated business exits in the past year, amid rumours CGT rates could take centre stage in the upcoming Budget.

This is an uplift on the 23% who said 18 months ago that they had brought forward business exits over the previous year.

The research found nearly a quarter (23%) of the 500 business owners with turnovers of upwards of £5m surveyed by Evelyn Partners who had fast-tracked their exits in the last year had done so because of worries about an increase in CGT.

In addition, 20% brought forward business exits over the past 12 months because of fears of potential cuts in IHT reliefs.

The government has ruled out increasing the main rate of corporation tax above 25% and has pledged to freeze headline rates of VAT, income tax and National Insurance in the Budget.

However, the Treasury has remained tight-lipped on the outlook for CGT rates and IHT reliefs, as well as the tax rules around workplace pensions.

Other factors are also at play, with 25% of business owners who had fast-tracked business exits saying they had done so because of personal finance challenges resulting in a need to access the capital tied up in their business.

In addition, 24% brought forward plans due to increased costs of accessing capital as a result of rising interest rates.

Laura Hayward, tax partner at Evelyn Partners, said: “As the countdown to the Budget on 30 October ticks away, we have been contacted by an increasing number of business owners worried about what the chancellor will do to CGT and IHT.

“The prime minister’s statement that the upcoming Budget would be ‘painful’ has put owner-managed businesses on edge and this has prompted many to want to exit as quickly as possible.

“The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost-of-living pressures and high inflation.

“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.

Of those owners who are currently working towards a business exit, family succession (22%) is the most popular strategy followed by establishing an employee ownership trust (16%).

Hayward added: “Whatever strategy is used, exiting a business is a really big decision for business owners and it’s important that they put in place a plan that is appropriate for them and their business.

They need to carefully consider a range of factors, with possible changes to the tax regime being just one aspect.

“Holistic advice considering both the business and personal implications of a sale will help make the exit – which can be fast-tracked if need be – as successful as possible.”

THOUSANDS of taxpayers have been warned not to miss a fast-approaching HMRC deadline or they could face fines of £100.

There are just three weeks left to submit a paper self-assessment tax return with the final cut-off point on October 31.

1

The assessment is used by the government body to collect income tax.

This tax is usually deducted automatically from people’s wages, pensions and savings.

However, people and businesses with extra income must report it in a tax return.

Many people choose to complete this process online through the HMRC website as the online deadline is not until January 31, 2025.

But if you want to submit your tax return via the post you must complete it by October 31.

In some instances submitting a physical tax return is your only option, especially if you need to fill in the foreign income and gains, or the trust and estate pages.

This is because these forms are not available online.

If you sell clothes or other items on websites such as eBay or Vinted you might want to make note of the date.

That is because since the beginning of 2024, firms like Vinted have to pass on customer data to HMRC if a user sells 30 or more items, or earns over £1,700, in a year.

While the reporting rules have changed, this is not a new tax.

Those who earn more than £1,000 outside their regular employment were already required to file a Self Assessment tax form with HMRC.

It is worth bearing in mind that HMRC will fine you for failing to file your return by the deadline.

Then, a £10 daily fine applies every day you don’t submit your tax return.

Alastair Douglas, chief executive of TotallyMoney said it is important people do not get “caught out”.

The financial professional said people struggling with learning difficulties such as autism or dyslexia should contact HMRC’s extra support team for assistance. 

He explained: “They’re specially trained, and can guide you through the process with a video appointment or phone call — you’ll just need to mention your situation when contacting the HMRC helpline or webchat.”

Do I have to pay tax on my second-hand sales?

Sellers on apps such as eBay and Vinted my be required to pay tax.

If you have made 30 sales or £1,700 this year you will be contacted by Vinted and asked to submit the seller report form on the app.

This year, the company said it will only approach new sellers who registered in 2024.

If you do not hear from Vinted then you don’t need to do anything, though you may need to file a tax return for other reasons separately.

Users who meet the criteria will be asked to add their National Insurance Number to a pre-filled form and check the details are correct before submitting it.

This will be done on the Vinted app.

You don’t need to calculate or count anything yourself.

A Vinted spokesperson said: “Reporting members’ details to the authorities does not necessarily lead to taxation.

“Taxation is a separate matter that doesn’t depend on HMRC reporting.”

They added: “HMRC requires Vinted to collect information from members who meet the criteria mentioned above, regardless of whether or not their earnings are taxable.”

Vinted said that it will be getting in contact with users who need to fill out these forms towards the end of the year.

What that means in practice is that money you make may be reported to the taxman if it’s over the amounts above.

Whether or not you have to pay tax will depend on your wider circumstances.

The majority of people pay income tax automatically through employment via what’s known as PAYE.

UK business owners have fast-tracked their exit plans over the past 12 months, according to new research from Evelyn Partners.

Nearly one in three (29%) have accelerated business exits in the past year, ahead of amid rumours CGT rates could take centre stage in the upcoming Budget.

This is an uplift on the 23% who said 18 months ago that they had brought forward business exits over the previous year.

The research found nearly a third (23%) of the 500 business owners with turnovers of upwards of £5m surveyed by Evelyn Partners who had fast-tracked their exits in the last year had done so because of worries about an increase in CGT.

In addition, 20% brought forward business exits over the past 12 months because of fears of potential cuts in IHT reliefs.

The government has ruled out increasing the main rate of corporation tax above 25% and has pledged to freeze headline rates of VAT, income tax and National Insurance in the Budget.

However, the Treasury has remained tight-lipped on the outlook for CGT rates and IHT reliefs, as well as the tax rules around workplace pensions.

Other factors are also at play, with 25% of business owners who had fast-tracked business exits saying they had done so because of personal finance challenges resulting in a need to access the capital tied up in their business.

In addition, 24% brought forward plans due to increased costs of accessing capital as a result of rising interest rates.

Laura Hayward, tax partner at Evelyn Partners, said: “As the countdown to the Budget on 30 October ticks away, we have been contacted by an increasing number of business owners worried about what the chancellor will do to CGT and IHT.

“The prime minister’s statement that the upcoming Budget would be ‘painful’ has put owner-managed businesses on edge and this has prompted many to want to exit as quickly as possible.

“The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost-of-living pressures and high inflation.

“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.

Of those owners who are currently working towards a business exit, family succession (22%) is the most popular strategy followed by establishing an employee ownership trust (16%).

Hayward added: “Whatever strategy is used, exiting a business is a really big decision for business owners and it’s important that they put in place a plan that is appropriate for them and their business.

They need to carefully consider a range of factors, with possible changes to the tax regime being just one aspect.

“Holistic advice considering both the business and personal implications of a sale will help make the exit – which can be fast-tracked if need be – as successful as possible.”

MILLIONS of households are falling foul of a home insurance mistake that could end up costing them thousands of pounds, new research for The Sun has found.

Undervaluing all of the contents in your home can see you having to fork out over the odds if something gets stolen or damaged – while overvaluing it could void your insurance policy altogether.

1

And recent research from GoCompare, provided exclusively to The Sun, has revealed that an estimated 5.6million households are making the mistake of misjudging the value of their items.

We exclusively revealed earlier this year that a surge in the price of gold has potentially left thousands of households underinsured on their contents policies.

Add to that undervalued furniture, clothes and electronics, and you could end up having to fork out even more from your own pocket, despite thinking you were covered.

Nathan Blackler, home insurance expert at GoCompare, said: “If you underestimate the cost of replacing your possessions, you could find that in a worst-case scenario, you make a claim and don’t receive enough to replace or repair everything you need to.

“Worryingly, our research shows that more than 5.6 million households in the UK are underinsured – and a staggering 9.3 million households don’t have contents insurance at all.”

Of course, accurately measuring the value of your contents means you could end up paying out more for a policy if it turns out it’s worth more than you thought.

But, the average cost of a contents-only policy in the second quarter of this year was only £137, according to the Association of British Insurers, so any increases will likely be much lower than the cost of being underinsured.

Despite this, GoCompare said a staggering amount of households don’t know how to accurately calculate the value of their possessions.

In a YouGov survey of 2,000 adults carried out in October 2023, only 24% of respondents said they could accurately calculate how much their contents were worth.

That means over three quarters – 75% – could not accurately measure how much their possessions cost, leaving them at risk of losing out if they come to make an insurance claim.

But it’s not just underestimating the value of your items that could end up costing you.

If you overestimate the worth of your contents, you could end up paying more for the premiums than you actually need.

And inflating the cost of your items could also invalidate your policy if your insurer decides you exaggerated, leaving you with no cover at all – and potentially a huge bill.

How to calculate the value of your contents accurately

Knowing how to accurately value your possessions can seem daunting, especially if you’ve got a treasure trove of goods inside your home.

But there are some ways to ensure you are doing the best job possible, GoCompare said.

Save receipts for any high-value items

Saving receipts when you’ve bought a high-value item isn’t just helpful if you’re looking for a refund.

Knowing how much that Panasonic TV or Dreams bed cost will help ensure your contents policy is up to date and accurate.

GoCompare also said it will help you avoid exceeding the single article limit on your policy too.

This is the maximum amount an insurer will pay out for an individual item when you make a claim.

But undervalue one particular item and it could mean you have to fork out for anything over that limit.

Whenever buying anything new that’s of worth, make sure you add it to your contents insurance policy too, so everything is up to date and accurate.

Walk through your home

It might seem obvious, but walking through the entirety of your home will help flag items you might not otherwise have thought of including in your policy.

Make sure to include anything that might be stowed away in lofts or basements too, like carpets, curtains and garden furniture.

Once you’ve compiled a list of everything, try your best to estimate their value by researching similar items online.

Pay particular attention to antiques and valuable

You might not want to estimate the value of any antiques and highly-prized valuables like jewellery though.

In this instance, getting a valuation from an expert is advisable, GoCompare said.

This is also another good way to check nothing exceeds the single article limit.

You can get an antiques dealer to do this for you, or you could try one of the major auction houses like Sotheby’s or Bonhams.

Use a contents insurance calculator

Price comparison sites like Confused.com and GoCompare have contents insurance calculators you can use to get an estimation on what your possessions are worth.

Meanwhile, a number of insurers have their own calculators, including Admiral, Direct Line while John Lewis also has one.

In any case, when it comes to contents insurance, always use a price comparison site to find out the best deal to suit your needs.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories