Right first time Mike. I pay duty AND VAT up front and if I complete the repair within 60 days I claim the VAT and duty back. But, alas, not the Post Office collection fee. But here's the rub. While it's easy to pay money to the Government, it is a LOT more difficult in time and paperwork to get it back. As for the hoops you have to jump through............. Look, don't even go there!
F-10, consider yourself let off lightly. Anything that the Customs and Excise consider under declared or wrongly so can create all sorts of problems. They are VERY powerful people, believe me. But if you are up front with them, explain it all clearly, even overrun the 60 day limit for re-export by a week or so, as I have when having parts made, then they are as good as gold.......