Indigo lights

Sellers can get organised and pay the taxes up front, i do not mind paying the 20% VAT on what I buy, the issue comes when the £4 tax then incurs an £8 fee by the royal mail, this can be avoided if taxes are paid upfront. it is an option provided by some sellers..

Based in Australia... you had a Vat/handling charge (import/customs).

Which wouldn't be the fault of an overseas supplier??

Also you were refunded in part,  as per their blurb on the website

Time delay/response, sure I'd be miffed if it took that long, the other stuff is part and parcel of buying overseas products, especially if you're not prepared to pay the levy imposed by C&E.

That's unfortunate, but I'm not sure it was Indigo's fault.  I expect their refund terms are on their website.

The £12 fee would have been £4 tax and £8 handling fee from Royal Mail.  £14 with free shipping should be under the £15 VAT threshold which includes the postage cost, so either a mistake, a wrong declaration on value, or a change in the exchange rates (declaration probably in AUD) while in transit pushed it over.  Maybe Border Force did not realise postage was included in value and added it again for the total value.

HMRC do explain this: https://www.gov.uk/goods-sent-from-abroad/tax-and-duty.  You can apply for a refund if the fee was incorrect.  The Royal Mail fee refund is included if it is a mistake by Border Force.  

This is hindsight now but worth being aware of with all international orders, including eBay and Kickstarter etc.