In the Chancellor’s budget statement, she announced that the £135 de minimis that allows low value packages into the UK without paying customs duties and tax would be scrapped
This has long been a way for retailers outside the UK to take advantage by offering lower prices – decades ago, Play.com used a similar tactic by basing themselves in the Channel Islands to take advantage of the low-value consignment relief which was scrapped in April 2012.
Today the topic is high on the ecommerce agenda with the likes of Temu and Shein importing goods by the plane load, but the Chancellor has indicated the de minimis won’t disappear for another three years. James Rigg of Trojan says it should go sooner:
Scrapping the ‘de minimis’ loophole is absolutely the right call, and it should never have taken this long. For years now, overseas sellers have been able to ship low-value goods into the UK without paying the same taxes or meeting the same obligations that British retailers face every day. It’s created an entirely artificial price advantage for non-UK companies and left UK businesses trying to compete on an uneven playing field.
As a retail partner working with everyone from small family-run firms to major FMCG brands, we have seen just how damaging this has been in practice at Trojan. UK manufacturers and retailers are being undercut by imports that only appear ‘cheap’ because they’re not carrying the same VAT burden or compliance costs. It’s slowed growth, stifled investment and cost the UK jobs we urgently need to protect.
The big concern now is timing. Waiting until March 2029 leaves overseas sellers with what is effectively a 20% tax discount for another three years. That’s simply not sustainable for UK businesses trying to grow, hire and invest.
We’re urging the industry to come together. The consultation gives us a rare chance to speak with one voice and demand that these changes be brought in far sooner. We’ll be taking part, and I would urge every UK manufacturer, retailer and logistics partner to do the same. If we want a fair trading environment that genuinely supports our retail industry, our jobs and our economic growth, we need to make ourselves heard.
– James Rigg, CEO, Trojan
