The £135 Threshold — Reform by 2029: What Awaits E-commerce Exporting to the UK

In autumn 2025, the UK government announced it would remove the customs relief for shipments worth up to £135 imported into the UK — from March 2029 at the earliest. The change will affect every online seller from Poland and Europe shipping goods to UK customers. If your e-commerce business serves the UK market, it's time to understand what's coming.

How the current system works (as of May 2026)

Since 1 January 2021, imports into the UK have been subject to two regimes depending on value:

• Shipments up to £135 (inclusive): UK VAT is charged at the point of sale. The overseas seller (or marketplace) registers with HMRC and pays over the VAT. Duty is not charged — and it's this relief the government is targeting.
• Shipments over £135: standard clearance with full duty and import VAT (CDS, EORI GB).

Key point: £135 is the value of the whole shipment. LVCR (the VAT relief below £15) was abolished in 2021. The current customs relief for shipments of £135 or less applies only to duty, not VAT.

What the UK government has announced — facts and caveats

Note: the changes described here are at the announcement/consultation stage. They are not yet law.

In the Autumn Budget 2025 (26 November 2025), the government announced it would remove the customs relief for low-value imports — by March 2029 at the latest. HMRC and HM Treasury launched a public consultation, which ran until 6 March 2026.

Why is the UK government removing the relief?

1. Growth in the volume of low-value import (LVI) shipments — the Treasury is losing customs revenue.
2. Unequal competition — UK retailers pay duty, while overseas online sellers don't.
3. Control gaps — item-level data is meant to make it easier to tackle undervaluation.

What will change for Polish e-commerce

Once the reform takes effect, every shipment to the UK — regardless of value — will be subject to duty. Sellers and marketplaces will be required to:

1. Collect and pay over duty

A model similar to the current VAT one: the seller/marketplace collects the duty and pays it over to HMRC (likely quarterly). Details have not been announced.

2. Report item-level data

A requirement for information on every item in a shipment — meaning sales systems will need to be integrated with HMRC's requirements.

3. Verify classification (CN/HS codes)

Duty is calculated from the tariff code. Incorrect classification means a risk of extra charges and penalties.

4. Adapt IT systems and checkout

Real-time duty calculation (DDP) is becoming standard practice for platforms that care about cost transparency.

Comparison: current vs planned

How to prepare — a checklist

1. Audit your tariff classifications — correct CN codes (UK Global Tariff, HS 2022 database).
2. Check your UK VAT registration — if you sell into the UK, you probably already need a number today.
3. Monitor the consultation — the results from March 2026 have not been published; keep an eye on gov.uk.
4. Contact a customs agency — review your logistics model.
5. Review your platform agreements — Amazon, eBay and Shopify will roll out their own duty-collection mechanisms.

Frequently Asked Questions (FAQ)

Do I have to pay duty on shipments up to £135 straight away? No. This is an announcement/consultation — the date is March 2029 at the earliest. Until then, the current rules apply.

Will the £135 threshold itself change? The government hasn't announced a change to the threshold — the announcement concerns removing the customs relief, not the £135 value. Details may still change.

What is item-level data? Data on every product: description, tariff code, value, country of origin. The government has confirmed this requirement.

Will small businesses be exempt? The consultation asked about exceptions, but no exemption thresholds have been announced.

How we can help

Agencja Celna (agencjacelna.uk) — UK–Poland customs clearance. We help e-commerce businesses with: classification under the UK Global Tariff, UK VAT registration, the DDP/DAP model, and tracking legislative changes. Get in touch before the reform catches your business off guard.

Sources

• Reforming the customs treatment of low value imports into the UK — GOV.UK
• VAT and overseas goods sold directly to customers in the UK — GOV.UK