The £135 Threshold — Reform by 2028: 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 (originally by March 2029 at the latest), and in its consultation response of 13 July 2026 it brought the deadline forward to October 2028 at the latest. 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 October 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.

Enlarge

What the UK government has announced — facts and caveats

Note: the changes described here are government decisions announced after the consultation. The implementing legislation is not yet in force.

In the Autumn Budget 2025 (26 November 2025), the government announced it would remove the customs relief for low-value imports from March 2029 at the latest. HMRC and HM Treasury ran a public consultation (until 6 March 2026). In its consultation response published on 13 July 2026, the government accelerated delivery by six months — to October 2028 at the latest — and confirmed that sellers and online marketplaces will pay customs duty quarterly.

On the EU side, the EUR 150 parcel exemption was abolished from 1 July 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, shipments worth up to £135 will be subject to duty under the new arrangements. Goods that are subject to excise duty, import restrictions, trade defence measures or non-ad valorem tariff rates remain excluded and are cleared under the standard arrangements. The government has also announced an additional fee in relation to low-value imports (details are not yet known). 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 quarterly (confirmed in the consultation response, with the option to align with VAT return cycles). Technical details are still to be published.

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); see our guide to HS codes.
2. Check your UK VAT registration — if you sell into the UK, you probably already need a number today.
3. Monitor the legislation — the government confirmed the removal (consultation response, gov.uk, 13 July 2026); watch for the legislation and HMRC guidance.
4. Contact a customs agency — review your logistics model (get in touch).
5. Review your platform agreements (see also: e-commerce rules and regulations) — Amazon, eBay and Shopify will roll out their own duty-collection mechanisms.

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. Our scope and how we quote are described on how much UK customs clearance costs.

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

Frequently asked questions