01/07/2026
For the most part, this government's tax policies have been damaging to small businesses and to our economy overall. One c***k of good news for small traders, however, is the proposed removal of relief for Low Value Imports.
This is a tax loophole that means overseas suppliers (think Temu, Wish, Shein etc) don't have to charge you VAT on any items less than £135. Which is most of what they sell. So, no VAT, no Corporation Tax, no employment taxes - nothing paid to the UK treasury.
But a small family-owned business in the UK selling the same goods must register for VAT as soon as they hit the threshold, and all of a sudden they're paying over a chunk of their sales price to HMRC, plus all the other taxes they pay, whilst trying to compete with foreign companies on an uneven playing field.
Overall, it sounds like good news. HOWEVER the timetable for implementation is still not until October 2028, so whether it will ever come to light remains to be seen.
High street businesses are set to benefit from action to level the playing field as the government sets out tax and customs reforms.