UK Ecommerce Logistics Operators Face Challenges With New Tax Regulations

It is critical for businesses to work with logistics systems specialist that boasts of excellently managed transport logistics. State-of-the-art fleet of air ride, tail lift boxed vehicles that range from vans to 32T vehicles with internal lock and load systems are specifically used for high-value products. The vehicles are tracked using GPS technology and monitored through a central control tower to ensure visibility of product movement.

UK ecommerce logistics operators can expect a wave of new regulations as tax authorities make the effort to claim back billion-worth of unpaid duties. According to Howard Catherall, transport and logistics law specialist, the UK logistics industry must be aware that companies involved in the distribution of ecommerce goods will be subjected to a new Fulfilment House Due Diligence Scheme that Her Majesty’s Revenue & Customs (HRMC) is planning to put into a law next year.

The law will place a heavy administrative burden with new obligations for companies or individual storing goods that are being imported from outside the European Union and offered online. The completely new system of regulations must not be ignored by operators because there is no room to manoeuvre with deadlines set and requirements clear.

According to HRMC, there is a systematic under-declaration of value as well as incorrect declarations of goods without payment of VAT after an online transaction. The new scheme which is expected to be implemented by next April is designed for the collection of up to £1.5 billion unpaid Vat and custom duties that have not been collected because fulfilment houses were being used by unscrupulous traders that are based outside EU.

Ecommerce fulfilment firms with active operations are required to register with HRMC by the end of June this year; otherwise, they will be facing £500 fine for every month of late registration. Fulfilment operators will be required to know the details of their customers whether they are paying VAT and custom obligations.

The reasons behind the success of logistics systems specialist aside from its well-managed transport logistics include training for all drivers and crew members as well as logistical employees to achieve the highest industry standards. As a result, on-time delivery percentage is 99% for all the specialist transport services.