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Expandly Blog

UK Low Value Import Threshold Reform Confirmed: £135 Limit to Change from October 2028

HMRC’s July 2026 consultation response sets the policy direction, but the new threshold levels and charge structure have not yet been confirmed.

In This Article

01 What HMRC has confirmed
02 When the change takes effect
03 What is still undecided
04 Why the EU reform matters
05 How to plan UK logistics

Key Takeaways

► The £135 threshold stays in place until October 2028.
► New thresholds and charge structure are not yet set.
► The EU reform points to the same direction of travel.
► UK in-market warehousing insulates you from the 2028 change.

HMRC published its consultation response in July 2026 confirming that the UK's £135 duty-free import threshold will be reformed. Implementation is set for October 2028. The move follows the EU's abolition of its equivalent €150 de minimis threshold from 1 July 2026.

October 2028 When reform of the UK's £135 duty-free import threshold takes effect, confirmed in HMRC's consultation response of July 2026.

The consultation response sets the policy direction but does not specify the new threshold levels or charge structure. Those will be confirmed through subsequent regulatory process ahead of the 2028 implementation date. The reform is aligned with the international trend, with both the EU and the US revisiting de minimis import thresholds that were designed for a pre-ecommerce trade environment.

For brands currently shipping direct to consumers in Britain from outside the UK, no immediate action is required. The current £135 threshold remains in place until October 2028.

For brands planning UK market entry, the period before the reform takes effect is relevant to logistics decisions. A US brand that establishes UK in-market warehousing in 2026 or 2027 is setting up a distribution model that works regardless of how the threshold reform lands. A brand that relies on direct shipping into the UK after October 2028 may face a material change in import economics at the point when it has already scaled.

The EU customs reform, which introduces a €5 per parcel charge from November 2026, provides a practical preview of what UK threshold reform may look like in implementation terms.

Standing up UK in-market warehousing and the customs setup around it before October 2028 is the kind of sequencing Expandly builds into a UK entry plan.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled. We’ve supported 2,000+ brands make the move.

Find out more
  • VAT registration handled across UK, Germany, Netherlands and all EU markets
  • EU fulfilment from our Netherlands warehouse — fast access to the whole continent
  • IOSS registration and management for DTC shipments under €150
  • Real-time inventory and order management across all your active channels
  • Dedicated onboarding, compliance and success team alongside the platform
  • 17 years' experience, 2000+ brands expanded — Andy Hooper, Founder

The bigger picture

The de minimis reckoning in-market wins out

The UK joining the EU in reforming its de minimis import threshold reflects a coordinated international shift, because low-value import exemptions were designed for mail order and gifts rather than the volumes of platform-driven ecommerce now moving through them. For a brand selling into both the UK and the EU, that means the direct-shipping model is being repriced in two markets at once, on two separate timetables and under two separate customs regimes. Expandly's compliance-first onboarding starts with UK VAT and customs registration and an in-market stock position, then extends the same structure into EU VAT and fulfilment rather than running both as parcel flows from outside. Making that move ahead of October 2028 means the change arrives as a cost line already planned for, rather than a margin shock on a business that has since scaled.

  • The US is also reviewing its own de minimis threshold under political pressure, and the UK and EU reforms accelerate that international conversation
  • Brands that build in-market distribution early are not only optimising for current economics, they are positioning for a customs environment that is structurally less favourable to direct cross-border shipping across every key market
  • The period to October 2028 is a practical planning horizon for UK logistics setup rather than a reason to wait

UK Online Spending 2025

The UK is a large enough market to carry the cost of in-market warehousing on its own volumes. That matters more once direct parcel imports stop being the cheaper route.

£118.5bn

UK consumers spent £118.5 billion online in 2025, a 2.8% increase on 2024. Source: Ecommerce News UK

UK Mobile Commerce Share

Most UK peak-season spending now happens on a phone, where an unexpected duty charge at the door is the fastest way to lose a repeat customer. Duty-paid in-market despatch removes that moment entirely.

61.5%

UK online spending on mobile in November to December 2025. Source: Ecommerce News UK

UK-Ready from Day One

Post-Brexit, the UK runs its own VAT, EPR and product standards regime entirely separately from the EU. Expandly sets up UK compliance as a standalone or as part of a combined EU expansion.

2,000+

brands expanded with Expandly

If this sounds like your world,
let's talk.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled.

Self-Serve

  • £1,150/month
  • Platform-led with email support
  • Best for: $1M–$5M brands

Guided

  • £3,000/month
  • Dedicated Account Manager
  • Best for: $5M–$20M brands

VIP

  • £5,000/month
  • Dedicated VIP Consultant
  • Best for: $20M–$50M+ brands
See full pricing and what's included