Tomorrow is a dark day for small businesses in the UK

[lostmybuttons]

I run a small business, mostly selling on Etsy. But as of tomorrow, Friday 13th December the introduction of the new GPSR legislation is creating such a huge headache for businesses like mine.

We can no longer sell to the EU or Northern Ireland, without paying for an appointed representative to ensure our products are safe. The cost for this is completely unachievable for most businesses like mine. Obviously, we all want our products to be as safe as possible but is it right that it'll cost me at least £2,000 a year to tell me my paper stationery is safe!!

Our only choice is to stop selling to the EU and Northern Ireland, which is a huge loss in income for those already struggling.

We feel like we are shouting into the void and absolutely no one is listening.

This is compounded by the fact that Etsy refuse to separate Northern Ireland in our shipping settings, so by default we are all breaking the legislation and risking fine of up to £20,000.

All Etsy have advised is to cancel any NI orders, which frankly is terrible customer service.

If there was ever a time to shop independent, your small business friends need you now.

To clarify absolutely, all voices are listened to during a CFI. To say otherwise is disingenuous and shows a lack of understanding of the FTA process.

Quickish edit: The EU does similar things for their own policy processes. Everyone impacted has the chance to feed in, I just guess most people don’t know or care.

If we want to do business we have to comply with the laws as they stand, that is it., that is all I am saying.

Doesn't matter why it is, it just is.

Depends what you mean by listened to. I agree that their submissions will be read. They are not taken into account equally and it's disingenuous to suggest that they are.

When I say they are listened to, I mean they are listened to. You should see evidence of such in the public bundles of each trade negotiation (as part of the mandate process for negotiations).

People cannot continue to complain about Brexit and the future trade deals this country negotiates when they’ve had every opportunity to feed into the process.

I'm a bit baffled as to why we can't continue to complain about brexit. It's an ongoing fuck-up of monumental proportions, possibly the greatest act of self harm voluntarily committed by a nation in modern history. It doesn't really matter by what procedures things have been agreed or negotiated. Those who can see that it's a disaster are entitled to say so.

I don't dispute you'll see them in bundles. I equally don't believe many individual Etsy sellers are able to have multiple meetings with the trade negotiators to make their cases!

Although to be open, my experience in trade deals negotiation specifically is clearly more limited than yours (genuinely!) and so maybe I am assuming my experience of EU policy and UK legislation consultation processes can be carried over to trade deals when it's not that case.

Let's agree to disagree!

You can keep complaining, it's just that it doesn't help - it won't change anything. All people who are impacted can do is try to work with the processes we now have.

It was a complete fuck up but we live in a democracy and our democratically elected government decided to put this question to the British population. That population chose overall that positive of no longer being part of the EU outweighed the negative impact on the British economy. We can try and say they didn't know, or thought it was scaremongering, but the Remain party had the opportunity to explain all of this, and the majority still voted (twice) that they'd take this hit.

You should be a registered business as a sole trader if your turnover is more than 1k per tax year. From January, etsy and all the other selling platforms will have to furnish hmrc with the names, address and total sales of everyone who sells through them

And what will this mean for me? I have to be honest, I have absolutely no understanding of what any of this means. I know Etsy asked for my NI number a few months ago which i gave them, but I thought it was for tax purposes and wasn't bothered as I don't earn anything else. But if I have to register as a business, I might just give up as it sounds like I will be out of my depth.

They're stomping on hobby business, while the big boys laugh. It's an upside down world.

That said, I also agree we can't fix Brexit - the UK population voted twice and they wanted it. It's not like no one was explaining that this was the type of thing (including the issue Ireland /NI and not being able to have a hard border) that would happen if we left the EU. The population made their choice.

They voted once to leave Europe and then the second time was for Boris the clown. How it's all worked out so far we are the joke of Europe. The population choose self harm and because of stupid pride and not wanting to look stupid they rather carry on and pretend it didn't happen.

This is annoying, 17.2m people voted to leave, that leaves 52m other people.

Many of whom are now very impacted but never got a say...

You can keep complaining, it's just that it doesn't help - it won't change anything.

It clearly can change things. (Certainly sitting mutely by and "making the best of it" will not bring any change.)

Think the voting turnout was 72%
The majority was only just over 51% of votes
The voting population was smaller than the current total voting population ( it wouldn’t be another 52 million )
Its a small detail I know as 51% is nothing for such a major change with over 16million voting to remain
and 18% chosing to not vote at all.

It’s not a big deal. It means you pay self-assessment tax every year with NI contributions. I’ve been doing it for years and it’s dead simple.

This is a cut & paste guide with info:

In the UK, being a registered business as a sole trader means that you operate your business as an individual, but you are self-employed and responsible for all aspects of the business.

Key Features of a Sole Trader Business
1. You and the Business Are Legally the Same:
• As a sole trader, there is no legal distinction between you and your business. This means:
• You keep all the profits after tax.
• You are personally responsible for any business debts.
2. Registration with HMRC:
• To become a sole trader, you must register with HM Revenue & Customs (HMRC) for Self Assessment to report your income and pay tax.
• You will need to:
• Submit an annual Self Assessment tax return.
• Pay Income Tax and National Insurance contributions (Class 2 and Class 4, if applicable).
3. Record Keeping:
• You are required to keep accurate records of your business income and expenses for tax purposes.
4. Trading Name:
• You can trade under your own name or choose a business name, but it cannot:
• Contain “Limited,” “Ltd,” or any misleading terms suggesting it’s a corporation.
• Be too similar to another registered trademark or business name.
5. Business Accounts:
• While not mandatory, it’s a good idea to have a separate business bank account to manage your finances.
6. Liability:
• You are personally liable for any debts or losses incurred by your business. Creditors can claim your personal assets if your business cannot pay its debts.

Advantages of Being a Sole Trader
• Simple Setup: Easy to start and run compared to other business structures, such as limited companies.
• Full Control: You make all decisions and keep all profits (after tax).
• Less Paperwork: Fewer administrative requirements than a limited company.

Disadvantages of Being a Sole Trader
• Unlimited Liability: You are personally responsible for any business debts.
• Taxation: Sole traders pay Income Tax on profits, which may result in higher tax rates compared to a limited company structure in some cases.
• Perception: Some clients or customers may prefer working with a limited company for credibility or security reasons.

When to Register as a Sole Trader

You must register with HMRC as a sole trader if:
• You’ve earned more than £1,000 from self-employment in a tax year.
• You want to claim tax-free allowances on your earnings.
• You need to prove self-employment for loans, mortgages, or benefits.

How to Register as a Sole Trader
1. Go to the HMRC website.
2. Create a Government Gateway account (if you don’t already have one).
3. Complete the registration form for Self Assessment and National Insurance.
4. HMRC will send you a Unique Taxpayer Reference (UTR) number to use in your tax returns.

Key Obligations Once Registered
• File a Self Assessment tax return annually.
• Pay Income Tax and National Insurance.
• Keep records of all income and expenses for at least 5 years after the tax return deadline.

Sites such as Etsy should be helping here. They're bigger than the sole trader and can surely help with guidance and what's needed

I also feel surprised this is just being looked at on the day it comes in

I suppose manufacturers have sorted stuff

Where did I suggest sitting mutely by? I said use the process available to you to try to change what you can change.

Complain as well if you want, but unless you do something it's not achieving anything.

To think this burden will rest on the shoulders of the young. God help us I hope they pull their woke fingers from their bottom and sort this mess out.

The legislation was finalized by the EU in 2023.

Clearly, neither government nor opposition had their eye on the ball during the legislative process.

Athough the UK is no longer part of the EU, NI is for trade purposes, and it was obvious for years that the effects of this EU rule would be felt in the rest of the UK. I say it was obvious, but that's perhaps hoping for too much.

I think you've been shafted by your government(s).

The specifics around this are about more than "UK"

Strictly speaking the market the OP is referring to is Great Britain (England , Scotland and wales). Northern Ireland by virtue of brexit rules has a different system which means EU rules must be met there. So yes it's part of UK but has different rules to GB. Hence the OPs problem.

This.

In the wake of Brexit, everyone in the UK selling anything abroad or to NI should have been (and should be) keeping an eye out for developments in the EU.

However, it's also the job of elected representatives and to some extent the press to keep the public appraised of trade issues, and it's the job of elected representatives to keep pressure on the government to do its utmost for the people of the UK. Even outside of the EU, approaches should have been made.

Clearly neither government nor opposition had their eye on the ball during the legislative process.

Athough the UK is no longer part of the EU, NI is for trade purposes, and it was obvious for years that the effects of this EU rule would be felt in the rest of the UK.

But what would the UK government have done? This is EU legislation for the benefit of EU citizens. The UK no longer has any say over it. We just have to accept it for better or worse.

TBF the UK has been a basket case for several years now with so much going on the populace must be dizzy so this was probably not even the 100th thing on most peoples minds.

That there is confusion is nothing unusual it's pretty much SSDD

Why should they help you? you re the problem (not you specifically but the older generation) all you do is call them names... that you don't even understand the meaning of.

My DD is early 20s band 6 NHS, looking after people with strokes and other brain injuries, i'm sure she'll love being called "Woke" .....