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Tomorrow is a dark day for small businesses in the UK

422 replies

lostmybuttons · 12/12/2024 22:32

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.

OP posts:
Thread gallery
9
Zonder · 13/12/2024 07:43

leafybrew · 13/12/2024 07:25

And the UK is not suffering at the hands of the EU. Our suffering is entirely of our own making. People were warned of the risks and they dismissed them as Project Fear.

<<<

This x1000

No one is gleeful Confused

This.

AgnesX · 13/12/2024 07:46

Mum2jenny · 12/12/2024 22:37

Just aim to sell in the UK then. 2k is a minimal cost if your business is any good

Since NI is part of the UK they shouldn't have to just sell on the UK mainland.

It's poor legislation and fallout from Brexit.

GuffyTheDustBuster · 13/12/2024 07:47

Not aware of this at all. Does the converse then apply that people in NI won't be able to buy goods from GB? That doesn't seem....right???

RadioBamboo · 13/12/2024 07:47

Brexit got the UK freedom from EU regulations at the cost of the freedom of UK citizens to live in, work in, travel to, and trade freely with 27 other countries.

Except the UK does not have freedom from EU regulations, as this thread clearly demonstrates. Businesses will still have to comply with EU regulations if they want to sell within the EU. Except now the UK has no seat at the table in shaping the regulations. And to sell to the EU or Northern Ireland, businesses must pay for an appointed representative within the EU to ensure their products are safe. Previously we were in the EU - no representatives necessary.

This is just the start. It will be an ongoing process as EU regulation moves on without us and we just have to follow with no say, or lose the right to trade with our largest partner. We have become rule takers.

RadioBamboo · 13/12/2024 07:52

GuffyTheDustBuster · 13/12/2024 07:47

Not aware of this at all. Does the converse then apply that people in NI won't be able to buy goods from GB? That doesn't seem....right???

That's not the converse - that's the same transaction. Goods coming into the single market (including NI) from any non-single market country (including GB) will need to prove compliance via a representative.

People in NI can still buy goods from non-SM countries, but it will be a bit more complicated for the sellers, and some won't be able to make it profitable.

timenowplease · 13/12/2024 07:55

Plasmodesmata · 12/12/2024 23:17

Thanks for starting this thread OP, I'm in the same position. I really feel for people in NI as well, who are going to suddenly find that they are unable to buy from small businesses in the UK. I'd imagine that Temu, Shein, etc - who this legislation was presumably set up for - will just pay their way round it.
My shop on Etsy sells vintage items so I can't meet the requirements if I tried, as I'm supposed to include manufacturers information and in many cases I don't know who they were - or even if I did they are no longer trading, because well.... vintage.
Etsy are being completely crap about the whole situation - other online marketplaces e.g. Ebay have allowed sellers to opt out of NI selling - not ideal, but better than the Etsy choice which seems to be 1) take your chances breaking the law or 2) shut your shop.
I already didn't sell to the EU for the most part due to the packaging laws.
and it does seem to me that a lot of these new rules are set up to make money somewhere for someone - maybe if anyone lives in NI set up a business being a GPSR representative and just rake in a load of money!

Antiques and items made before 13 December seem to be exempt.

RadioBamboo · 13/12/2024 07:58

AgnesX · 13/12/2024 07:46

Since NI is part of the UK they shouldn't have to just sell on the UK mainland.

It's poor legislation and fallout from Brexit.

It's poor legislation

There's nothing wrong with the legislation. The problem is due to brexit alone. The legislation could not cure the problem we're discussing.

NI had to stay within the single market to prevent a hard border across the island of Ireland. There's a trade border now with GB which will become increasingly obvious as the EU moves on and regulations become increasingly different on either side of that border.

NoBinturongsHereMate · 13/12/2024 07:59

crummygecko · 13/12/2024 04:55

FYI whilst I agree it's unfair, it's not inexplicable that marketplaces like Etsy are refusing to separate NI. It's unlikely to be a small change from a technology perspective. They have had 2 (?) years to get this done, so not having it done isn't great but it's likely the impact wasn't picked up until late on or they've taken the view that most people will continue to sell to NI/ no one will be fining for small sellers for offering to NI and then cancelling (and they're willing to take the customer impact). I suspect they will eventually change and it might even already be in the works.

Note I don't work for Etsy so have no insider knowledge, just wanted to comment because I don't think it's inexplicable. OP is still (unfairly) screwed.

As they already allow geographical filtering, it should be a relatively trivial matter to add 1 more region.

NoBinturongsHereMate · 13/12/2024 08:01

GuffyTheDustBuster · 13/12/2024 07:47

Not aware of this at all. Does the converse then apply that people in NI won't be able to buy goods from GB? That doesn't seem....right???

The converse question would be whether people in NI can sell to GB. And to the EU.

RadioBamboo · 13/12/2024 08:10

MarkingBad · 13/12/2024 01:50

We always had to comply with UK and European regulations, since joining the common market. Member states kept some of their own regulations and took on the EUs too not just in business but in many other things too.

The Sale of Goods Act had exisited since the 1800s (in various forms until 2015) is an example of UK laws, when the EU set out it's Consumer Protection (Distance Selling) Regulations 2000 was an EU directive set out in UK law so any ecommerce operation had to comply with UK and EU laws.

I've been doing this since 1999, I've seen many changes to EU and UK laws for running a business. We still had to comply either way, just like we have to comply again now with this one.

Edited

But you seem to be missing the point. The UK is no longer in the single market. That completely alters the way in which these regulatory changes fall.

We have no say over them, no participation in the impact assessments or any or input into how they are drafted.

And now that we are on the wrong side of the regulatory border (where previously there was none - we were in the SM) it's not enough just to comply. We have to demonstrate compliance as goods cross the border. This thread is about each business needing a representative within the EU to vouch for it and be responsible. Within the EU that would not be necessary.

Plasmodesmata · 13/12/2024 08:13

lemmein · 13/12/2024 02:33

Do I have to cancel orders I already have for the EU & NI, or can I ship them as they were purchased prior to the deadline?

I've no idea how I missed this 🤦🏻‍♀️

You can ship them as they were ordered before the deadline. Probably (not an expert)

RadioBamboo · 13/12/2024 08:16

NoBinturongsHereMate · 13/12/2024 08:01

The converse question would be whether people in NI can sell to GB. And to the EU.

It's generally more complicated and has been since brexit because there is now a trade border down the Irish sea for goods moving in either direction. But the UK has been unable to actually fully enforce any of its post-brexit goods borders for goods entering without causing huge problems at Dover. And anyway the subject of this thread, the GPSR, is an EU regulation. It does not affect goods entering GB.

HappyTwo · 13/12/2024 08:17

so sorry also bumping for you

itswonkylampshade · 13/12/2024 08:17

Also a small business owner- my type of business has had to comply with similar since Brexit though. It’s not as drastic as people are imagining, and not as expensive as you think. Here’s a very useful post by a great business page I follow (she’s only paying £200 for RP services)…

www.instagram.com/share/BAMHEE32AP

Bunbry · 13/12/2024 08:23

SereneCapybara · 12/12/2024 22:44

Not necessarily. People could be crafters, selling what they personally make. Maybe earning £20k a year with low overheads andreduced hours to fit in with having children. That is a good, viable, tax paying business. But takig 2k from it would hit it hard.

@lostmybuttons On Etsy/Ebay can you just add a big sign saying due to new regulations this company is now no longer able to ship to NI or Europe.

Can a few of you band together as a co-operative of sellers and split the check cost between you?

Presumably the cost is tax deductable, so the government is the one really losing out as you'd just pay less tax due to rising overheads.

Why are the people in charge so useless at thinking plans through?

It's unfortunate that the phrase 'tax deductable' has entered the language.

The reality is that some costs can be 'deducted from income' in calculating tax owed - so to use some numbers in the thread, £20k of income, £12k cost of materials means tax on £8k of profit. £20k of income less £12k materials less £2k to comply means tax on £6k but £2k less cash in the business.

Big business gets 30 days credit from their staff, small business tends to have to pay everything much quicker. It's very hard, very precarious work.

Alexandra2001 · 13/12/2024 08:23

We voted for this, though we were misled and its not reasonable to expect the pop. to realise the implications of leaving the EU.

We now have a Govt that totally rules out joining the SM or CU, so the talk of closer cooperation is bollox and shows how little they understand the EU and tbh how false the calls to rejoin/new vote etc whilst in opposition.

Very disappointed.

Itsallfunngamesuntil · 13/12/2024 08:26

SavingTheBestTillLast · 13/12/2024 02:00

If you read the full thread you will see @Mum2jenny has already had some not very nice comments made about her inaccurate use of the term UK.

You are the third person ( at least ) just because she should have said GB doesn’t mean she doesn’t appreciate NI is part of the UK

Give her a break fgs , mistakes happen!

I honestly had no intention of upsetting mum2jenny and had no idea two others had already commented.......simply did not have enough time to read all the comments posted on a thread to check. So apologies it really was not meant to upset anyone.

However in a more general context it does get very tiresome when people in GB (I know people from other countries do it too) don't recognise the difference between UK and GB and how they're made up...either by general ignorance or simply a 'typo'

I was talking to someone in GB a few weeks ago through work ( am educated middle aged guy) and he said....oh yes you're an hour behind us.....lol. nope...we are all the same time zone lol

Sorry OP for the difficulties you are having....£2k for a small business is a massive amount of £

sashh · 13/12/2024 08:29

TheQuirkyMaker · 12/12/2024 23:02

Doesn't all this just mean that UK companies will sell in the UK- keeping all our businesses, employees and taxes here? That has to beneficial, surely?

Not when your customers are in the EU and NI. In fact it might make more sense for British companies to relocate to the EU taking employees and taxes with them.

OP

Could you start a 'go fund me'? Not just you but other small businesses?

Is there some place you could ship to? I'm thinking Gibraltar but I expect they will be having the same problem.

Apolloneuro · 13/12/2024 08:30

SavingTheBestTillLast · 13/12/2024 02:00

If you read the full thread you will see @Mum2jenny has already had some not very nice comments made about her inaccurate use of the term UK.

You are the third person ( at least ) just because she should have said GB doesn’t mean she doesn’t appreciate NI is part of the UK

Give her a break fgs , mistakes happen!

Thing is, that poster made the mistake when they were just trying to be mean, so karma…

JennyTals · 13/12/2024 08:30

is the 2k a one off cost or an annual thing ?

Istheworldmadorisitme · 13/12/2024 08:32

Alexandra2001 · 13/12/2024 08:23

We voted for this, though we were misled and its not reasonable to expect the pop. to realise the implications of leaving the EU.

We now have a Govt that totally rules out joining the SM or CU, so the talk of closer cooperation is bollox and shows how little they understand the EU and tbh how false the calls to rejoin/new vote etc whilst in opposition.

Very disappointed.

While I agree with the sentiment of your post I really get annoyed at the claim that people were mislead and couldn't be expected to understand the implications. If anyone had taken the time to think about it for 5 seconds then it would be pretty obvious that the UK would have to constantly adapt to the regulatory requirements of the EU with no say in the matter post Brexit. This is just a simple fact of international trade. People just seem to delight in shooting themselves in the foot and voting for something that doesn't benefit them at all. It's very depressing that there is no hope in sight and no consequences for the idiots who got us into this situation.

Moonlightstars · 13/12/2024 08:33

justasking111 · 12/12/2024 23:10

The EU really are beyond the pale. They've done trade deals with South America for meat and other foods. Breathtakingly arrogant.

Why are they "beyond the pale"?
The UK had a good working relationship with the EU. We destroyed that in an act of self sabotage (for the benefit of a few wealthy people).
Why would they not trade elsewhere?

Marblesbackagain · 13/12/2024 08:36

justasking111 · 12/12/2024 23:10

The EU really are beyond the pale. They've done trade deals with South America for meat and other foods. Breathtakingly arrogant.

So by us protecting our economy and ensuring high standards are maintained we are beyond the pael?

Sorry but this is what the UK wanted, this is what Brexit always was.

The arrogance of the UK wanting EU privileges whilst shouting we don't want to be part of it!

The south American deal is a jurisdictional agreement which sets out criteria to be met. The UK is more than welcome to meet the same criteria 🤷‍♀️

SereneCapybara · 13/12/2024 08:38

Bunbry · 13/12/2024 08:23

It's unfortunate that the phrase 'tax deductable' has entered the language.

The reality is that some costs can be 'deducted from income' in calculating tax owed - so to use some numbers in the thread, £20k of income, £12k cost of materials means tax on £8k of profit. £20k of income less £12k materials less £2k to comply means tax on £6k but £2k less cash in the business.

Big business gets 30 days credit from their staff, small business tends to have to pay everything much quicker. It's very hard, very precarious work.

You are right that it would be an upfront cost and that taking this amount out of a small business puts pressure on the business. The PP who assumed any successful business should easily manage to absorb it doesn't understand how very small but effective, viable and valuable businesses operate.

SereneCapybara · 13/12/2024 08:39

Marblesbackagain · 13/12/2024 08:36

So by us protecting our economy and ensuring high standards are maintained we are beyond the pael?

Sorry but this is what the UK wanted, this is what Brexit always was.

The arrogance of the UK wanting EU privileges whilst shouting we don't want to be part of it!

The south American deal is a jurisdictional agreement which sets out criteria to be met. The UK is more than welcome to meet the same criteria 🤷‍♀️

Exactly. How childish arrogant and ignorant was the government who thought we could withdraw from the EU then demand exactly what we needed and have it handed to us. That's the attitude of toddlers not functioning adults.

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