UK customs duties jump 64% in a year to record £4.5bn

The rise comes as post-Brexit increases in customs duties begin to bite for UK businesses and consumers.

The figures show that the last five months to 31 January 2022 are the five highest individual months on record for customs duties paid, with over £2.1 billion paid in that period alone according to accounting firm UHY.

“This is likely to be driven by businesses who may have struggled to pay customs duties earlier in 2021 and were able to defer paying until recent months,” UHY senior manager, Manchester, Michelle Dale said.

Post-Brexit “Rules of Origin” requirements mean anything sold in the UK by EU businesses must wholly or largely originate in the EU to be exempt from customs duties when it enters the UK.

The figures could jump higher as the “Rules of Origin” requirements become even stricter. From 1 January, the government introduced a requirement that importers must show a declaration about the origin of the goods at the point of entry. If a business cannot prove the origin, they may be liable to pay the full rate of customs duty and could face penalties.