Ryman owner urges government to act as foreign retailers avoid customs bills
Ryman owner Theo Paphitis is taking his intention to disrupt the status quo by urging the government to plug tax loopholes which allow importers to avoid customs bills.
Theo, who recently set up an app-based print-on-demand greeting card service across his UK-wide chain of stationery shops, is calling for a clampdown on the loophole used by fast fashion giants such as Temu and Shein to ship orders individually from China rather than in bulk.
The system means they don’t pay tax on parcels valued at less than £135 under Britain’s de minimis rule, whereas they would have to on bulk shipments to fulfilment centres in the UK then distributing the orders from there.
Theo, who also owns hardware chain Robert Dyas and lingerie retailer Boux Avenue, told The Times on Sunday, 24 March, there is a “big slug” of companies exploiting the loophole, and added: “Worse than that, the companies benefiting from it are not British companies. The government is not plugging loopholes. It’s becoming absolutely clear that the emperor has no clothes on.”
Lord Wolfson of Aspley Guise, ceo of Next, has echoed the concerns, emphasising the need for a review of the methods used by overseas websites selling low-value products.
While companies like Temu and Shein defend their practices by citing supply chain efficiencies and operational proficiencies, Theo argues the UK retail sector requires more support from the government, particularly reforms to the business rates system, which many view as unfair and outdated.
He said the UK retail industry is being “taken for granted” and needs more support, and the government has acknowledged the importance of the sector, highlighting measures being taken to support businesses, including extending the reduction in business rates bills and reviewing the business rates system to make it more responsive and supportive of investment.
Business rates, a tax levied on non-domestic properties, disproportionately burden physical retail stores on the High Street, as they often have higher property values compared to online and out-of-town rivals.
Although the business rates relief system allows retailers to claim if the rateable value of the shop is less than £15,000 and you only have one store, any independent wanting to expand is then caught, so Theo has stressed the need to create a fair tax system that supports the retail industry without burdening it unnecessarily.
In February, Ryman launched its service offering personalised cards which customers can order online and collect within an hour from their nearest High Street outlet for just £2.99, with Theo publicising the move as a bid to “disrupt” the print-on-demand greeting card sector.
