UK warehouse tax warning: what should I do?
Ask the warehouse to identify the concern, affected stock and date it first found the problem. Send matched tax and shipment records, agree corrective action and obtain written confirmation of any unresolved issues. Coordinate factory-side documents with Cambridge China Bridge.
Establish what the notice means
Ask whether you received a routine notice explaining UK obligations or a warning about suspected non-compliance. HMRC’s guidance requires approved fulfilment businesses to keep records, check overseas customers and give them notices. Ask the warehouse to identify the specific concern rather than replying with a general assurance.
Request the affected seller account, shipments, stock lines and supporting discrepancies. Ask which documents it needs, who will review your reply and what services are currently affected. For checking the provider itself, read checking a fulfilment centre’s scheme status.
Build a reply that matches the concern
Approved warehouses must check overseas customers using their VAT registration or exemption number. If the warning concerns your identity or number, provide the relevant registration or exemption evidence and explain any difference between your trading name, legal name and warehouse account.
For shipment or stock discrepancies, assemble the customs declaration, import reference, invoice, packing list, warehouse receipt and stock movements. Map each disputed stock line to its shipment and explain mismatches explicitly. Ask your customs agent for missing declaration records; use the UK customs documents guide for the wider document pack.
Agree corrections and confirm what remains open
Prepare a concern-by-concern response showing the evidence supplied, correction needed, responsible person and expected completion date. Ask a UK tax adviser to assess any disputed tax treatment. Keep original records alongside corrected versions and explain the reason for each change.
HMRC’s guidance says warehouses should work with customers to help them meet their obligations in future. Ask for written confirmation of what your evidence resolves and what remains outstanding. A promise to obtain paperwork is weaker than the paperwork itself. Cambridge China Bridge can coordinate requests for factory-side invoices and packing records through its staff in China.
Track HMRC escalation separately
Under HMRC’s guidance, a warehouse that thinks a customer is not meeting the obligations in its notice must tell HMRC within 30 days of finding out. It must stop trading with the customer if the obligations remain unmet within 60 days of finding out. Ask it to confirm the discovery date and whether it has already reported the concern.
Treat these as the warehouse’s escalation timetable, not a reason to postpone your reply. Keep a dated record of submissions and acknowledgements. If the warehouse has reported you, ask what it reported and whether it will send your subsequent evidence or corrections to HMRC. Do not assume that submitting documents means the concern has been closed.
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Prepare for possible storage termination
While the concern is reviewed, ask whether receiving, picking, dispatch or collection will continue. Obtain written instructions for affected stock and review the storage contract with your adviser. Ask for the proposed service end date, removal arrangements, final stock statement and any disputed charges.
If an exit becomes necessary, agree collection and document handover before booking transport. Tell a prospective replacement warehouse about the unresolved concern and prepare the same evidence pack. Moving stock should not replace correcting the underlying problem. The UK warehouse selection guide covers service comparisons and exit terms.
Frequently asked questions
Is a UK warehouse tax notice a warning?
Ask whether it is a routine obligations notice or a warning about a specific concern. Request the affected account, stock and document discrepancies in writing.
What evidence should I send my warehouse?
Match evidence to the concern: registration or exemption evidence for identity checks; declarations, invoices, packing lists and stock records for shipment discrepancies.
When must my warehouse report me to HMRC?
HMRC’s guidance says it must report within 30 days of finding out if it thinks you are not meeting the obligations in its notice. Ask it to confirm that date and whether it has reported.
Can my warehouse stop storing my goods?
HMRC’s guidance requires it to stop trading if obligations remain unmet within 60 days of finding out. Ask how this affects your stock, collection and contract.