Do I need an EORI code as an individual just starting out?

Do I need an EORI code as an individual just getting started?

I’m considering launching an online shop as a hobby to test the waters for starting a business. I’ve already secured a domain and website, and I’m looking into ordering stock from places like Alibaba.

I came across information about needing an EORI code to import goods into the UK. From what I gather, it seems like I may need to register as a sole trader to obtain this code. I was planning to wait until I hit the £1,000 income threshold before registering, but now I’m uncertain since it seems I would also need a UTR to apply for an EORI, which I don’t have right now.

Have I got that right? Is registering as a sole trader the only way to get an EORI, or is there an option like DDP delivery that doesn’t require one? For those who have navigated this process, how did you manage it?

Since I’m just starting out, I’d really appreciate any recommended resources, tips, or essential things I should know before taking the plunge. Thank you!

1 Comment

  1. bdadmin

    Reply

    It sounds like you’re excited to start your online shop, and it’s great that you’re doing your research! You’ve understood quite a bit about the EORI (Economic Operator Registration and Identification) code, but let me clarify a few points.

    1. EORI Code Requirement: Yes, if you’re planning to import goods into the UK, you will generally need an EORI number. This applies to individuals as well as businesses. It’s used for customs declarations and is necessary for clearing goods through customs.

    2. Sole Trader Registration: To get an EORI number, you usually need to be registered for VAT or have a Unique Taxpayer Reference (UTR), which you get when you register as a sole trader or business. While it’s true that you might not need to register as a sole trader until your income reaches £1,000, having that registration can be beneficial if you’re planning to import goods.

    3. DDP Delivery Option: If you’re considering using DDP (Delivered Duty Paid) shipping, the supplier (like Alibaba sellers) typically takes care of the customs and duties. However, they might still require you to have an EORI number or other documentation. It’s best to check with your supplier to understand their requirements.

    4. Steps Moving Forward:

    5. Register as a Sole Trader: If you’re serious about this venture, it might be worthwhile to register as a sole trader sooner rather than later. This will give you the UTR needed for your EORI application.
    6. Apply for an EORI: Once you have your UTR, you can apply for your EORI number online through the HMRC website.

    7. Research Import Regulations: Familiarize yourself with customs regulations and any potential duties on the goods you plan to import.

    8. Resources and Tips:

    9. Look for online courses or webinars specific to starting an online business in the UK.
    10. Join forums or social media groups related to e-commerce; these communities can provide invaluable insights and advice from others who’ve been in your position.
    11. Consider using accounting software or apps to help manage your finances, especially as you grow.

    Starting a business can seem overwhelming, but taking it step by step will help. Good luck with your online shop!

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