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LTS helps e-commerce firms get their house in order

[ October 21, 2025   //   ]

LTS Global Solutions has been approved by HMRC’s Fulfilment House Due Diligence Scheme.

Introduced under the Finance Act 2016, the scheme is a mandatory requirement for businesses storing goods imported from outside the UK or EU prior to their sale to UK consumers, to prevent overseas sellers from exploiting fulfilment services to evade tax.

By joining the scheme, LTS has demonstrated that it ensures that goods stored on behalf of non-UK sellers are managed securely, transparently, and in line with UK tax law. This includes maintaining six years of audited compliance records, carrying out stringent client due diligence and employing dedicated compliance staff trained to verify documents, maintain accurate records, and escalate issues promptly.

Ecommerce companies working with non-compliant fulfilment providers run the risk of financial penalties and stock seizure.

The measures also ensure that VAT obligations are fully met, avoiding unexpected tax liabilities for overseas sellers.

LTS has also set up an onboarding process to deliver a smooth and compliant transition for e-commerce clients entering the UK market, allowing businesses to scale confidently without the risks of non-compliance and any operational disruption. This includes detailed risk screening, verification of documentation, WMS integration, and pre-launch test cycles for goods receipt, picking, labelling, and customs procedures, which help identify potential issues early and minimise any potential operational disruptions.

Managing director of LTS Global Solutions, Dave Hands, said: “The growth of the ecommerce market is there for all to see but the infrastructure needs to keep pace with that growth. With more businesses seeking to expand their presence beyond their domestic borders, this allows us to adapt to what is becoming a rapidly expanding market.”

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