I've been looking into all that EU packaging crap. Ive found a company which is a "one stop shop" so contacted them. But looks like the cost per year will be about £400

That's a LOT of goods to sell to recover that amount of profit.
More annoying is it seems I would have to stick recycling labels on the boxes... Which are all different across EU states

Isn't it ironic that we have recycling schemes and then we generate even more huge waste with additional labeling
This basically results in a lot more work and expense to deal with EU orders. it would likely add about £2 extra per EU order minimum.
I also find the whole thing perplexing. I mean, EU customers would be paying me recycling costs for their rubbish. This would be like me paying France money to take away my rubbish.. I mean WTF ?? We have to pay for our own rubbish to be taken away in the UK.. and now I would be paying for other people's rubbish to be taken away ?! It doesn't really make much sense to me. In my view, the customer purchased the complete package , they should deal with the rubbish as they paid for it.

But I know nothing.... The whole thing just seems backwards to me. It's not like I'm dumping 100s of tonnes of rubbish into the country each year but I get treated the same as big business anyway in some states
The issue really becomes if I even make £400 profit to break even on EU orders. Likely not. Again the only solution is to unfortunately add a EU tariff to pay for it all. Even so, I would need 200 EU orders to break even with the extra costs.. again this is unlikely..so it could add up to £5 per EU order. The whole situation is unavoidable if I am to try selling to EU customers. This new cost may further limit orders... It's a bit of a no-win situation. In particular low value goods.
Some EU states do not have this package "tax". But these are generally very low volume states anyway.
This almost certainly will have added charges..
Austria, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
It may be similar simply not to ship to those destinations but some like Germany, France etc are likely the best customers.
Always seems, damned if do and damned if don't all the time
