Issues with PayPal app

Hi there

A client just got in touch about a site I developed for her ages ago that uses the paypal shop app. There are two issues that I need help with. I developed the site ages ago and can't remember how the PayPal app was set up so apologies for this. The website in question is https://www.kirstylorenz.com/shop/

Issue 1. Shipping is not applied when it's selected.

With each product in the shop you can select a shipping mehtod/cost form a drop down menu, however it doesn't matter what is selected as the cost for shipping is not added to the cart, only the cost of the item. This is the code within my product.html template:

<div class="right">
    <h2><perch:shop id="productTitle" /></h2>

    <perch:shop id="productDescHTML" encode="false" />

    <perch:form id="_xclick" method="post" action="https://www.paypal.com/cgi-bin/webscr">

    <perch:input type="hidden" name="business" value="<perch:setting id="perch_shop_paypal_email" />" />
    <perch:input type="hidden" name="currency_code" value="GBP" /> 
    <perch:input type="hidden" name="cmd" value="_cart" />
    <perch:input type="hidden" name="add" value="1" />     
    <perch:input type="hidden" name="item_name" value="<perch:shop id="productTitle" />" />
    <perch:input type="hidden" name="item_number" value="<perch:shop id="productCode" />" />
    <perch:input type="hidden" name="amount" value="<perch:shop id="productPrice" />" />

    <perch:if exists="productOptions_html"><perch:shop id="productOptions_html" encode="false" type="hidden" /></perch:if>
    <br />
    <h3>Select Shipping Option</h3>
    <perch:input type="select" id="shipping" required="true" value="select" options="Pick up from Studio (free)|0,Cards & Teatowels (free)|0,Prints (free)|0,Workshops (free)|0,Homewares (£7.95)|7.95,Small Painting (£19.95)|19.95,Medium Painting (£49.95)|49.95,Large Painting (£84.95)|84.95" label="Pickup/Shipping" /> 

    <br />

    <div class="buttons"><span class="price">Price: £<perch:shop id="productPrice" /></span><br /><perch:input type="submit" name="add" value="Add to cart" /></div>
    </perch:form>   
</div><!-- END right -->

I'm convinced this was tested and it worked at the time the site went live, but not sure why it would suddenly stop working so maybe It never worked. Can anyone help me with getting the shipping to be applied when it's selected from the drop down menu. Is there any other code or template I need to inspect?

Issue 2. Is probably a PayPal issue but I'm not sure

When someone does add something to their cart a paypal drop down window appear on the top right of the screen. At the bottom of this are the words 'does not include shipping & tax' - again i think this is a new error as I don't remember this appearing when building the site but I can't be sure. Is this appearing because the shipping method selected has not been applied - see issue above - or is there a setting in PayPal I need to deal with. My client doesn't want this text to be there, but I don't know whether it's something I can switch off, or whether it's appearing because of Issue 1 above.

This is from the diagnostics in the settings to show you the versions the site is running: Perch: 2.3.2 Production mode: Production (100) Installed apps: content (2.3.2), perch_forms (1.7), perch_shop (1.1.2), perch_blog (3.8.2)

Any help in this wouldbe much appreciated as I'm not sure how to fix the problems.

Thanks

Evie