In the event of ‘no deal’ HMRC warns businesses to prepare.
The latest guidance to businesses in the event of the UK leaving the EU with ‘no deal’, includes updates on customs procedures, import & export registration information as well as VAT rules.
HMRC’s latest letter to business, advises taking a number of actions to prepare for no deal. These include:
• registering for an Economic Operator Registration and Identification (EORI) number at Get a UK EORI number to trade within the EU
• deciding if they want to hire an agent to make import and/or export declarations for them or if they want to make declarations themselves using relevant software
• registering for Transitional Simplified Procedures (TSP), which is a new process to make importing easier than it otherwise would be for the initial period after the UK leaves the EU, should there be no deal – registration opens from 7 February on GOV.UK
There are also important updates on the way businesses trading with the EU pay import VAT and use EU VAT IT systems if we leave with no deal. You can read the full letter at Letters on ‘no deal’ Brexit advice for businesses only trading with the EU.
These changes do not apply to trade across the Northern Ireland-Ireland land border. HMRC will set out information about the arrangements for trading with Ireland as soon as they know more.
Businesses can access new guides on GOV.UK on:
The guides provide further information explaining what these changes mean for UK businesses that trade with the EU. You can find the guides at Trading with the EU if the UK leaves without a deal.
Nick Paterno, managing partner at McBrides Chartered Accountants said: “There have been several Government announcements about how businesses could be impacted in the run up to Brexit and it’s likely that there will be many more. It’s imperative that businesses keep on top of these, otherwise their operations could be harmed or they may not be taking advantage of funding which could cushion their business against any impact arising from the UK’s departure from the EU.”
Please get in touch with McBrides if you want to discuss the above further. You can also keep up to date with the latest news affecting business via our website, Twitter and LinkedIn.
Additional information to clients involved in customs intermediary practice:
£5 million of funding being made available by HMRC to encourage automation & training
HMRC have announced that customs intermediaries and traders who complete customs declaration forms can apply for grants worth £5 million in total to support employee training and IT improvements.
The grants, which cover up to 50% of the cost of training staff, will be allocated on a first come, first serve basis. £2 million will be allocated to fund training for intermediaries and traders working with customs declarations now or in the future, while £3million will be made available in grants to improve IT for small and medium sized businesses in the customs intermediaries sector. The aim is to boost efficiency and to encourage use of automation. Businesses can apply for both grants by visiting GOV.UK.