Martin Aitken & Co Ltd News & Developments

Martin Aitken & Co: news and comment
3 minutes reading time (671 words)

BREXIT Planning for 1 January: make sure you are ready.

It certainly has been overshadowed this year, but yes Brexit negotiations are still ongoing and with only less than a month to go, what can we expect?Brexit

The UK Prime Minister, Boris Johnson, UK Chief negotiator David Frost and EU negotiator Michel Barnier continue to offer differing messages to the public about Brexit, some are positive, some ambivalent and occasionally negative remarks about the negotiations.

Firstly, remain positive about the UK and EU reaching some kind of free trade deal or arrangement. It does not benefit anyone for the UK to leave the EU without a deal of some kind.

Secondly, if there is no deal, expect both parties to return to the negotiating table in the New Year.

Whatever the outcome there are significant changes ahead for trade.

BREXIT transition: time is running out

If you trade with the EU and have not yet made preparations then here is a summary of actions to take:

  • If you move goods to or from the EU register (unless you already have) for an Economic Operator Registration and Identification (EORI) number; this is very important to have in place by 1 January 2021 to prevent cost/delay. Your number should begin with ‘GB’. Click here to read more>
  • Consider an agent to help with completing import/export forms. 
  • If you export goods see the step by step guide, click here
  • Export rules are specific by sector so review “The transition period ends in December” Government website. There you can get a personalised list of actions and can subscribe for email updates.  
  • The VAT reporting rules for EU sales can be found here. 
  • If you import goods then see the guidance “Starting to import”
  • There is a step by step guide on importing here
  • Guidance on paying VAT on imports can be found here
  • Review HMRC YouTube videos on international trade here
  • Guidance for businesses who require to appoint someone (e.g. customs agents, freight forwarders, etc) to assist with the customs process itself and the relevant declarations (and HMRC have suggested that many businesses who import goods will use a transporter or customs agent) can be found here
  • For further Government guidance, click here.  

What actions has the government taken to date?19796 MACO FINANCIAL ACUITY NEWSLETTER WEB FILES 15

Post-Brexit legislation preparing the UK for life outside EU institutions next year have been drafted or are being reviewed by Parliament. The immigration Bill received Royal Assent last week. This ends freedom of movement on 31 December and replaces it with a new points-based system.

If your business relies on EU or other non UK workers then check out the transitional arrangements to 30 June 2021 and the new rules, click here

We can expect to see further progress to bring existing EU laws and rules into UK legislation before the end of the transition period. For example, the Financial Services Bill was introduced on the 21 October to maintain the UK’s regulatory standards and openness to international markets.

This Bill is the first step in shaping a regulatory framework for the UK’s financial services sector outside of the EU. >read more

In Summary

We must all be prepared for changes in the way we trade with Europe. Even if there is a free trade deal the key thing to remember is that there will be a UK border which will mean paperwork and border checks.

Businesses that trade with the EU must get familiar with customs declarations as these will be essential for accounting for VAT.

Depending on what contracts a business has with its customers in Europe, it may have to factor in that goods could take longer to get there, meaning extra costs and administration.

In the short term there will probably be delays at the border, so it is important businesses map out supply chains and think about how to do things as efficiently as practicable post transition.

Get in touch if you have any VAT queries post transition; Iain Johnston our VAT Specialist would be happy to help.

Update to our business operations - January Lockdo...
COVID-19 update: Spending Review - what does it m...

Related Posts