Is your business ready for Brexit?

Is your business ready for Brexit? The UK left the European Union on 31 January 2020. The transition period ends on 31 December 2020.

Is your business ready for Brexit? The Covid-19 pandemic has dominated the news headlines this year but Brexit is still progressing. During the transition period, the UK remains in both the EU customs union and single market. Until the end of the transition period (31 December this year), most things stay pretty much the same. So, what do businesses need to think about in terms of UK-EU trade, supply chains, etc. from 1st January?

Is your business ready for Brexit?

Is your business ready for Brexit? Brexit could affect your business in a number of ways. For example, businesses that import or export goods between the UK and the EU will need to consider what operational changes they will need to make in advance of January 1st. The UK Government has set up a helpful webpage which includes useful guides and checklists https://www.gov.uk/transition.

Customs Regime

A new customs regime will come into force on 1 January 2021. Hopefully, a trade deal can be agreed by then, as the final arrangements are still not clear. UK businesses that trade with countries outside the European Union will already be familiar with an Economic Operation Registration Identification (EORI) number. From 1 January, British companies will not be able to trade with the EU without an EORI. In the absence of an EORI number, goods could be held up at ports. In addition, non-compliant businesses won’t be able to take advantage of any special measures such as deferred tariff payments that look set to be introduced to smooth the flow of trade. Another consideration for businesses is taxation.

Business Planning

HMRC offers guidance on its website for the future treatment of payments between UK companies and EU member states. As ever, tax can be a complicated subject and it is often best to invest in some tax advice from an expert. Finally, businesses that trade with the EU may need to consider any additional regulatory obligations that come about as a result of Brexit.

Guidance

As things currently stand, there are a lot of unanswered questions as we still don’t know if a last-minute trade deal will be agreed between the UK and the EU. Either way, it’s worth keeping an eye on the gov.uk website for any additional guidance or updates. Please talk to us if you would like any more information.