There will be new rules for trade, travel and living in the UK and EU from 11.00pm on the 31 December 2020. Please read the information below provided by Asquith & Co Accountants.
What can we expect with less than 36 days to go?
Whatever the outcome there are significant changes ahead for travel and trade.
If you are travelling to the EU from the UK after the 1 January 2021 then check out the Government website Visit Europe from 1 January 2021
If you have not yet made your business preparations, check out the Brexit transition website
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 – https://www.gov.uk/eori
- Consider an agent to help with completing import/export forms – www.export.org.uk ·
- If you export goods see the step by step guide here: https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021
- Export rules are specific by sector so review “The transition period ends in December” Government website here : https://www.gov.uk/transition
- The VAT reporting rules for EU sales can be found here: https://www.gov.uk/guidance/vat-how-to-report-your-eu-sales
- If you import goods then see the guidance “Starting to import” here: https://www.gov.uk/starting-to-import/moving-goods-from-eu-countries ·
- There is a step by step guide on importing here: https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021
- Guidance on paying VAT on imports can be found here: https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad
- Review HMRC YouTube videos on international trade here: https://www.gov.uk/guidance/help-and-support-for-international-trade
- 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 here: https://www.gov.uk/settled-status-eu-citizens-families
- The Agricultural Bill removes the Common Agricultural Policy and replaces it with new UK supports for farmers. The Government agreed that farmers will receive the same level of support as they currently do through the Common Agricultural Policy until 2024, while the current system of subsidies is gradually phased out, More details here: https://services.parliament.uk/Bills/2019-21/agriculture.html
- 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. The current position can be found here: https://www.gov.uk/government/news/financial-services-bill-introduced-today
New Trade deals
EU-UK trade accounts for half of overall UK trade and seven of the UK’s top ten trading partners are EU members. A trade deal with the EU is, therefore, a desirable outcome, from the ongoing negotiations with the EU. See: https://www.bbc.co.uk/news/uk-47213842
The Government is already negotiating new trade deals elsewhere. Whilst the UK was an EU member, the UK was part of 40 trade deals which the EU had with more than 70 countries. More than 20 of these existing deals, covering 50 countries or territories, have been rolled over and will start on 1 January 2021.
It is worth noting fifty-two countries currently have free trade deals in place with the UK for the end of the Brexit transition period, however, these deals account for only 10 per cent of the UK’s total cross-border trade (ONS).
On 23 October, the Government signed a new trade agreement with Japan, which means that 99% of UK exports there will be free of tariffs.
There are ongoing trade talks with Australia, the US and New Zealand.
We must all be prepared for changes in the way we travel and 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
All of this information is courtesy of Asquith & Co Accountants, for more information on how they can help support your business you can visit their website here