Deal or No Deal: How can traders prepare for Brexit?

 

Now that the new year has started, there is even more focus on the approach of Brexit, when the UK will leave the EU on the 29 March. It is now a conceivable reality that the UK will leave the EU with a no deal. If this happens, your business may need to prepare for some potential changes, so that the transition can run as smooth as possible.

 

How can you prepare?

HMRC have recently published advice for VAT registered EU-only traders in the UK except Northern Ireland. It advises that the following steps should be taken by these traders, so they can be prepared if the UK leaves the EU with a no deal.

• Register for an Economic Operator Registration and Identification (EORI) number from the government website. This number will allow traders to continue to import and export goods to and from the EU after 29 March if the UK leaves with a no deal. This allows the trader to continue business without too much upset before they can apply for authorisations to ease the customs procedures.
• Traders should decide whether to hire an agent to make declarations on imports and exports on the traders behalf or whether this is done by the trader themselves via software which connects to HMRC’s systems. In either case the trader will need to research whichever option they choose to find out what you will need to do before the 29 March.
• If you have an organisation which moves your goods, such as a haulage firm, you should contact them to find out if you need to supply any further information.

 

If these steps are not taken by the required businesses then on 30 March they will not be able to move goods in and out of the country.

 

What if you’re not VAT registered?

Those who trade with the EU but are not VAT registered will also be required to obtain an EORI number from HMRC, but this may be a little more complex. Unlike those who are registered for VAT and can use their VAT registration number to simplify the process, unregistered businesses will need further details which may not be readily available.

 

What guidance is there?

The government have also launched a new portal for businesses of all types to find out more information relevant to them in regard to Brexit. You can find out about possible changes to employing EU citizens, importing and exporting and much more. There is more relevant information available to business owners as you are able to answer some questions about your business which will inform you of specific changes you need to consider. You can take a look at this here: http://bit.ly/2SIgm0p

 

Please get in touch with us if you have any concerns regarding the changes to come and how you can prepare for the future.