Transition – Actions & Costs
Anyone who has dealings with the EU or is under EU regulations is affected by Brexit E.g.
- Staff or products from the EU
- Staff or products travelling to or through the EU
- EU products, services, or businesses in the supply chain
- Using EU status or regulations for contracts, licenses, labeling, quotas
- EU owners, equity, loans, property, data, websites
Every business should therefore review the effect on them and take appropriate actions
A current risk assessment is highly recommended, as the transition period ends at 11pm on 31st December 2020; but systems and rules are still being written so review and actions may need to be flexible.
Specifically, UK & EU are now different jurisdictions, and Northern Ireland has its own rules, so everything needs to be reviewed in this light
Costs and Pricing
Your profits may be greatly affected by these changes:-
Firstly, by the additional cost of assessment and recertifications or labelling.
Secondly, there may be significant ongoing costs as regards tariff changes and paperwork obligations.
Thirdly there may be big restructuring changes required to accommodate new obligations, especially as regards technology, but also training.
Do consider reviewing your pricing model to cover these additional costs, that may originate anywhere in your supply chain.
Everyone should abide by the new rules however there are some reliefs available
- There may or may not be a deal with EU, that may include some simplifications
- There is a special Northern Ireland Protocol for NI trade
- HMRC have introduced the Trader Support Service (TSS) to facilitate use of the Northern Ireland Protocol.
- There are grants available for recruitment, new systems and training
- HMRC will be letting anyone use postponed VAT accounting for all imports to aid VAT cashflow
- HMRC have set up a simplified declarations procedure for reporting imports during the first 6 months
- Those selling goods to the UK can use an Online Market Place (OMP), who will then be responsible for managing VAT on these supplies
- HMRC is introducing a bulk declaration option for small packages under £135 each, imported to GB
- EU will be introducing One Stop Shop ( OSS) in July 2021 for small value goods sold to customers in the EU
- UK has agreed to continue to recognize EU qualifications
- EU citizens living in the UK can apply for settled status
- HMRC have been issuing EORI numbers in advance
- Kent Access Permits ( KAP) and the Goods Vehicle Movement Services ( GVMS) have been introduced to pre check trucks before they get to the channel ports, to try to prevent congestion and repatriation.
- UK has obtained agreements with most countries to replace EU agreements and hence continue trade as normal with the rest of the world.
Do make sure you know your position, and if you need help then talk to us.
Or find out more at https://www.gov.uk/transition
For more information see our other blogs in this series
- What is Brexit Transition
- Licences & Certification
Or Visit HMRC