Transition – Personal and Business Identity
When transition ends then the UK stops being a member of the EU, so the EU and the UK become different territories with different regulations.
Specifically, EU rules state that individuals and businesses should not be treated differently, across intra EU borders. However, now that the UK is not part of that group, then they can be treated differently.
Additionally, treaties and agreements drawn by or with the EU will no longer cover UK, which will arrange its own separate treaties with maybe very different rules.
So, the first question is, are you a UK citizen or an EU citizen? Many people are eligible to claim dual citizenship e.g. get two passports and hence claim to be both or either as the need arise.
After Transition UK and Irish citizens will have full rights to live and work in the UK. But others may not have such rights beyond 30th June 2021.
EU, EEA and Swiss citizens, who have lived in the UK before 31st December 2020, may be able to claim settled status, before 30th June 2021, and hence retain full rights to live and work in the UK after Transition too.
Employers will need to check that staff have the right to work in the UK
VISA’s may be required, to visit or work in UK or for UK citizens to visit or work elsewhere. Different rules may apply to family members.
UK citizens traveling to other EU countries may also have restrictions, especially if they are working, or volunteering – so make sure you check before you or your staff travel
Business & Property Ownership
As the UK splits from the EU, so the nationality or residency of managers or owners may change, and this may have a knock-on effect for their businesses. An EU business with UK owners may still be an EU business or now a British business. A business based in UK may have been an EU business but may now be a British Business.
This can have a very big effect on partnerships, subsidiary companies, and country or European specific entities e.g. LLP
But it can also have a big effect on what your business is allowed to do, who it reports to, content of accounts and what taxes are due
- Has the nationality of owners changed?
- Has the nationality of the business changed?
- Has the location of trade changed?
- Has this changed how the business is recognized or perceived?
- Are products, services, qualifications, or licenses still valid or legal?
- Is the business subject to new regulations?
- Or regulations in a different jurisdiction? E.g. VAT
- Can you continue to trade or own the business/property, or do you need to consider changes? E.g relocation
- Will the business, staff or owners be taxed differently as a result?
Do see HMRC guidance at https://www.gov.uk/guidance/structuring-your-business-from-1-january-2021
For more information see our other blogs in this series
- What is Brexit Transition
- Licences & Certification
- Actions & Costs
Or Visit HMRC