No deal? No Problem. We’ll be prepared.
Leaving the EU means there are several actions for your business to take. As a nation, we are unsure as to whether the UK will leave the EU with or without a deal – so this week’s blog post looks at the top 3 points to understand about a ‘No Deal Brexit’ for businesses.
Changes to Import Processes
HMRC has announced Transitional Simplified Procedures for customs, should we leave the EU without a deal. Once businesses are registered for TSP, they will be able to transport goods from the EY into the UK; removing the need to make a full declaration at the border at the time of import and deferring paying any duty until the month after import (through setting up a Direct Debit). Registration for Transitional Simplified Systems is open to businesses now.
Changes to Value-Added Tax
The way in which businesses account for VAT on imported goods and services is likely to change. As is the case with other overseas trade, it is assumed that rather than paying import tax when your goods reach the border, you will do so in your next VAT return. As such, businesses will be required to provide its VAT number on any customs declaration. You’ll also be able to declare and reclaim your VAT expense on your VAT return.
Product Compliance and Non-tariff Barriers
Some business leaders believe that non-tariff barriers may be of greater significance than tariff-barriers. These take a variety of forms. For example, technical standards or regulations which a product or service holds, are to comply to assessment and/or certification requirements. Such rules around, for instance, packaging, safety elements etc; may require businesses to respond in an agile manner. Because whilst the UK government have announced that its regulations will be aligned with the EU at the point of exiting the union, it is possible that moving forward; legislation and regulative measures may change in the UK, or UK regulation may not be recognised by the EU. Whilst at present there is no need to act, this could change, and is something businesses should be aware of.
So, there are Applegate’s top 3 points on what a ‘No Deal Brexit’ means for businesses.
Read on here to reflect on how these impacts of Brexit are intrinsically linked to several key points to consider when thinking about how you can protect yourself against delays in your supply chain.
As always, Applegate suggests you seek specialist advice on preparing your business. The above points simply highlight some of the impacts between the UK & The EU which may arise as a result of a No-Deal-Brexit; and not between UK and Northern Ireland. Please seek advice as to how this may impact your business specifically.