VAT News

UK-HMRC issue letter to businesses regarding 'no-deal' Brexit

Throughout December, HMRC issued letters to business trading exclusively or heavily with customers based in the EU, outlining steps that they feel businesses should take in case a deal for the UK's withdrawal from the EU cannot be reached prior to their exit. The letters were aimed at those trading in goods.

Within the letters, HMRC outlined 3 key points for businesses:

1-If they have not already, businesses should obtain a UK EORI number. This number allows businesses to import goods into the UK. Customs procedures will be difficult and time-consuming if an EORI is not held.

2-Consider hiring a specialist agent in imports/exports. If there is a 'no-deal' it is very likely that processes will change and significantly increased administration will arise.

3-Discuss the potential requirements with partners who assist in the movement of your products (freight forwarders etc). Additional documentation etc. will be required and it is vital to ensure a system is in place to deal with this to minimise disruption to the business.

After the events of this week, it is clear that a 'no-deal' Brexit remains a possibility and so plans must be made for this eventuality.

Related articles

HMRC: No VAT on e-Publications for UK Citizens as of 1 May 2020

HMRC has scrapped VAT completely off e-books and e-publications from 20% down to 0%. In an effort to make reading more accessible for the UK public while in self-isolation due to the Coronavirus, HMRC fast-tracked the motion and implemented it seven months ahead of schedule. 

Read more
COVID-19 VAT tips for businesses

These COVID-19 VAT tips for businesses will help companies around the world boost liquidity in times of economic challenges. Learn how to harness VAT refunds and compliance.

Read more
COVID-19 VAT Cashflow Tips (Part Two)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more