By Helen Fraser – Tax Advisor
This week, after the Supreme Court ruling that the suspension of Parliament was unlawful, Brexit returns to the news agenda. In light of this, we have highlighted below Government Advice for dealing with a no-deal Brexit.
Preparing for Brexit
In preparation for the UK leaving the EU, HMRC are continuing to issue guidance for businesses who import and export goods between the UK and the EU.
Leaving the EU without a deal means there will be immediate changes to the way UK businesses trade with the EU that may impact your business.
• UK businesses will have to apply customs, excise and VAT processes to goods sold into the EU (these are the same rules that already apply for goods and services traded outside of the EU).
• Trading partners in the EU will have to apply customs, excise and VAT processes to trade they carry out with you, in the same way that they do for goods and services traded from outside of the EU.
Applying for an Economic Operator Registration Identification (EORI) number
As part of the controls at customs, you will be asked for a EORI number (Economic Operator Registration Identification number).
The EORI number should be a twelve digit number beginning with ‘GB’.
HMRC have written to more than 88,000 VAT registered businesses to let them know the UK EORI number they’ve been automatically assigned.
Businesses will not be able to move goods in and out of the UK without one.
If your business is not VAT-registered, but trades overseas, you will still need to apply now for a UK EORI. HMRC cannot give you this automatically.
Here is a link to the guidance HMRC have issued: https://www.gov.uk/eori
Exporting goods from the UK to the EU
HMRC have issued guidance and this link https://www.gov.uk/prepare-export-from-uk-after-brexit includes the steps you will need to take to ensure that you are prepared for what is needed when exporting goods to outside of the UK.
Importing goods to the UK from the EU
HMRC have issued guidance and this link https://www.gov.uk/prepare-import-to-uk-after-brexit includes the steps you will need to take to ensure that you are prepared for what needed when importing goods into the UK.
Transitional Simplified Procedures (TSP)
HMRC have introduced TSP (Transitional Simplified Procedures) for businesses who import goods from the EU into the UK.
TSP will be available for a limited time only.
You would need to apply for TSP and you will need a EORI number and your business details in order to apply.
After successfully registering for TSP, your business is able to delay submitting a full import declaration and delaying paying any import duty. Without TSP you would need to submit a full import declaration and you must pay the customs duty in full – only then are the goods released from customs control.
Here is a link to further information on TSP:
Who can help?
You can appoint a business to deal with customs for you, these are:
• Freight Forwarders,
• Customs Agents and
• Express Couriers
Here is a link to further information on appointing a third party to help you:
HMRC are continuing to update their guidance for which there are various links on this page.
We will continue to keep you informed as and when things change.
If you have any queries or concerns, please call or email your usual contact at Inspire for help.