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.

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