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

UAE Introduce Electronic System for New Excise Tax Reporting

The Federal Tax Authority has unveiled a new electronic system designed to aid the registering of excise goods in the UAE.

Read more
10% of UK Businesses Miss First MTD Deadline

HMRC figures show one in ten UK firms filed VAT non-compliantly after the first deadline.

Read more
Croatia Announce Reduction to Standard VAT Rate

Croatian Finance Minister, Zdravko Maric, announces plans to reduce standard VAT rate to boost national tourism, hospitality and food & drink industries.

Read more