The deadline for Brexit is approaching, with the UK leaving the EU on the 31st October 2019. Both businesses and self-employed that are involved in trading goods or services will have to prepare for upcoming changes if there is a no-deal.
The government is currently providing a total £16m funding to help businesses train staff in making customs declarations and help business that trade in the EU to invest in IT. This is to ensure trade with the EU continues as smoothly as possible after Brexit. Businesses based in the UK can apply for funding through https://www.gov.uk/brexit-business-grants. Grants of £25,000 or over can be claimed to support:
- Training costs for business who complete customs declarations.
- Funding for IT improvement, available to small and medium sized businesses.
Further information on grants at https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations . The deadline to apply for a grant is 30th September 2019.
UK Businesses with workers in the EU/EEA/Switzerland
Currently the EU Social Security Coordination Regulations make it so employers and workers only need to pay social security contributions (such as national insurance) in one country at a time. However, this coordination will end. Employees in the EU/EEA/Switzerland may have to pay contributions to both the UK and the country they are working in at the same time. For information on how employers and employees will be affected go to https://www.gov.uk/guidance/social-security-contributions-for-uk-and-eu-workers-if-the-uk-leaves-the-eu-with-no-deal.
Currently the government is seeking reciprocal arrangements with the EU to give a transitioning period until 31st December 2020 therefore contributions should continue as normal after the UK leave for a time.
HMRC Brexit communications resources
An Economic Operator Registration and Identification (EORI) number is a unique ID for businesses trading goods. For information on importing , exporting and EORI go to https://www.gov.uk/government/publications/hmrc-brexit-communications-resources.
You can apply for an EORI number at https://www.gov.uk/eori.
If a business imports goods, they can register for Transitional Simplified Procedures (TSP). This makes importing goods easier and give businesses extra time to send in customs documentation and pay any import duties. However, not everyone is eligible and is best to check online. For information on TSP and see if you can register, go to https://www.gov.uk/guidance/transitional-simplified-procedures.
Merchandise in Baggage
Anyone planning on carrying small amounts of goods for trade or business use in baggage when going in or out of EU countries will now have to declare it as “Merchandise in Baggage” (MiB). For example, Jewellery bought on a trip to the EU in your suitcase which you intend to sell in the UK. Find out more on MiB at https://www.gov.uk/guidance/bringing-merchandise-from-or-to-the-uk-in-baggage-if-the-uk-leaves-the-eu-without-a-deal.
VAT IT Changes
- After Brexit there will be VAT IT system changes for businesses outside the UK.
- Businesses will be able to use the UK’s VAT checking service to check the validity of a UK VAT number. They will no Longer be able to use the EU’s VAT number validation service.
- Businesses will no longer be able to use the VAT Mini One Stop Shop (MOSS) to report and pay VAT on sales of digital services to consumers in the UK. They must register and pay VAT in the UK as soon as they supply the service.
For more information on VAT IT change go to https://www.gov.uk/guidance/vat-it-system-changes-for-businesses-outside-the-uk-if-the-uk-leaves-the-eu-with-no-deal.
If you need any further information or help feel free to contact us at the office.