Brexit action is required now
The government has pledged £705 million to prepare its post-Brexit borders and launched a £90 million advertising cam¬paign, telling business to ‘Check, Change, Go’
The UK is introducing border checks with the EU in three stages from the 1st January, reversing its original plans, so it could give companies struggling with the coronavirus crisis more time to complete customs declarations and pay tariffs.
Cabinet Office officials estimate that British businesses will now need to complete 400 million import and export declarations in 2021, but 75% of businesses have made no Brexit preparations and there is increasing concern that many will not be ready for the changes that are coming on the 31st December 2020.
By reviewing your historic activity, we can predict the impact of next year’s changes to your European business, ensure compliance and provide regular reporting of trade volumes and tax liabilities, so that you can monitor supply chain performance, while tracking the cashflow implications of VAT and tariff liabilities.
The UK’s post-Brexit border regime will come into place over three stages next year, in January, April and July respectively.
Export declarations and UK exit Safety and Security declarations will be required for all goods from 1st January 2021.
From 1st January 2021, businesses importing “standard goods” will need to fill out custom declarations and pay any necessary VAT.
Subject to approval, they have six months to submit customs declarations and VAT can be deferred until this time.
The right to defer import entries is most definitely conditional and it is vital that businesses check now that they can qualify.
However, those importing controlled or excised goods – like alcohol and tobacco – will need to submit customs declarations immediately.
From April, all importers of products of animal origin will need to fill out health documentation and from July, submit customs declarations and pay relevant tariffs immediately.
Contact us now, to see how we can help ensure your business is compliant for January 2021. Ignorance will not be a defence, preparation now will ensure smooth transition.