UK 'No Deal' Brexit Planning
No Deal Brexit planning for your business
There is still much uncertainty around what Brexit will mean and planning for a 'No Deal' scenario seems sensible right now for all businesses. Find here our Brexit planning checklist...
As Brexit approaches, it seems the only thing we can say with any certainty is that uncertainty continues to plague the issue of our leaving the EU. The negotiations on the terms of the UK’s exit from the EU are unresolved and there are three possible outcomes: a delayed Brexit by extending Article 50, a no-deal Brexit or a modified Brexit.
HMRC has published a letter to help businesses prepare for a no-deal Brexit. The letter includes a reminder to 'Make sure you find out about our EU Exit news as it happens'.
HMRC advises businesses to:
- Register for our email update service at www.gov.uk/hmrc/business-support select 'business help and education emails', then 'EU Exit'.
- Non-VAT registered businesses should also go to www.gov.uk/hmrc/trade-with-the-eu for changes that affect them.
- If the UK leaves the EU without a deal, then UK businesses will be responsible for making customs declarations. Businesses that trade with the EU should ensure they register for a UK Economic Operator Registration and Identification (EORI) number as soon as possible. In the event of a no deal Brexit, this identification number will be required even if the business appoints a customs agent to assist in making customs declarations.
Businesses that buy and sell from the EU should have contingency plans in place which will need to be flexible to cope with a variety of possible outcomes.
In the event that the UK exits the EU without a deal, many UK businesses will need to apply the same processes to EU trade that apply when trading with the rest of the world.
The Government has published guidance: “UK government's preparations for a no deal scenario” and it continues to provide updates on how to prepare for the event. See: https://www.gov.uk/government/publications/uk-governments-preparations-for-a-no-deal-scenario
Here are some of the areas you should consider, particularly if you import or export goods to the EU and haven’t had the need to complete the various forms before. The checklist also considers general implications of a “no deal” Brexit:
Disclaimer: The information above does not constitute individual advice. New Forest Tax Accountants will not accept any responsibility decisions taken or not taken on the basis of the information above. Any reference to legislation and tax is based on our understanding of U.K. Law and HMRC practice at the date of publication of this guidance. Specific advice should always be obtained prior to taking or not taking any actions.