Flags of the United Kingdom and the European Union

Are you and your business ready for Brexit?


Many businesses are still unsure on how Brexit will affect them.

HMRC have a very simple step by step questionnaire which will assist both businesses and individuals to understand how Brexit will affect them.

We encourage all our clients to follow this link to establish what Brexit means for your business:

Brexit: New Rules

From 1st January 2021 these new rules will apply:

IMPORTS – Goods you purchase outside of the UK

From 1 January 2021, you’ll need to make customs declarations when you import goods from the EU. These rules currently apply to importing goods from the rest of the world, including Switzerland, Norway, Iceland and Liechtenstein.

You can make the declarations yourself or hire someone else such as a courier, freight forwarder or customs agent.

You need to pay customs duties and VAT on all imports.

From 1 January 2021 there will be changes to how you account for VAT on goods you import, not just from the EU but from any other country. Under current arrangements where VAT applies you must usually pay it (and any duties) before the goods are released through customs.

From 1 January you’ll be able to defer payment of the VAT.

If you import goods into Great Britain from the EU between 1 January and 30 June 2021 and delay your customs declaration, you must account for the import VAT on your return covering the date of import. Where the value of the import for VAT purposes has not been confirmed in time you’ll need to enter an estimate of the import VAT due.

EXPORTS – Goods you sell outside of the UK

From 1 January 2021 you’ll need an EORI number to move goods between Great Britain and the EU.

You’ll not usually need an EORI number if you only:

  • provide services
  • move goods between Northern Ireland and Ireland

Businesses will also need to check what declarations and certificates are required for certain goods.

These are mainly for controlled goods, such as:

  • Fish
  • Plants
  • Medicines
  • Fire arms
  • Diamonds
  • Tobacco
  • Alcohol

The VAT treatment has also changed on exports

As VAT is a UK Tax which is in place to tax goods on goods used in the UK, you may be able to Zero Rate the taxable supply for goods sold to EU so long as it is within the time period (usually 3 months) and evidence is kept of the sale and the evidence is kept confirming the actual export has taken place.

It no longer specifies the need to include the receiving companies VAT number as per previous EU goods sold to business rules.

This simplifies the VAT as for goods ANYWHERE outside the UK to business and customers can now be Zero Rated.

If you have any concerns, please contact Natasha Gover at the office who will happily assist you though once you have completed the HMRC transition link.

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