The UK exited the EU on 31 January 2020. During the so-called transition period between 1 February and the end of 2020 UK-EU business rules will not change. Despite not knowing the detail of the proposed trading deal, businesses are advised to prepare for what comes into effect on 1 January 2021.
Here are 10 things businesses should do during the transition period:
Ensure employees who are EU citizens are aware of the settlement scheme and the need to register;
Understand how additional customs duties could affect sales or supply chain;
Ensure you have a UK EORI number, if you are trading with the EU/EEA or countries outside the EU/EEA. EU businesses will need an EU EORI number to trade with the UK;
Consider if you will complete customs documentation and what information will need to be provided;
Understand what EU regulations apply to the goods you produce which are sold to the EU market customers;
Consider if you could benefit from simplified import procedures. You will need to register to use them. It means you may not need to settle VAT and duties (if any) on imports immediately at port;
Review contracts to see how they deal with different trading conditions (eg, who pays for customs duties on trade);
Review data flows to identify whether personal data is received from the EEA, including from suppliers, processors and other groups;
Consider how you might be affected by changes to VAT administration;
Reflect Brexit risks and opportunities in financial reporting, so your stakeholders know how you are responding.
For further information please call 020 3746 1594, or email info@sadleradvisory.com