Research conducted by BusinessWest suggests that only 36% of UK businesses comprehend the ramifications of Brexit on their business. If you have shelved any attempt to deal with the red tape that Brexit entails, then help is at hand. UK businesses trading with Europe and Northern Ireland share similar concerns. For this reason, I have selected applicable information and compiled a step-by-step guide to Brexit that focuses on the main points involved in navigating the process with signposts to additional resources. However, this article does not claim to replace any necessary legal or professional advice your business may require.
One size does not fit all in this instance therefore, it’s imperative to continually gain the relevant knowledge that applies to your sector. Firstly, businesses need to protect against supply chain disruption. Businesses using imported components require a good understanding of their suppliers and their location to alleviate future complications that may arise as trade deals with the EU are finalised.
Due to new customs requirements for UK-EU trade. Businesses can apply for Authorised Economic Operator Customs Simplification (AEOC) status. This ensures faster clearance of goods across custom borders with fewer interventions.
Authorised Economic Operator Customs Simplification (AEOC)
There are two types of status. Besides the (AEOC) the Authorised Economic Operator Customs Security and Safety (AEOS) status that benefits from priority treatment and reduced declaration requirements at customs.
Authorised Economic Operator Security and Safety (AEOS)
Applications for either status are subject to a criteria which applies to all businesses regardless of size.
A Step-by-Step Brexit Guide
Importing Goods
Businesses importing to the UK from the EU must consider new customs and VAT regulations. However, there are different rules for sending goods via post and to Northern Ireland. In the main, businesses will require an Economic Operators Registration and Identification Number (EORI) to move goods between the UK and EU.
On submission, a notification may be immediate or within 5 working days if HMRC requires additional information. For UK based businesses the EORI number will be prefixed by GB and for Northern Ireland, XI.
Detailed steps are set out on the GOV.UK website illustrating how to import goods into the UK from any country. This includes details such as, customs declarations, transporting goods, commodity codes, the value of goods, delaying and reducing duty payments, checks for license or certificate of goods, labelling, marking and marketing rules and rejected goods. Records of commercial invoices, customs paperwork and import VAT certificate (C79) must be retained by the business.
Exporting Goods
Information required for exporting goods from the UK to all destinations including Europe can minimise delays at the borders. This consists of rules for exporting, licences required to export, preparing to export, recipient of imported goods, export declarations and transport, classifying goods, preparing invoices and documentation, customs and the importance of keeping commercial invoices and customs paperwork records.
Cashflow
The effect Brexit will have on exchange rates and cashflow may impact your business. Therefore, consider the tax treaties arranged between the UK and relevant countries to explore how this may affect your business. For online sales ensure check-outs include the appropriate payment options either euros or suitable currencies.
Services
The UK no longer has the rights and protections previously provided by the EU Directives and EU Treaty Rights of Freedom and Movement and Freedom of Establishment. UK businesses are no longer considered a local business therefore, businesses and professionals providing services in the EEA will be regarded as services from a ‘third country’. This may also imply legal, regulatory and administrative barriers.
Generally, the regulations are different for each sector and EU member therefore, select the appropriate member state that applies to your business for an individual country guide.
Employees and Hiring
To ensure that your current and future employees who are UK citizens are eligible for the same rights as UK citizen and can remain in the UK post-Brexit they are required to register for Settled Status.
Employees who have resided in the UK for five years or more by 31st December 2020 can apply for a Settled Status. For employees who have lived in the UK for less than five years, they can apply for a Pre-settled Status. This will allow them to work in the UK until the five years expires then they can apply for a Settled Status. The deadline for applications is 30th June 2021.
The immigration system for hiring from the EU is a points-based model that claims to treat EU and non-EU citizens equally to attract skilled and talented people who can contribute to the UK’s economy. Businesses thinking of hiring from the EU in the future can consider applying for a sponsor license.
Travel
Consider the following points travelling to the EU for business.
● Ensure your passport is valid for six months or more and that it was issued less than 10 years ago.
● The European Health Insurance Cards (EHIC) are valid until the expiry date thereafter, UK residents will need to apply for a Global Health Insurance Card.
● A visa is not required for 90days in any 180 days of a trip. However, it’s advisable to check the rules of specific countries.
Leaving the EU means roaming charges apply to UK mobile packages therefore, check tariffs with your service provider.
In conclusion, continually stay abreast of current changes in Brexit regulations and legislation to prepare your business to operate within Brexit effectively.
©2021 Marie Loney
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