We’ve been asked a number of questions lately about what happens to businesses trading in Europe after we leave the EU. So, to help you, we’ve summarized information provided by HMRC in our latest blog post below.
At 11am on 29 March 2019, the UK will officially leave the EU, which includes the Customs Union, and will then enter what is called the ‘implementation period’. Te UK Government has made agreements with the EU regarding withdrawal and trading during the ‘implementation period’ will, in the main, stay the same until 31 December 2020. However, the Government is now focusing on agreeing what happens with our relationship with the EU after this period.
What if no agreement is made about this?
If there is no deal, the Government has said it will prioritise stability for UK businesses, such as minimsing delays and additional burdens for legitimate trade while working to ensure compliance. Trade will look different but the focus will be on providing as stable an environment as possible.
If you are a UK trader importing or exporting goods within the EU, the way you trade with the EU will be affected.
As a UK business, you will need to apply customs, excise and VAT procedures to all goods traded with the EU and your trading partners in the EU will have to apply customs, excise and VAT procedures to any goods they receive from you. These is the same as if you traded outside the EU.
Also, if you currently trade with the EU, you’ll need to complete customs declarations from March 2019 and customs checks will apply to your business.
What can you do to prepare for the change?
March 2019 might seem a while away, but there are some things you could do to prepare yourself for the changes:
- If you only trade in the EU, you should find out more about the procedures around trade with non-EU countries, as these same rules will apply.
- The Government has also published various notices relating to leaving the EU with no deal. It would be worth reading some of these to help you understand your position.
- You can also stay up to date by registering for HMRC’s EU Exit update service (enter your email address and select EU Exit).
Our team would also be happy to advise you or put you in touch with the right department if you have any queries.