The HMRC are asking VAT registered businesses to ensure they are well prepared for when the UK finally splits from the EU at the end of this momentous year.
Businesses Who Trade With The EU Or Rest Of The World
If you are a business who has previously traded with the EU or the rest of the world you should have received a letter on this subject from HMRC. Here are some of the main points from the letter copied from an article by Pat Sweet on the Accountancy Daily website:
`The letters point out that the actions required to ensure they can continue trading from 1 January 2021 will not change regardless of the outcome of the government’s current negotiations with the EU.
`From 1 January 2021, the UK will operate a full, external border with the EU. This means that there will be controls placed on the movement of goods between Great Britain and the EU.
`This means that from that date, businesses need to submit declarations when importing and exporting goods that are categorised as ‘controlled’. Import processes for non-controlled goods will be introduced in 3 stages: January, April and July.
Preparing For The New Processes For Moving Goods
`The letters explain what businesses need to do to prepare for the new processes for moving goods between Great Britain and the EU.
`This includes making sure they have a UK economic operator registration and identification (EORI) number, deciding how they will make customs declarations, and checking if their imported goods are eligible for staged import controls.
`Most traders with a good compliance record will be able to defer import declarations on most goods for up to six months after 1 January 2021.
`From 1 January 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT return for goods imported from anywhere in the world.
`Import VAT will not be due at the border if goods in a consignment do not exceed £135 in value. The only exceptions will be excise goods and gifts.
`There will be new rates of customs duty for imports – called the UK global tariff.
`The free Trader Support Service (TSS) will handle the new processes arising under the Northern Ireland Protocol for from 1 January 2021.
The letter states HMRC will provide more guidance on changes to trade with the EU over the coming months, as the negotiations progress.`
For Help & Advice Call Our Accountancy Team
It is vitally important that all businesses follow any new rules and protocols so if you do need any help with any of the above, or any other tax or accountancy related issue, please get in touch with the WHR Accountant`s team by calling our offices on 028 3752 2909.