BREXIT: Letters to businesses about new trade arrangements with the EU. Information about movement of goods between Great Britain and Northern Ireland still to be released.
HOW TO PREPARE FOR BREXIT – HMRC RELEASE
On 12 June 2020, the UK government announced that new border controls on imports from the EU to Great Britain will be introduced in stages, and customs declarations for goods which are not controlled can be delayed until 30 June 2021.
At the same time HMRC sent a letter to companies in order to be able to make all available preparations regarding Brexit. The steps included in the letter are mentioned below:
What you need to do to prepare for BREXIT:
– Make sure you have a GB EORI! You should already have an Economic Operator Registration and Identification (EORI) number for GB but if you don’t have an EORI number you can register for an eori number directly from Global VAT Compliance’s page here: https://eori.gvc.tax/
– Decide how you’re going to make customs declarations
Customs agents, freight forwarders and express operators can help you with declarations and ensure you’re providing the necessary information.
– See if your imported goods are eligible for staged controls
Most traders with a good compliance record will be able to defer import declarations on most goods for up to 6 months after 1 January 2021.
– Decide how you will account for import VAT when you make a customs declaration
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.
– Check if Import VAT is due at the border
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.
– Check the Controlled goods list to see if you need to complete declarations from January.
If your goods are not on the list you can choose to delay import declarations until July 2021
– Check the government’s tariff tables and consider how your trade will be affected
From 1 January 2021, there will be new rates of Customs Duty for imports – called the UK Global Tariff.
– Sign up for the new Trader Support Service, if you move goods between Great Britain and Northern Ireland or bring goods into Northern Ireland from outside the UK
The free Trader Support Service (TSS) will handle the new processes arising under the Northern Ireland Protocol for you from 1 January 2021. Further information about movement of goods between Great Britain and Northern Ireland will be available soon. Please note TSS is not available for goods moved between Great Britain and the EU.
Keep up to date
You can be updated on all the latest evolvements regarding BREXIT and the new requirements for your company by following our news section and subscribing for our Newsletter.
Source Credit – HMRC, VATupdate.com