This week has seen HMRC publish various guidelines and recommendations to help businesses prepare for a ‘no deal’ Brexit.
HMRC have written to businesses that only trade in the EU and are registered with HMRC for VAT purposes setting out three specific preparatory actions they should take now in case of a ‘no deal’ Brexit. They have also published a range of related guidance and opened up a grant scheme to help support training and IT improvements for customs intermediaries and traders that complete customs declarations. Whilst HMRC consider that it is unlikely the Brexit negotiations will result in ‘no deal’ they are urging business to make the recommended contingency plans.
Letters on ‘no deal’ Brexit advice for businesses only trading with the EU
HMRC have written to all businesses that only trade in the EU and are registered with HMRC for VAT purposes to ask them to take the following three actions now:
Other guidance on Customs, VAT and Excise
In addition to publishing the above letter, HMRC have also published (or updated) a number of other related documents. These are collected together on one page and provide further detail on obtaining an EORI number, customs procedures and declarations, and the movement of goods through roll-on/ roll-off ports and the Eurotunnel.
HMRC have also published a summary of the relevant ‘no deal’ regulations, explanatory memoranda and an impact assessment which sets out the implications of a no deal Brexit on the movement of goods.
‘No deal’ preparedness grant schemes
Finally, HMRC have now opened up the application of grant schemes to help support training and IT improvements for customs intermediaries and traders that complete customs declarations. Eligible businesses may apply for one of two grants, with funding available for:
What does this mean for business?
The news is undoubtedly moving at a very fast pace and it is impossible to predict where the Brexit negotiations will land. Despite the clear wish of Government that a Brexit deal is agreed, we believe it would be imprudent to abandon ‘no deal’ planning at this stage – whilst the chances of a ‘no deal’ may fluctuate by the day (if not by the hour), the impact of ‘no deal’ remains just as high. These publications by HMRC re-emphasise the importance of being prepared for all eventualities.
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