Business Processes To Continue Trading With The EU In 2021

HMRC has written to businesses around the UK, detailing just what they need to do in order to continue moving goods between this country and the EU from January 1st 2021, which is when the UK will no longer be part of the European single market and customs union.

The letter urges companies to ensure that they have a UK economic operator registration and identification number, as well as deciding how they intend to make customs declarations and checking to see if the goods they wish to import are eligible for staged import controls.

New border controls will be introduced in stages and customs declarations for goods that aren’t controlled can be delayed until June 30th next year.

You are also being advised to check if import VAT will be due at the border. This will not be necessary if goods do not exceed £135 in value, with the only exceptions excise goods and gifts.

Those businesses that move goods between Great Britain and Northern Ireland, or which bring goods into Northern Ireland from outside the UK, are being urged to sign up for the New Trader Support Service, which will handle all new processes under the Northern Ireland Protocol from January 1st next year.

It could also be worth signing up to HMRC’s free email update service so you can stay abreast of all the latest EU transition information.

The UK will either leave the single market with an EU-UK deal in place, or without one – a no-deal Brexit. At this point, the UK will maintain participation in the SEPA geographic scope, enabling businesses to make euro transfers to participating countries using a single bank account and a standard set of rules.

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Published On: September 21, 2020

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