Brexit Transition Period

On 31st January 2020, the leaders of the UK and European Union signed the Withdrawal Agreement to leave the EU. However, the UK is now in the transition or implementation period during which time it is ‘business as usual’, as the UK is covered by EU rules until the end of the year. The UK aims to have agreed a deal on future arrangements with the EU and the rest of the world by 2021.

Her Majesty’s Revenue and Customers (HMRC) have contacted businesses in the UK who may import and export between the UK and the EU to explain what they can do to prepare for changes to customs arrangements after the UK has left the EU.

No change during the implementation period

Between 1st February and 31st December 2020 there will be an implementation period and HMRC has confirmed that during this time there will be no changes to the terms of trade with the EU or the rest of the world.

However, from 1st January 2021, the way businesses trade with the EU will change. HMRC is reminding businesses that they should prepare for life outside the EU, including ensuring that they are ready for customers arrangements.

HMRC is advising businesses to make sure they have a UK Economic Operator Registration and Identification (EORI) number as well as prepare to make customs declarations.

HMRC has posted letters to 220,000 VAT registered businesses advising them on the current position.*

At Harvey, Telford and Bates, we will advise you on the progress of negotiations and what these will mean for your business.

Samantha Bennett FCCA, Harvey, Telford and Bates comments on the transition period:

“For businesses this Brexit transition period is crucial in preparing for the new arrangements that will inevitably come from the UK leaving the EU. At Harvey, Telford and Bates, we are on-hand to advise you on the progress of negotiations and what these will mean for your business.”

To find out more on how Harvey, Telford and Bates can help you, get in touch with a member of our team today. Call us on 01743 462604 or email us at hello@htbaccountants.co.uk to schedule a meeting.

* https://www.gov.uk/government/publications/letters-to-businesses-about-trade-arrangements-after-the-uk-has-left-the-eu

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