3 things accountants should know about Brexit

For months the nations’ attention has been riveted to the health pandemic. Now, the Government is launching a major publicity drive to remind businesses that – on top of everything else – they need to be actively preparing for when the UK leaves the EU after 31 December 20.

Here are three things you should know about our exit from the EU.

1. Be aware of the information campaign

This week the government has launched a new campaign to put EU departure is back on the agenda. Under the slogan “Check, Change, Go”, it will direct people and businesses to a checker tool to identify relevant actions to prepare for the end of the transition period on 31 December 2020.

Next steps

• Try out the checker tool
• Advise customers to check how they should prepare

2. Check customs procedures

Front of mind for businesses will be ensuring they are ready to export or import from/to the EU, for example by getting an EU EORI number or registering with the relevant Customs Authority.

One option open to business is to hire a person or business to deal with customs matters. This could be a freight forwarder, customs agent or broker, or a fast parcel operator.

However, from 1 January 2021 such representatives will have to be established in Great Britain or Northern Ireland.

The Government has also released guidance about a streamlined way to record and declare imports during the first six months of 2021.

Next steps

• Check: Get someone to deal with customs for you.
• Check: Declaring goods brought into Great Britain from the EU.
• Downloadable guide for imports.
• Check: Declaring goods brought into Great Britain from the EU from 1 January 2021.
• Downloadable guide for exports.

3. Check trade tariffs

After 31 December 2020, businesses may need to pay a tariff on imported goods. They will also need to comply with rules and tax and duty rates for exporting to the rest of the world.

In May, the Government published the UK Global Tariff (UKGT), which will replace the EU’s Common External Tariff on 1 January 2021.

Next steps

• Check if you need to pay a tariff on imported goods
• Check the rules, tax and duty rates for exporting

AAT Brexit guidance coming soon

With fewer than six months to go, businesses need to start preparing seriously for life after the end of the transition period.

AAT will be publishing a new guide very soon to prepare members and their employers and clients.

David Nunn is a former Content Manager at AAT.