The Government is self-destructing but the official line is that the UK will leave the EU, with or without an agreement, on 31 October 2019. This will have huge implications for many businesses as we described in our newsletters on 29 August and 12 September 2019.
If the exit from the EU happens without an agreement (no-deal Brexit), many of the arrangements that make life easier when moving goods or people across borders will cease to apply at 11pm on 31 October. This is expected to cause delays at borders as some carriers won’t have the correct paperwork, and it could affect you as follows:
Goods in bags
When people travel abroad carrying small amounts of goods for business use in their bags, such as samples, those items will have to be declared using a new system called “merchandise in baggage” (MiB). The business will need an EOIR number (see our newsletter 29 August) and may have to pay a tariff and VAT on the value of the goods.
Working in Europe
UK staff who work in Switzerland, an EEA or EU country, for less than two years can normally stay within the UK national insurance system by completing a form A1/E101, so they don’t have to pay social security charges in the country where they are posted.
After the UK leaves the EU that co-ordination between the UK and other EU social security systems will end, and local social security charges may be due. The social security arrangements between the UK and the Republic of Ireland won’t change on Brexit.
New customs declarations will be required after the UK exits the EU as we described in our newsletter on 29 August. Businesses can now apply for grants for training staff and/ or for upgrading their IT systems to cope with the new customs and tariff processes.
The grant application process opened on 3 September, but only businesses with a clean tax record are eligible to apply. The business must also find the people who are capable of providing the training in customs procedures, as the Government won’t be providing that expertise.
There are many more issues to address concerning Brexit such as; VAT on imports and electronic services (see our newsletter 12 September 2019), transitional simplified procedures for importers, healthcare for staff who work abroad, and eligibility of EU citizens to work in the UK.
Written by the Tax Advice Network