Brexit may have been and gone, but there is still plenty of good advice out there to guide you through the new trading environment. Here’s a simple checklist:
Delay VAT accounting
Businesses can apply for postponed VAT accounting. This allows firms to defer paying VAT upon importation of goods. Instead, import VAT will be paid via the usual VAT return.
Apply for a Duty Deferment Account
This defers import duty payments. Duty can be paid once a month, rather than every time goods are imported. Currently, HMRC have waived the need to put up a Customs Comprehensive Guarantee so if a business qualifies, HMRC will grant a £10,000 credit limit per month.
Check commodity codes
Businesses must ensure that they are using the correct commodity code for their goods. If incorrect codes are used this could cause delays and firms may face financial or criminal penalties.
Check duties payable
Firms bringing goods into the UK should check whether import duty may be payable on goods after 1 January if importing from the EU.
Check the regulations for trading with Northern Ireland
If trading with Northern Ireland, firms must have an XI EORI number; they will not be a
Check on an EORI number
Every business wanting to trade with the EU will need an EORI number that starts with GB. As with Northern Ireland, trade cannot be done with the EU without it. Firms won’t usually need an EORI number if they only provide services or move goods between Northern Ireland and Ireland. Note that it can take a week to get a number.
Check current trade agreements
Firms must check the detail of the trade agreements with each country they are trading with to ensure goods can be imported using the correct procedures. This must be done from within the UK; a UK company overseas should contact the Department for International Trade.
Adapted from an article by Adam Bernstein and Businesswest.co.uk in Credit Management, Jan/Feb 2021