Brexit is coming!

Never mind Christmas - Brexit is now literally days away! At the end of 2020 we will not only say goodbye to the 'annus horribilis' that COVID-19 has created, but also to our relationship with Europe.

In the pandemic panic Brexit has been pushed into the back seat, but that doesn't mean you can pretend it isn't happening. There will be changes.

From a business owner's perspective there are two big issues that are likely to affect you directly, but only if you fall into either of these categories:

  1. You employ people who are not British nationals
  2. You import or export goods

All staff who are not UK nationals will require a visa to enable them to stay in the UK and work. This means any EU national currently working for you must have applied for the right to remain in the UK. 

While this is a personal issue, as an employer you have a duty of care to ensure that every member of staff has a right to work in the UK post Brexit. Their existing employment and tax records will contribute to them being able to successfully obtain the necessary visa / status.

If you import or export goods to and from Europe, the processes will change on 1st January. 

Effectively the rules applying to goods imported from outside Europe will now apply to any country outside the UK. You can do this yourself, but it's probably more efficient to employ a freight forwarder, customs agent or a courier.

Consider that, if import duty has to be paid at the point of arrival in the UK, this may have an impact on your cashflow.

You may need a licence or certificate to export goods - and you need to check if there are any restrictions in the country you're exporting to. You'll also need to check if there is a trade agreement in place, as that could affect what you need to do.

As an exporter you should already have received an EORI number. To be current your EORI number should start with GB, if your current EORI number doesn't, you'll need to apply for a new one. Without this the only country you can export to outside the UK is Ireland - and only then if your goods are being exported from Northern Ireland.

You may also need to be registered for VAT. To find out more about export regulations post Brexit check the government guide.

Short-term the changes will be operational, but it's likely that there will be changes to the reporting system for business accounts over the next few years. Watch this space!