Your future relationship with the EU as a business

eu flag as a jigsaw with one piece missing that is the union jack flag

Now that Britain has left the EU as of the 31st January, is your business putting plans in place to deal with any additional paperwork and regulations that are required? Did you also know you may be able to apply for grant funding to help prepare?

Britain has currently entered into a transition period that will last until 31 December 2020. There will be no changes to the terms of trade with the EU or the rest of the world during this time. However, from 1 January 2021, the way businesses trade with the EU will change. You will need to prepare for life outside the EU, including new customs arrangements.

 

Changes to custom arrangements

If you are a VAT registered business in the UK who may import and export between the UK and the EU, HMRC will have contacted you last month to explain some of the actions you need to take to prepare for changes to customs arrangements after the transition period, including:

  • making sure they have a UK Economic Operator Registration and Identification (EORI) number
  • preparing to make customs declarations by deciding if they want to use a third party such as a customs agent or make declarations themselves

You can view a copy of this update on the gov.uk website here.

 

Grant funding

To help prepare businesses for completing customs declarations, the deadline to apply for at least £7.5 million of grant funding has now been extended to 31 January 2021. Around £18.5 million of grant funding has been applied for since September 2019.

The extension will allow more businesses to benefit from the remaining funding to increase their capacity for dealing with customs declarations with training, IT and staff.

Applications will close on 31 January 2021, or earlier if funding is fully allocated. HMRC has seen an increasing number of applications, so interested businesses are being encouraged to apply soon.

Businesses that want to apply for funding should not contact HMRC but can apply online. Find out more information about how to apply for the funding on the gov.uk website here.

 

Check what you need to do

If you’re not sure whether your company needs to do anything as a result of Britain leaving the EU, then the gov.uk website has a tool you can use to check.

Check how to get ready for the new rules in 2021 here.

 

Further information

If you found this information useful, you may also want to check out the following:

 

MRA specialise in business solutions and are Life Centred Business Consultants based in East Sussex we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells

 

Sources:

https://www.gov.uk/government/publications/agent-update-issue-76

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

https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations

https://www.gov.uk/transition-check