Brexit and vat how will it affect your company

The UK will no longer be a member of the Customs Union when the Brexit transition period ended on December 31, 2020.

So, what does all of this mean? In summary, all items leaving the UK on their way to Europe will be classified as exports, and vice versa. Furthermore, when items reach the border, import VAT and Customs Duty must be paid.

What do you need in place for your company?

EORI numbers are currently required for EU transactions and will continue to be required for imports and exports. However, following Brexit, separate EORI numbers will be necessary for UK based outsourcing and the EU.

Your company must also check its Commodity Codes, which govern how much duty is paid on a specific product. Each import or export declaration you create must have a different code for each item.

You’ll need to ensure your certifications fall within the new rules and that your goods will pass EU regulatory checks – particularly important with products of animal origin. These will require an export health certificate and entry to the EU through a designated Border Inspection Post.

• A copy of your export permits
• A reference number for a movement (this would be in the event of a no-deal Brexit)
• A movement reference number, often known as an LRN (If the export falls under the Common Transit Convention)
• If you are temporarily transporting goods out of the UK, inclusive of outsourced accounting services, you will need an ATA Carnet document.
• If transferring items in a sealed load compartment, a TiR Cabinet document is required.

You must also select how you will charge VAT to your EU customers. Following Brexit, exporting things worth more than €22 to the EU will need the payment of import VAT and tax on items worth more than €150. And, most importantly, you’ll need to plan for impending duty and VAT payments, as well as how to manage these charges best.

Refunds of VAT

The HMRC has indicated that access to the EU VAT refund system will be terminated on March 31, 2021. Firms in the UK (and those in the EU) will have access to the old system until this date to see and amend any claims relating to VAT incurred before Brexit. Any VAT claims incurred after this date must be made manually and individually to the relevant tax authorities.

Business Opportunities and Risks in the United Kingdom

Smaller firms will face hurdles in preparing for Brexit because they lack the scale and infrastructure of larger organisations, incurring more expenses and being more vulnerable to dangers.

It may be difficult to identify a silver lining with all of Brexit’s negative headlines and concerns. However, the formation of new trade links with both global and emerging markets might be viewed as an opportunity to enter a new era of British business and trade and a shift toward the future of export and import.

VAT is one of the most essential and intricate tax systems placed on businesses, and as we’ve seen, Brexit is exacerbating the situation. FinConcile outsourcing service group specialises in VAT guidance and provides a specialised advisory service.

Planning approval -If you want to conduct a business from your house, you may need planning clearance. Depending on the kinds and type of business, you may need to apply for a licence. As a result, contacting the local authority for advice is a necessary step before proceeding.

Mortgage -Creating a garden office and using a portion of your house for commercial purposes may have an impact on your mortgage.

What services does FinConcile provide?

FinConcile works with accounting companies in the United Kingdom to help them develop by improving operational efficiency and addressing scaling difficulties with the help of an experienced workforce. Their solutions allow companies to expand while maintaining strong profit margins and productivity. Due to excessive workloads, the skilled staff takes over accounting outsourcing firms’ finance and accounting duties, making it difficult to transfer their focus from administrative responsibilities.