HMRC have been busy sending letters to all VAT registered businesses within Great Britain (GB) who trade with the EU and/or the rest of the world. The letters highlight the actions businesses need to take to continue trading with the EU from 1 January 2021. In case you haven’t seen or received a copy of the letter, there are important steps you will need to take to ensure your business is ready for these changes.
The UK is set to leave the EU’s Single Market and Customs Union when the Brexit transition period ends on 31 December 2020. Whilst the import processes and customs declarations for non-controlled goods can be delayed until 30 June 2021, the UK will operate a full external border with the EU when it comes to importing and exporting goods which are categorised as ‘controlled’ from the beginning of 2021.
In preparation for this, HMRC has sent letters to all VAT-registered businesses explaining what they need to do to prepare for the new processes coming in to force from 1 January 2021.
This link will help guide you through those changes: https://www.gov.uk/government/publications/letters-to-businesses-about-new-trade-arrangements-with-the-eu-from-1-january-2021
In summary VAT registered businesses will need to:
If you are not sure what you need to do, please get in touch with us to discuss the most appropriate actions for your business. www.claritastax.co.uk
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