BREXIT

Practical accountancy with Allchurch & Co.

Brexit may not have been at the forefront of Business owners minds this year, however it is happening at the end of this year Coronavirus or no Coronavirus!!

The UK formally left the EU on 31st January 2020, at which point a transition period began. This will end on 31st December 2020.

We thought it would be useful for us to bring to your attention some key areas that you should be considering in your business to pre-pare for the imminent exit from the European Union.

Businesses should already be in the process of discovering how the end of the transition period will impact them in order to revise exist-ing processes and plan any necessary changes.

A Brexit Impact assessment is a good place to start, and below we have listed some quest-ions to consider when doing so.

Employment and services

  • How is your workforce affected?
  • Do you employ any EU citizens, in the UK or in the EU, or do you plan to?
  • Does your business rely on any specialist or service located in the EU – even if you ordinarily communicate with a UK branch of the business?
  • Do any of your staff need to travel to EU countries?
  • Does your business have any European trade union obligations?

Operating standards

  • Do any standards govern the work you do, such as European EN standards?

Import/export and logistics

  • Does your business import or export goods to or from the EU?
  • Do you use an agent or utilise license schemes?
  • Do you or any of your suppliers temporarily store goods in a warehouse based in the EU, even if they’re manufactured elsewhere (such as China)?
  • Do you work with fulfilment agencies?

Taxes and money

  • Is your business VAT registered or do you operate under the MOSS agreement?
  • Does your business hold money in EU financial institutions, or use any other financial instrument located outside the UK?
  • Does your business rely on funding or grants that comes from the EU? (Notably, even some funding that appears to come from the UK government is often backed by the EU.)

Manufacturing

  • Does your business own any patents, trade-marks or registered copyrights?
  • Does your company manufacture products that must certify to EU safety, security or ecological standards?

Information technology

  • Is any of your data hosted in an EU country (including cloud storage)?
  • Do any employees travelling within the EU have mobile phone coverage for both data and calls?

Data

  • Do you hold personal data about people based in the EU on UK servers?

Professional qualifications

  • Do you provide any services that are restricted to people holding a relevant qualification?

Miscellaneous

  • Do you dispatch goods or documentation to the EU via postal or courier services?

Make sure you are ready!

If you sell goods to the EU you must prepare for new customs procedures. Visit GOV.UK to check duties and customs procedures for exporting your goods worldwide from 1st January 2021.

If you travel to the EU for work purposes you will need to check if you need a visa or work permit and apply if necessary.

If you employ overseas nationals you will need to prepare your business for the implementation of the new immigration system. From 1st January 2021, if you want to hire anyone from outside the UK, including from the EU, you must be a Home Office licenced sponsor.

If you are a UK business or organisation that receives personal data from contacts in the EEA, you may need to take extra steps to ensure that the data can continue to flow legally at the end of the transition period.

If you provide services in the EU, you must ensure that your qualifications are now recognised by EU regulations to be able to practice or service clients in the EU.

 

Businesses can get a personalised summary of the actions they need to take by using the simple tool on:

www.gov.uk/transition-check/questions

Allchurch & Co – Chartered Accountants

www.allchurchco.com / 07825 232218

 

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