Brexit Support
The Brexit transition ends on 31st December. There are new rules for businesses and citizens from 1st January 2021.
EORI number
Businesses who import or export goods, and are trading with the EU post Brexit, will need to apply for an EORI (Economic Operators Registration and Identification) number. Your 12-digit EORI will enable you to move goods between Great Britain and the EU, and without one you will incur increased costs and delays to your business.
The short application process should take just 15 minutes using the link below.
Please note: Businesses that are service based may not need an EORI number.
Customs Agent
Ensuring that you complete your customs declaration and that you pay the right amount of duty is really important. Whether you’re completing the documentation yourself or outsourcing it to an agent it is still your responsibility to ensure that is it completed correctly, you pay the correct duty and you can release your goods. Any agents that you use must be based in the UK.
Examples of agents who can handle customs are; freight forwarders, brokers and fast parcel operators. See a full list below.
Please note: Revenue and Customs requires all businesses to keep records and accounts for at least four years for customs.
Trading Terms
Ensure that you have set up your trading terms with your customers as early as possible.
Options to be considered are:
- Delivery Duty Paid (DDP) method – the seller assumes all the responsibility until the buyer takes control, a VAT registration in the country you export to may be required.
- Ex works method – the buyer picks up the goods from the seller and therefore assumes the responsibility. This would mean that the EU customer would need an EORI number.
Imported Goods - Tariffs
From 1 January 2021, the UK will apply a UK-specific tariff to imported goods. This UK Global Tariff (UKGT) will replace the EU’s Common External Tariff, which applies until 31 December 2020. It is important when setting sales prices that duty rates are obtained to ensure margins are maintained.
Controlled Goods
To avoid fines or delays on the goods that you import from the EU, it is essential to check the appropriate declarations needed. The below link will give you guidance on the list of goods that are controlled.
Postponed Accounting
VAT is levied on imports from the EU. If you want to ease cash flow by deferring payment of excise duty, customs duty and import VAT for up to 45 days and pay via direct debit you can apply for a Duty Deferment Account (DDA) from Revenue & Customs.
The link below offers more guidance on who is eligible and how to apply for the deferment.
Key Euro Payments System
The UK will remain part of a key euro payments system. At the moment, UK-based payment service providers have access to central payments infrastructure such as the Single Euro Payments Area (SEPA), which allows customers to make cross-border payments at a low cost, or sometimes for free.
In March 2019, the UK’s application to remain in the geographical scope of SEPA schemes was approved. This means that euro SEPA payments can continue to be made through existing arrangements, regardless of what happens with the ongoing negotiations over a trade deal.
Data & GDPR
To date, there has been no change to the UK’s data protection standards. EU data protection laws, including the General Data Protection Regulation (GDPR), have continued to apply throughout the transition period alongside the Data Protection Act 2018. There is no requirement for UK data controllers or processors to appoint EU-based representatives for the duration of the transition period.
From 1 January 2021, GDPR will be retained in UK law and will continue to be read alongside the Data Protection Act 2018. Technical amendments will be made to ensure it can continue to function in UK law.
Financial Help
There is a customs intermediary grant available for businesses to help deal with extra customs declarations. The grant can be used to recruit people, train employees and deal with any IT issues.
The scheme will close at the end of June next year.
General Export Facility
This is a new source of finance applicable to businesses that export goods.
Travelling into the UK
Personal
HMRC has developed an online declaration service to help travellers, with goods for personal use, check taxes and duties that may be due, declare goods and pay nay tax or duty due. They can do this from 72 hours before arrival in GB. The new Online Service for Passengers will be available from 1 January 2021 below.
Business
Between GB and EU, travellers bringing in goods for use in their business (also called Merchandise in Baggage) below the value of £1,500 and 1,000kg in weight, not classed as excise or controlled goods:
- Travellers make a simple online declaration to HMRC and pay duty or tax up to five working days before arriving in GB. Full details are on gov.uk/hmrc/goods-in-baggage.
- Travellers can also declare goods and pay duty and tax due using the red channel or red phone where these exist, in the same way as travellers from non-EU countries currently do.
For goods above £1,500 in value or 1,000kg in weight, or exise/controlled goods of any value/weight:
- Travellers or their agents submit a full electronic customs declaration to HMRC before arriving in GB. Full details are on gov.uk/hmrc/goods-in-baggage.
If you travel to the EU for work from next year, you may need a visa or work permit. You’ll also need to take on some additional actions involving insurance and, in some sectors (particularly in legal services), confirm that you have a recognised qualification.
Cash
Those travelling into GB from the EU with £10,000 or more in cash will need to make a declaration.
A declaration should be made online, where you’ll find more information about cash controls. Please note, cash includes notes and coins, bearer bonds, banker’s drafts and cheques.
Travelling out of the UK
Personal
Travellers departing the UK will be able to buy duty free excise goods once they have passed security controls at airports, ports, and international rail terminals on the same basis as currently applies to passengers travelling to non-EU destinations. This means those travelling from GB won’t have to pay UK tax and excise duties on alcohol and tobacco they take with them when they leave.
Business
Travellers exporting out goods intended for trade or business use (also called Merchandise in Baggage) below the value of £1,500 and 1,000kg in weight, not classed as excise or controlled goods:
- Travellers make a simple online declaration to HMRC and pay duty or tax. Full details are on gov.uk/hmrc/goods-in-baggage.
- Travellers can also declare goods and pay duty and tax due using the red channel or red phone where these exist, in the same way as travellers from non-EU countries currently do.
For goods above £1,500 in value or 1,000kg in weight, or exise/controlled goods of any value/weight:
- Travellers or their agents submit a full electronic customs declaration to HMRC. Full details are on gov.uk/hmrc/goods-in-baggage.
Cash
Those travelling out of GB with £10,000 or more in cash will need to make a declaration.
A declaration should be made online, where you’ll find more information about cash controls. Please note, cash includes notes and coins, bearer bonds, banker’s drafts and cheques.
