Business after Brexit
For the last couple of years, there was uncertainty over the Brexit deal. Well, the confusion is now over as it is here with us. What now? Is it business as usual?
Small to medium-sized businesses comprise the largest share of private sector businesses in the UK. In this round-up, we provide some insight on how your business could be affected and sequent response.
How does Brexit affect your business?
In a large spectrum, businesses have had to adjust the following areas:
- Imports and exports now attract VAT payments, refund claims and potentially custom and excise duty for items outside the free trade agreement.
- State aid which includes grants and block exemptions
- Fulfilling transport and logistics.
- Different terms of importing and exporting goods from Northern Ireland.
- Presences of copyright, trademarks and patent rights.
- New environmental, industrial standards.
- The transfer of personal data between the EU and UK covered by the GDPR.
- There is mutual recognition of validations and relevant licenses like audits and banking licenses.
Unsurprisingly, the new customs requirements for UK-EU trade require businesses to achieve an Authorised Economic Operator (AEO) status.
It comes in two forms:
- Customs simplifications
- Operator security and safety.
On the same, HMRC considered the following factors before awarding AEO status:
A good tax and customs record over the past three years is vital. How you dealt with errors is also a determining factor.
Customs record keeping
You will have to produce full audit trails for logistics using a clear flow of goods in document form. A commercial record-keeping paper trail is apt for any business.
Company assets should be on the positive scale as HMRC will need to see full management accounts and projections. You have to provide a letter of conformity from your bank. It is one of the areas where Ernest & Co Accountants come in handy as we can help with the projections and management accounts.
Competence and qualifications
In line with other aspects, you have to prove that you are competent in custom matters for the past three years or less if your business is new. We can help you keep your customs matters in check through the Brexit trends.
We hope you find this article helpful. To learn more, we are a phone call away.