With around 50 working days until the end of the Brexit transition period, at which point the UK will leave the EU customs union and single market, the government is to urge business leaders to accelerate preparations for an Australia-style exit
HMRC is writing to 200,000 VAT-registered businesses who trade with the EU to set out the new customs and tax rules coming into place and how to deal with them.
The letters explain what businesses need to do to prepare for new processes for moving goods between Great Britain and the EU from 1 January 2021, including making sure they have a UK Economic Operator Registration and Identification (EORI) number, deciding how they will make customs declarations, and checking if their imported goods are eligible for staged import controls.
In a call with business leaders Prime Minister Boris Johnson and Michael Gove, Chancellor of the Duchy of Lancaster, will discuss preparations and ask businesses to step up their efforts to get ready for the changes and opportunities in just over eight weeks.
The call to action comes as the government launches the latest phase of its public information campaign emphasising the increased urgency to prepare for the end of the UK transition period with the strapline ‘Time is running out’.
This follows a clear direction from the Prime Minister that the whole UK must prepare to leave the EU on Australia-style terms based on simple principles of global free trade, after the European Council conclusions last week left us without a basis to continue trade negotiations if there was no fundamental change in the EU’s negotiating position.
As well as checking duties and customs procedures for exporting, businesses are warned that if staff travel to the EU for work purposes they will need to check if they need a visa or work permit and apply if necessary.
Businesses employing overseas nationals will need to prepare for the implementation of the new immigration system. From 1 January 2021, if they want to hire anyone from outside the UK, including from the EU, they must be a Home Office licenced sponsor.
A UK business or organisation that receives personal data from contacts in the EEA may need to take extra steps to ensure that the data can continue to flow legally at the end of the transition period.
Anyone providing services in the EU, must ensure that their qualifications are now recognised by EU regulations to be able to practice or service clients in the EU.
Business Secretary Alok Sharma said: ‘With just 75 days until the end of the transition period, businesses must act now to ensure they are ready for the UK’s new start as an independent trading nation once more.
‘There will be no extension to the transition period, so there is no time to waste.’
Andrew Gray, head of Brexit at PwC, said: ‘Events of the last few days show that there is now a very clear risk that the UK and the EU do not agree a trade deal.
‘Even if talks resume, change is coming in a matter of weeks and organisations must be ready to move people, goods, and data differently from 1s January. ‘Many of the changes will be required, deal or no deal. Whether they’re making light bulbs, certifying organic wine or planning post-Covid business travel, organisations have to tackle what’s currently known and leave a margin to deal with what’s still opaque.
‘There have been a number of false starts and ends throughout the Brexit process but the transition period deadline at the close of this year isn’t one of them.’