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Category Archives: Brexit

Getting your business ready for no-deal Brexit if you don’t pay VAT – EORI number registration

23 Aug

HMRC state UK businesses need an EORI number to trade with Europe after a no-deal Brexit.

I received this email from HMRC yesterday and I suspect I only received it because I signed up for their update emails (none of the others of which have been useful so far). I am just putting it here for people to see – I’ve been through the process and got my number (but when they give it to you, copy and paste the page into your own records otherwise you have to go back in and search for it once you’ve been approved). You need a Government Gateway login to access it.

This is not legal or business advice, I am merely sharing what I’ve been sent in case it helps any other sole traders who are not VAT-registered.

Dear Liz,

The Government has said that the UK will be leaving the EU on 31 October whatever the circumstances.

Leaving the EU without a deal means there will be immediate changes to the way UK businesses trade with the EU that may impact your business.

  • UK businesses will have to apply customs, excise and VAT processes to goods sold into the EU (these are the same rules that already apply for goods and services traded outside of the EU).
  • Trading partners in the EU will have to apply customs, excise and VAT processes to trade they carry out with you, in the same way that they do for goods and services traded from outside of the EU.

HMRC is helping businesses get ready for Brexit by automatically issuing them with a UK EORI (Economic Operator Registration and Identification) number. We have written to more than 88,000 VAT registered companies to let them know the UK EORI number they’ve been assigned. Businesses will not be able to move goods in and out of the UK without one.

If your business is not VAT-registered, you will still need to apply now for a UK EORI. HMRC cannot give you this automatically.

You can check the next steps you need to take to ensure that your business is ready for Brexit using our trader checklist.

We will continue to provide you with the latest guidance and support to help you prepare your business for the UK leaving the EU.

You can sign up for HMRC emails here.

You can register for Government Gateway here.

Not legal advice. Not tax advice. Sharing what I’ve been sent.

 
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Posted by on August 23, 2019 in Brexit, Business

 

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When you see businesses being criticised for not being prepared for Brexit, this is why some of us are not prepared for Brexit

28 Mar

So having had lots of emails telling me how to export goods to the EU in the event of a no-deal Brexit, I tried once again to find out what happens to tax arrangements for people who export services. I’m by no means the only UK person in this situation. Please note I do not expect them to have all the answers, however it would be nice to know if this issue has been discussed, what to do if there’s no deal, etc. I think I am right to want to know how to conduct my business after Brexit, especially given the government, etc. reports detailing the horror of companies NOT being prepared! (Financial Times reports, for example)

Here is my somewhat Kafkaesque conversation over live chat with a representative of HMRC (I checked and it is OK to share this, see below).

[Note, I seem rude to start without saying hello but you’re told to enter your question first!]

LIZ DEXTER: Are the reciprocal tax arrangements between the EU and UK going to continue?
Additional detail: I provide services to EU clients. Currently, I only need state I pay self-assessment taxes to HMRC in the UK, or occasionally need to provide my UTR to prove this, in order for companies to pay me my full invoice and not tax me at source. However, some countries insist on further
paperwork (e.g. a client in Lithuania asked me to get an HMRC employee to sign a letter for them stating I paid tax in the UK). Is this situation being
monitored over the time of Brexit and how can I find out what’s happening?

HMRC: Good afternoon

LIZ DEXTER: Note: I have signed up for all the email alerts, but they are solely about companies that export and import goods, not services. There’s nothing I can find having read the WTO rules which we revert to with a no-deal Brexit. And hello.

HMRC: There is no further information I can give you regarding leaving the EU other than what’s available on gov.uk

LIZ DEXTER: There’s no information on gov.uk about this specific situation that I can find. Can you point me towards any information for exporters of services, not goods, please?
The reason I ask this is that the Ease of Doing Business if I have to get an HMRC employee to sign a paper for every client I had will badly adversely affect my business (and the tax I’ll pay in the UK!).

HMRC: Give me a moment whilst a check my guidance.

LIZ DEXTER: OK thank you.

HMRC: I don’t have any guidance I can give you. It just tells me to direct you to guidance published on gov.uk

LIZ DEXTER: Which doesn’t have anything to do with exporting services at all. OK it’s not your fault but can you please feed back that there are so many people in my position, I have EU customers asking me how they’re going to deal with me post-Brexit, whether they can continue to use my services. It’s embarrassing and very stressful. Or HOW they can continue to use my services.

LIZ DEXTER: Is it permissible to share my download of this chat with other self-employed people or my clients?

HMRC: I will feed that back. Sorry but at this time we don’t have the information you require.

HMRC: Yes that’s fine.

LIZ DEXTER:  Thank you. And I appreciate your help and that
you’ve done all you can.

REFERENCE: Record of your HMRC webchat [url redacted, can be provided upon request]

 
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Posted by on March 28, 2019 in Brexit, Business

 

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