HMRC urging businesses to prepare for potential no-deal Brexit

Ahead of Britain’s upcoming departure from the European Union (EU), HM Revenue & Customs (HMRC) is warning businesses about the necessary steps they need to take to prepare for the unlikely event of a no-deal Brexit.

The Government is currently in the process of negotiating with the EU in a bid to reach a withdrawal agreement that will ensure a smooth departure on 29 March next year.

The deal will need to be ratified by both the UK and EU Parliaments and until this happens the Government will continue to plan for both deal and no deal scenarios, which is why businesses are being urged to do the same.

Earlier this year HMRC sent an initial warning to businesses who import or export goods within the EU, warning that should we fail to reach a deal, there would be immediate changes about the way that businesses trade with the EU.

In recent days, HMRC has prepared a second letter that will be sent to those businesses, detailing the three steps that businesses should take now to prepare for the possibility of no deal.

The first of these steps is to register for a UK Economic Operator Registration and Identification (EORI) number at https://goo.gl/paAobk.

Businesses will need an EORI number to continue to import or export goods with the EU after 29 March 2019, should the UK leave without a deal. They will also need the number to apply for upcoming authorisations that will help to make the customs processes easier for businesses.

The second step that businesses will be advised to take is to make a decision as to whether or not to hire an agent to make import/export declarations, or if the business would like to make these declarations themselves through software that interacts with HMRC systems.

Whatever the decision it is encouraged that businesses take steps to prepare by either contacting an agent to find out what information they require or contacting a software provider to ensure their product meets the requirements of the business affected.

The final action HMRC is encouraging businesses to take is to contact the organisation that moves their goods to find out if any additional information needs to be supplied to allow that organisation to make the correct safety and security declarations for the goods.

More information on these changes can be found at https://goo.gl/EfgXXS

If your business is likely to be affected by anything mentioned in the article above, or you are unsure about the actions required, then it is important to seek specialist advice. Contact us today to find out how we can help you.

Posted in Brexit, Business, Business Advice, Business Blog, HMRC, Latest Business News, SME, SMEs, SMEs / Business.