The Government is finally starting to take action to minimise the disruption of a ‘hard’ Brexit on cross-border trade with the EU.
Over the next two weeks businesses registered for VAT will be automatically given an Economic Operators Registration and Identification number to assist with new cross-border customs procedures. This action is being taken following HMRC only previously receiving around 72,000 applications from businesses for the registration and number.
This step should now see a further 88,000 (estimated) businesses becoming registered ahead of a ‘hard’ Brexit.
UK businesses that are not registered will find it difficult to immediately continue with cross-border trade in a ‘hard’ Brexit scenario.
Those businesses not paying VAT, but trading cross border, will still need to apply - the Government estimates the number of these businesses in the tens of thousands.
BLM is working with corporates and owner managed businesses to ensure they are ready to make the most of Brexit - no matter what the eventual outcome - by putting the right contingency plans in place.
Please contact partner Jonathan Askin for a confidential chat if the above impacts on your business or you need assistance with Brexit planning.