How Brexit affects your business

At the end of December 2020 the UK enters a brave new world, it seems appropriate to see How Brexit affects your BusinessWe have lots of questions about Business and Brexit, some answers we know, some answers we don't. In this weeks podcast we share some answers, advice and tips.What is Brexit?Firstly, Brexit is a fusion of the words “British” and “exit”, referring to the U.K.'s decision to leave the European Union (EU).The U.K. is now in a transition period to negotiate a new relationship with the EU. The UK has no say in EU policy, but will still need to abide by EU rules.There will be new rules from January 1st. 2021.This podcast is about How Brexit affects your Business.IntroductionUp until 11 pm on the 31st December 2020 we are still part of the EU. Though the European union has already removed us as member on their websiteFrom the 1st January 2021 we will be known as a third country, all countries outside of the UK will be known as the Rest of the World. General Data Protection Regulation (GDPR)The GDPR (General Data Protection Regulation)is about the rules relating to how we collect and process personal data. The Data Protection Act 2018 is the UKs implementation of GDPR. Listen to find out what happens from 1st January 2021 ? What steps can you take. Apart from our podcast, check out The ICO, Information Commissioner’s Office.Listen to learn moreEU settlement schemeYour business may have EU/EEA/Swiss nationals living in the UK by 31 December 2020. What happens if you wish to keep them on?Listen to learn moreFrom the 1st January 2021 the UK will become a separate customs territory from the EU. This means that all imports, and exports of goods to and from the EU will become subject to customs procedures. This will refer to EU goods imported into the UK and UK goods exported to the EU.Any “deal” will affect the duty rate on eligible goods. Your import and export declarations will still need to be made.Customs controlsFrom 1 January 2021 customs controls will apply:If your business imports or exports outside of the UK you will have to complete UK and EU customs declarations.Work out the relevant customs duties Should you do this yourself, or use a third party like a freight forwarder . What’s the business case, is DIY better than using an agency.Listen to find out moreFor example, if you DIY you will need to get access to HMRC systems and invest in software.After 31 December 2020, the UK will be a third country, any goods sent to Europe will be classified as exports, any goods coming in from Europe will be classified as imports. Prior to the 31 December 2020 those movement of goods would have been seen as EU would be intra-EU acquisition.Economic Operators Registration and Identification number (EORI)Listen to find out what an EORI is, why you need one and how you get hold of one – spoiler alert, if you are importing then you need one. Any economic operator established in the customs territory of the Union needs, for customs purposes, an EORI numberAny economic operator established in the customs territory of the Union needs, for customs purposes, an EORI number.UK trade tariffs from 1 January 2021Whatever the outcome of the trade talks there will be duties to pay. Your business will be usingThe UK Global Tariff rates.Listen to find out this affects your business, how to apply it and paying it. Do you need pay on import, can it be delayed, listen to find out moreThere are new rules for duty deferment that will apply in Great Britain (England, Scotland, and Wales) from 1 January 2021. Most traders will not need a financial guarantee with their duty deferment account. VATValue Added Tax (VAT)VAT is a Tax that is levied on goods and services provided by VAT registered businesses in the United Kingdom, to other VAT registered business and/or public.The UK introduced VAT when it joined the European Economic Community (EEC) in 1973.Will VAT continue after Brexit?In theory the UK could abolish VAT after Brexit. In practice, very unlikely. It has about much chance as being abolished as discovering Elvis works at the check-out isle of Tescos.Listen to find out why and what changes to VAT are envisaged, how it will be paid andChanges to Vat after BrexitThe big change after Brexit will be how VAT is charged on trade with the remaining 27 member states. How big that change will be is all based on the final negotiated outcome.What NextIn conclusion, when Brexit happens, we will leave with a 47 year membership behind us. The EU has been a major part of business life, leaving is a big deal.  Make yourself comfortable. Sit back and listenMost importantly, subscribe so you do not miss an episode. In This EpisodeUnderstanding what Brexit isAppreciating how the GDPR will change for the UK when Brexit happens.Hearing about the change in customs procedures and tariffsThe cash flow impact, with duty, VAT and tariffsDeveloping your own Numbers confidence and decisionsTake more control of your numbers to help make you money, survive and thriveLinkshttps://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbershttps://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zinshttps://www.stitcher.com/podcast/proactiveresolutionss-podcasthttps://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/