The end of transition is nigh

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44(0)330 024 3200 and discover how we can help you.

Despite its best efforts to stop everything, Covid-19 has not managed to stop Brexit. With the transition period ending in 51 days, there is still much to do if you are a UK business trading with anyone outside of the UK. We want to help you prepare and will send out regular “Countdown to customs” updates which bring you the latest guidance and key reminders of what you need to do to get ready.

Declarations are here to stay with or without a trade deal

If we reach a trade deal before 31 December then the tariffs may change, but the need to do declarations won’t. So making sure you are geared up and ready for them is vital. With an estimated 200 million extra declarations needed and not enough resources to go round, start making arrangements now so you are not at the back of a very long queue. Not sure where to start? Find your next steps with our interactive imports and exports checkers and downloadable checklists. We can also help with our new customs declarations service.

Does your EORI number start with ‘GB’?

If not, you will need to apply for a new one in order to move goods in and out of the UK from 1 January 2021. You can do this now by visiting https://www.gov.uk/eori and logging into your government gateway account.

Supplying services to the EU?

For those providing business to business knowledge services such as consultancy or accountancy, nothing much will change. However, if you supply telephone services, apps, games, other downloads, broadcasting services to consumers there will be a change. From 1st January, you won’t be able to submit your Mini One Stop Shop (MOSS) VAT return through HMRC and will need to register for MOSS in a EU country. Furthermore, for the services above supplied and the hire of goods to business customers, there may be changes due to the “Use and Enjoyment” rules in the various EU Member States. Register for MOSS between 1st and the 12th January.

Doing business with Norway?

You may need to register for VAT and engage a tax representative over there in order to continue trading. Contact us as we can advise on the rules and also put you in touch with local contacts via our membership of TGS-Global’s international network of professionals.

Are you using the best Incoterms for you?

Incoterms are the international shipping rules that govern who has responsibility for each part of the movement of goods. What worked pre-Brexit, may not be the best for your business in January. Now is a good time to review your Incoterms and map out your supply chains to work out the most convenient and least costly arrangements for you. This is particularly important if you are using EXW (Ex Works) or DDP (Delivered Duty Paid) Incoterms as they are often the most problematic. The International Chamber of Commerce’s free wallchart or Incoterms Rule Book will help you understand the costs and responsibilities of each one.

To book a free consultation with our customs experts call +44(0)330 024 3200 or hi@hhllp.co.uk.

Do you need extra information?
Ruth Corkin

Ruth has been involved with VAT for over 30 years. She started her VAT career as a Customs and Excise Officer in Essex and then moved into consultancy with a variety of well-known accountancy firms. She is well known in the VAT world and is the proud author of many articles and technical works.

Contact Ruth at ruth.corkin@hhllp.co.uk or on 01908 713 860