The leaders of the UK and the European Union (EU) signed the Withdrawal Agreement, and the UK finally left the EU on 31 January 2020. Brexit has only just begun.

What happens now that the UK has left the EU?

Even though we have officially left the EU, we are now in a transition or implementation period. The aim of the transition period is for the UK to agree on deals for future arrangements with the EU and the rest of the world. During this time it is ‘business as usual’ as the UK is covered by EU rules until the end of 2020.

HMRC has contacted businesses in the UK who may import and export between the UK and the EU to explain what they can do to prepare for changes to customs arrangements after the UK has left the EU.

HMRC has confirmed that the current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period.

However, from 1 January 2021, the way businesses trade with the EU will change. HMRC is reminding businesses that they should prepare for life outside the EU, including ensuring they are ready for customs arrangements.

In order to prepare your business for 1 January 2021 you should:

HMRC has posted letters to 220,000 VAT registered businesses advising them on the current position. We recommend that in order to stay up-to-date with all the latest advice from HMRC you should sign up to their email alerts.

We will advise you on the progress of negotiations when they happen and what these will mean for your business.

If you would like more information on how Brexit will affect your business please contact Derek Boughton on dboughton@ellacotts.co.uk or 01295 250401 or contact us here.