No Deal Brexit? Read on if your business trades with the EU

no deal brexit

A No Deal Brexit seems more likely today than yesterday it would appear, but what does that really mean for businesses trading with the EU?

The ICAEW (Institute of Chartered Accountants of England and Wales)  tells us HMRC has begun writing to all VAT-registered businesses in the UK that currently only trade within the EU in order to inform and advise them of what might happen should there be a ‘No Deal Brexit’.

The letters set out how businesses would trade with the rest of the world in the unlikely event the UK leaves the EU without a deal, and how they can prepare.

The letter is for advice and guidance only and can be accessed on the GOV.UK website, No deal Brexit advice for businesses only trading with the EU

HMRC will write to businesses again before the spring of 2019 with any actions that need to be taken and when.

HMRC have asked the ICAEW to communicate the following message to their members and to share the text of the letter (see link above):

‘The Government is confident it will reach a mutually beneficial deal with the EU as it negotiates the UK’s exit. As a responsible Government, it is also preparing for all scenarios, including the unlikely event that we leave the EU in March 2019 without agreeing a deal.

We’ve engaged with you already on “no deal” preparations already underway, including the publication of a series of technical notices and the partnership pack HMRC is developing. We also flagged we would be writing to VAT-registered businesses in the UK that currently only trade with the EU.

Please find attached the letter many of your members will begin to receive over the course of this week. The letters set out how businesses would trade with the rest of the world in the unlikely event the UK leaves the EU without a deal, and how they can prepare. The letter is for advice and guidance only. HMRC will write to businesses again before the spring of 2019 with any actions that need to be taken and when.

The letters should arrive with businesses from Thursday 13 September.’

Further communications will follow as HMRC also shares its “no deal” messages with businesses under the VAT threshold.

There is more information for members about Brexit on ICAEW’s website at www.icaew.com/brexit

As always, please do not hesitate to contact us should you have any questions relating to this article.

For up to date tax information, advice and useful calendars and calculators, download our free Tax App which can be found HERE

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