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Indirect Tax: Taking control of the Brexit process

Indirect tax experts from Midlands accountants Smith Cooper discuss how to take control of the Brexit process to avoid potential pitfalls.

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The uncertainty around Brexit continues. This week, the UK and other Member States are considering a further extension to the date on which the UK will leave the European Union. The UK government is still unable to agree on a proposed deal creating ongoing issues for both UK and EU businesses who simply want to ensure that they are able to continue to trade post-Brexit. Whilst leaving under the terms of an agreed deal would be clearly preferable, the risk of a no-deal remains.

A lot has been written with regard to the steps and actions that UK businesses need to take to ensure that they can trade with the EU post-Brexit. We have however seen figures from UK government that suggests there are a significant number of UK businesses who have not yet actioned these requirements.

Non-compliance could create supply chain issues. So what about EU suppliers trading into the UK? Those with a number of UK customers may want to consider taking control of the supply chain process rather than running the risk of relying on their customers.

Non-compliance could create a number of issues for EU suppliers:

  • Goods not being cleared and left at port
  • Damage to perishable materials
  • Supply chain delays
  • Impact on cash flow, increase in debtor days


EU Suppliers with a number of UK customers could take control of the supply chain

Avoid customer non-compliance issues and ensure goods will not be held at port by taking control of the supplies you make into the UK.

  • Act as importer of record and receive goods into the UK for onward supply to your customers
  • Incorporate a UK subsidiary or branch
    • Lighter alternative to register for VAT as a non-established taxable person
  • Obtain an EORI
  • Register for Transitional Simplifi ed Procedures
  • Apply for importer authorisations or appoint an agent or customs broker

The Smith Cooper solution

Smith Cooper can offer a cost-effective outsourced solution:

  • Company incorporation / VAT registration
  • Preparation and fi ling of company accounts and tax returns
  • Fully outsourced import management system
  • Completion of supplementary declarations
  • Customs duty calculator
  • Act as tax agent and deal with all HMRC communications and correspondence

To find out more, contact Smith Cooper's Head of VAT & Indirect Tax Services, Gavin West.