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.
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.