Close form

Brexit trade agreement signed and sealed!

5 January 2021
Mark Friend
Brexit, Accounting & Compliance

As expected at the 11th hour a trade deal was struck! The transition period for the UK leaving the EU has now ended.  The trade deal has been ratified by the UK Parliament so from 1 January we are trading with the EU quota and tariff “free”. There are new Customs regulations and VAT requirements, which in the short term is bound to cause some confusion whilst businesses get to grips with the changes. However we expect imports and exports will continue to flow despite all the media scaremongering.

As advisors this will also be a learning curve for us and we catch up with all the VAT changes. Unfortunately we will be unable to assist you with the new Customs regulations but we hope that this article will at least direct you in the right direction!

The full agreement is entitled “trade and cooperation agreement between the European Union and the European atomic energy community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part” and can be seen here.

The key points of the agreement are outlined below:

  • Travel – UK nationals will need a visa for stays longer than 90 days in a 180-day period and there will be new procedures for UK travellers at EU borders. European Health Insurance Cards, (EHIC) cards will remain valid until they expire. Mobile roaming charges may change so if you are using your phone abroad check with your plan provider first.
  • Trade – There will be no tariff charges on goods or quota limits on the amount that can be traded from 1 January. However there will be Customs checks at borders and customs declarations will need to be made by exporters from the EU and the UK.
  • Services – UK financial businesses lose their access to EU customers (many larger firms have already established subsidiaries within the EU to continue access) and whilst the UK has granted EU businesses temporary permission to continue servicing UK customers, there is no reciprocal EU agreement for UK businesses as yet.
    We expect regulatory discussions about “equivalence” in 2021 and hopefully, an arrangement whereby UK firms will get access to EU customers.

There is a Government Brexit checker to assist with the planning for business, family, and personal circumstances. Use the Brexit checker to get a personalised list of actions. You can also sign up for emails to get updates for what you need to do.

See: https://www.gov.uk/transition

There are other agreements on fishing, security, the Justice system and study which have been widely commented on in the last few days and it is now a question of moving forward with the agreement and dealing with the new lockdown rules and planning for recovery.

Trade with the EU

 There is a lot of documentation to go through so to help you we provide links to a further five blogs which we hope will make it a little easier to find what you are looking for:

Importing goods from the EU to Great Britain from 1st January 2021.

Importing goods by post

Exporting goods from the Great Britain to the EU from 1st January 2021.

Exporting- getting an EORI number

Customs declarations for goods you bring or receive into the UK

Post Brexit VAT

If you are unclear about the customs regulations we would recommend you direct your queries to HMRC directly. If you have any specific VAT queries then please contact your client manager at Friend & Grant.

The content in this blog is correct as at 05/01/2021. See terms and conditions.

Similar articles

girl on laptop with dog asleep
29 June 2021

Don’t miss out on tax relief for home working!

Given the recent advice from our prime minster about working from home where applicable, many employees will be wondering whether they can make a tax claim for working from home.

Fountain pen on lined paper
23 June 2021

What is an executor?

We do wonder sometimes if the people being appointed as executors actually know what they’re signing up for, so we thought it might be useful to summarise an executor’s duties – both for those who are currently writing their wills and for those who are asked to take on the role.

Confetti on floor
7 June 2021

What are the common traits of a successful business owner?

Having been in business myself now for almost 30 years I have seen the common traits of those business people who are successful and those who aren’t. It isn’t about having an extraordinary new idea which no one has thought about or tapping into new markets, although this is great if you can. It is more about doing the right things and doing them well.

Our 3 step risk-free guarantee puts your mind at rest and keeps us on our toes!

FIND OUT MORE
Bryant House - Friend and Grant Chartered Acocuntants and Tax Advisors

Book Your Discovery Meeting

Are you hungry for success? If you run a small to medium size business and you want to grow your sales, increase profitability and pay less tax then you have come to the right place.