Category Archives: Brexit

HMRC guidance for businesses to prepare for potential no-deal Brexit

Ahead of Britain’s upcoming departure from the European Union (EU), HM Revenue & Customs (HMRC) is warning businesses about the necessary steps they need to take to prepare for the unlikely event of a no-deal Brexit.

Earlier this year HMRC sent an initial warning to businesses who import or export goods within the EU, warning that should we fail to reach a deal, there would be immediate changes about the way that businesses trade with the EU.

More recently, HMRC has prepared a second letter that will be sent to those businesses, detailing the three steps that businesses should take now to prepare for the possibility of no deal.

  • The first of these steps is to register for a UK Economic Operator Registration and Identification (EORI) number at https://goo.gl/paAobk.

Businesses will need an EORI number to continue to import or export goods with the EU after 29 March 2019, should the UK leave without a deal. They will also need the number to apply for upcoming authorisations that will help to make the customs processes easier for businesses.

  • The second step that businesses will be advised to take is to decide whether to hire a customs agent to make import/export declarations, or if the business would like to make these declarations themselves through software that interacts with HMRC systems.

Whatever the decision it is encouraged that businesses take steps to prepare by either contacting an agent to find out what information they require or contacting a software provider to ensure their product meets the requirements of the business affected.

  • The final action HMRC is encouraging businesses to take is to contact the organisation that moves their goods to find out if they require any additional information to allow them to make the correct safety and security declarations for the goods.

More information on these changes can be found at https://goo.gl/EfgXXS

The international team at East Lancashire Chamber of Commerce have also put together a ‘Brexit Hub’ to look the practical actions internationally active companies can take to prepare and mitigate or manage the impact of Brexit, details can be found here https://www.chamberelancs.co.uk/brexit/

If your business is likely to be affected and you are unsure about the actions required, then it is important to seek specialist advice. Contact us on 01254 679131 and speak with your usual PM+M contact should you need any help or email us at enquiries@pmm.co.uk.

Brexit: Opportunities to be found

Brexit Part 2: Acquiring UK businesses

As time passes by, it feels that the word ‘Brexit’ will eventually become an unspoken word, like ‘The Scottish Play’. It will be associated with bad luck. However, as the UK starts to negotiate our exit from EU, we believe there are some positives aspects that should be considered by EU based companies that may be looking at setting up a business in new territories

From an economic view, the current rate of corporation tax in UK is the lowest in the G20 and this rate is set to continue to reduce over the next few years.

The workforce in the UK is the second largest in the EU and is one of a very small number of EU countries that expect to have a labour supply growth in the next 15 years. Furthermore, the flexible employment laws mean companies can employ staff in a way that suits the business.

The UK has an excellent infrastructure and there are significant projects planned to improve the current transport systems. These include Crossrail in the south east and High Speed 2 which will link eight of Britain’s ten largest cities.

The fall in the value of sterling in recent months makes the UK very attractive from a cost of investment perspective. Clearly how long and to what degree the pound will remain relatively weak is unknown. However, EU companies should consider taking advantage whilst they can.

Away from the financial and commercial aspects, the UK is very diverse for such a relatively small place. There is a wide variety of communities all over the UK and the variety of businesses to acquire reflect the diverse nature of the UK. There are therefore undoubtedly business opportunities to satisfy all requirements.

The exit by the UK of the EU will undoubtedly result in several negative outcomes for UK based businesses. However, there will also be considerable opportunities for those ensuring they are best placed to take advantage. As matters currently stand there appears to be no U-turn on the agenda for the UK leaving the EU, therefore it seems obvious that business owners from across the globe should ensure they are best placed as matters develop. The close proximity of the UK to mainland Europe gives a clear first mover advantage to European businesses.

Companies that have a strategy to acquire or establish a business in the UK should ensure they have UK based advisers, who are capable of dealing with acquisitions or setting up a new business. This will also include advising on any tax implications of trading in the UK and an understanding of the interaction with overseas tax legislations. Obtaining the right advice from the outset is critical.

In conclusion, EU business owners should invest some time and money now to thoroughly research the UK market place and potential acquisition targets. Those who have a well thought out plan in place for the UK’s exit will not consider ‘Brexit’ to be a cursed word and may indeed consider it to be a word associated with good luck and future prosperity.

If you would like to discuss any of the points raised, we would be happy to help, please contact Tim Mills  (tim.mills@pmm.co.uk)