EORI number Archives - London Chartered Accountants Blog

The hard-fact for business remains, as the law currently stands, the UK leaves the EU on 29 March; Deal or No Deal. As the 29 March is less than 50 days away now, it is necessary to consider what this would mean in practical terms should no deal become reality by default.
The government has started issuing some guidance on things to consider, should the no deal become reality.

As a first step, we explore areas businesses need to think about in order to prepare themselves from a regulatory compliance perspective:

Import/Export Ready

1. If you import and export goods to EU, under a no deal scenario you will need UK EORI number. This can be obtained here. We recommend registering for one now, even if it is not used.
2. Customs declarations will be required. The government has said it will publish further information closer to the time. However, here are the tariffs in place currently. To assist in cash-flow modelling should these rates become applicable.
3. Review the terms and conditions of your contracts to reflect the business will be importing or exporting goods.

VAT Ready

1. When importing goods to the UK, the government intends to allow for the Import VAT due to be reported on a business’ VAT return. Rather than paying it at the border.
2. If exporting goods direct to EU consumers and businesses, then import VAT and customs duties will become due when goods arrive in the EU.
3. For those that sell digital services, the Mini One Stop Shop (MOSS) portal, as things currently stand will no longer be available. To continue using MOSS it will be necessary to register in an EU Member state for the VAT MOSS non-union scheme. Registration needs to be completed by 10 April 2019 to report sales between 29 and 31 March 2019

Financial Reporting Ready

1. If a UK business has a branch operating in the EU, under a no deal scenario it will become a third country business. Remaining EU Member States may no longer deem compliance with the Companies Act 2006 as sufficient.
2. The guidance states exemptions in Companies Act 2006 will no longer be available to companies with parents and subsidiaries in the EU. Highlighted is the current exemption from preparing dormant accounts where an EU parent company prepared group accounts.

In addition to these compliance requirements under a no deal scenario, we strongly recommend cash flows are reviewed. As on top of costs arising from the imposition of tariffs and VAT, it is possible that the working capital cycle will extend due to hold ups in transportation.

Overall there are fewer than 50 days to go until Brexit, therefore it is necessary to start planning for a no deal eventuality. This is likely to be a very uncertain time for your business, especially while getting to grips with the new trading arrangements. However, action now can at least lay foundations for operating under a no deal scenario.

Shore crane loading containers in freight ship

The clock struck midnight…Happy New Year!… and the clock continues to tick towards the 29 March 2019.

With the uncertainty as to what form Brexit will take, and the possibility that we may leave the

EU without a deal, there are 3 actions you need to take now if you import and/or export goods with the EU. That’s because on the 29 March 2019 there would be immediate changes to the way you trade with businesses in the EU.

The 3 actions you need to take now are:

1. Register for a UK Economic Operator Registration and Identification (EORI) number

If we currently prepare your VAT Returns, we can do this for you. Or you can do this online at www.gov.uk/hmrc/get-eori. You’ll need an EORI number to continue to import or export goods with the EU after 29 March 2019, if the UK leaves the EU without a deal. You will also need an EORI number before you can apply for authorisations that will make customs processes easier for you.

2. Decide if you need an agent

Decide if you want to hire an agent to make import and/or export declarations for you, or if you want to make these declarations yourself by purchasing software that interacts with HMRC’s systems. If you want to declare through an agent, you must contact one to find out what information they’ll need from you. If you want to make the declarations yourself, you will need to talk to a software provider to make sure that their software product meets your needs, depending on whether you import, export or both.

3. Speak to your those who transport your goods

Contact the organisation that physically transports your goods to find out if you will need to supply additional information to them so that they can make the safety and security declarations for your goods, or whether you will need to submit these declarations yourself.