PM Boris Johnson and the Conservatives did what they had vowed to do in last year’s election to ‘Get Brexit done’. Friday saw celebrations and commiserations from the Leavers and the Remainers.

The question now is what happens next? We are out of the EU, but what difference does this make and what is the transition period?

Essentially, until 31 December, when the transition period ends, the UK will continue to pay into the EU and be subject to its various rules and regulations. The pre-Brexit rules on trade, travel and businesses between the EU and the UK will continue to apply until the end of the year.

Negotiations Set To Continue

During this transition period our government has determined it will negotiate the detailed arrangement that will apply from 1 January 2021. If these negotiations fail, we may still face the prospect of a “no-deal” scenario next year.

Most political commentators have made the point that a detailed agreement on all issues will be difficult to achieve in 2020; there is an awful lot of ground to cover, and as our Prime Minister has underlined his determination to avoid any extension of the transition period beyond the end of the year, UK businesses face uncertainty yet again: no-deal or a yet-to-be determined trade agreement.

Our advice to clients is to spend some time during 2020 undertaking a risk assessment based on this uncertainty. It would seem to be sensible to create a plan to cover both extremes.

Difficult Times Ahead

This makes planning difficult if you buy or sell goods and services to or from EU countries. Unfortunately, even those companies that have no direct trade with the EU will likely find that their suppliers and customers – who do trade in Europe – will be affected and may create disruptions in their supply lines.

Tackling this conundrum – what will be the effects on our businesses from 1 January 2021 – is like playing darts when the board is nailed to the side of a moving bus. As we get closer to the end of the year outcomes will be easier to predict. In the meantime, sensible planning would seem to be appropriate.

Brexit Formal Review

Call if you would like our help to set up a formal review of your business prospects once the present transition period has run its course.

The UK can finally breathe and celebrate an end to Brexit uncertainty. Whatever your political motivation, most of us will be relieved that last week’s election has created a government with a working majority. At last, there is a light at the end of the uncertainty tunnel.

End To Brexit Uncertainty

If you have any sort of trading platform with the EU, you will need to dot the i’s and cross the t’s regarding post-January 2020 changes that we are promised will now happen. At the very least, EU traders should complete their Brexit impact assessments and take steps to mitigate any apparent risks identified.

If you need any help with this, give us a call.

When Will The Next Budget Be Announced?

The new government will need to get its Budget act together. Brexit is likely to monopolise their time until the end of January, but once that is out of the way, we would expect to see a Budget date in the first two weeks of February.

Budget issues do need to receive fairly urgent attention as there are a number of Income Tax reliefs that are still to be determined for 2020-21.

As details emerge we will be publishing details and advising clients of any new opportunities to trim their tax bills and take advantage of any new opportunities revealed by the Budget announcements.

What To Expect As A Business Owner In 2020

• Income Tax, VAT and National Insurance will not be increased.
• National Insurance will rise to £9,500 from 2020.
• Business rate reduction.
• Increase the National Insurance Employment Allowance.
• Clampdown on late payers of business accounts.
• R&D tax credit to increase to 13%.
• Reforms to CGT Entrepreneurs’ Relief.
• New tax anti-avoidance legislation.

Approaching The End Of The Tax Year

Once the Budget changes are announced there should be enough time to consider tax planning options to action before 5 April 2020. It is worth underlining that once the tax year-end date passes, 99 per cent of your tax planning options for 2019-20 will cease to be effective.

If you need a tax planning review for 2019-20, get in touch.

The Brexit issue continues to drag its heels and it now looks as if we will have a general election until matters are resolved.

Autumn Budget Postponed

Another crucial matter that will be delayed is the presentation of a Budget that will determine any changes to the tax code next year.

However, while the politicians attempt to resolve these issues, what can we do?

Don’t Wait For The Storm To Pass

This is not a time to sit back and wait to see what happens. At the very least we recommend that you create a plan of action for your business.

This planning should include all aspects of your business, including:

• Sales
• Costs
• Investment in new plant and equipment
• Management of your working capital including cash flow

If undertaken with care, this planning exercise will reveal trouble spots before they arise. In particular, it will flag up any cash flow low-spots and give you time to agree on funding with your bank.

There are no downsides to this planning process, only wins.

Ensuring Your Business Thrives

Once you have your plan it is a simple matter to upload the data into your account’s software. This will enable you to compare actual monthly results with your plan and remedy any variations as they happen.

This build and creation of management accounts for thriving businesses is something we advocate. If this is a process you would like to take on for your business, please call. We can help you create your plan and advise you which accounts software to use.

Whatever the outcome of the Brexit situation, using your management accounts to increase your business fitness will place you in the front line when matters are resolved. You can hit the ground running.

The phrase “no-deal Brexit” is assuming a rather specific meaning as the exit from the EU grinds towards a conclusion – the present deadline for achieving a withdrawal agreement is the end of October.

No Luck

If we fail to achieve consensus by that date, there are three outcomes:

• We agree terms for the withdrawal agreement,
• We kick the deadline down the road, or
• We leave with no agreement.

Withdrawal Agreement Likely

Recent debates on this topic would seem to indicate that the first option is unlikely, the second option doubtful which promotes the no-deal option to the top spot, more likely.

Extended Supply Chain

Although the majority of smaller businesses in the UK do not have direct trading links with firms in the EU, it does not stretch imagination by many degrees to conceive that our expanded supply chains (customers of our customers, suppliers of our suppliers) are EU businesses.

This inevitable conclusion means that if there is a no-deal outcome, and if this triggers a disruption in supply lines, then we all need to sit up and take notice.

World Trade Takeover

Many firms who trade with the EU have already invested in strategies to secure their business interests in the event that we leave the EU with no-deal and have to cope with World Trade Organisation tariffs. Other practical difficulties, moving goods across the channel for example, require more imaginative planning.

Experts Advice For No Deal Brexit

It is instructive that the only detailed instructions published by government departments cover the no-deal scenario. We recommend that all businesses take a look at this material. See The Department for Exiting the European Union advice, here.

We are working with clients to run risk assessment tests and create plans that will help them manage a no-deal transition. If you would like to avail yourself of this advice, please call asap. This topic is now assuming greater prominence and there really is little time left to get prepared…

There is no doubt that many of us are heartily tired of the drawn-out Brexit debate, and yet we should not ignore this topic completely.

Hard Brexit, Hard Decisions

Opinion seems to be hardening for the so-called “hard” Brexit: where we leave at the end of October 2019 with no agreement.

Ignoring the political arguments, this would have an impact if you are in business as none of us will be isolated from the changes to our trading terms with the EU after this date.

Plan B

Businesses that trade directly with EU customers and or suppliers will hopefully have contingency planning in hand based on a thorough risk assessment. This article does not have space to consider the planning options in detail but affected importers and exporters should get their ducks in a row as a matter of some urgency.

And even if you do not trade directly with the EU, your UK suppliers or UK customers may do so, and this may have a direct impact on your business if supply chains are disrupted or prices are increased to account for tariff changes.

How To Prepare For A No-Deal Brexit

It is instructive that the only detailed advice offered by government is to outline what we should do if a “no-deal” scenario occurs. In the conclusion to a publication published December 2018, the Department for Exiting the European Union said:

 Our communication with businesses and the wider public about a no deal scenario will increase as we approach our exit from the EU.

 As a responsible government we have spent more than two years carrying out extensive preparations for all scenarios, including no deal.

 We recommend businesses now also ensure they are prepared and enact their own no deal plans.

The full report “UK government’s preparations for a “no deal” scenario” can be viewed online here.

If you need help to revisit this issue and refresh your contingency planning, please call asap. The clock is very definitely ticking.

On the 12th March, the government updated its Brexit advice to traders within the EU. The advice assumes a no-deal outcome.

On the basis that being prepared for the worst possible outcome, and a no-deal Brexit result is universally accepted to be a disaster for UK businesses. We are reproducing in full the text of the letter in this post.

Here’s What HMRC Are Advising:

Leaving the EU: actions for your business to take now to be ready for no deal

This letter sets out actions that it’s important you take now and changes you need to be prepared for, in the event that the UK leaves the EU without a deal. The actions set out in this letter do not apply to importing and/or exporting goods between Northern Ireland and Ireland. The government will do everything in our power to avoid a hard border whatever the circumstances. 

How to make customs declarations

You will be responsible for making customs declarations for your UK-EU trade in a no deal scenario. Many businesses find the simplest way to make customs declarations is to appoint a customs agent to manage the process for them.

So that you are ready you should now:

• register for your Economic Operator Registration and Identification (EORI) number if you haven’t done so already at www.gov.uk/hmrc/get-eori. Then:
• if you want to make declarations through a customs agent, appoint one as soon as possible.

If you cannot appoint an agent, or do not think this is the right solution for your business and if you intend to import or export regularly, you should now:

• make sure someone in your business is trained to make customs declarations
• buy specialist software that links to HMRC’s customs systems
• if you’re exporting, register for the National Export System at www.gov.uk/guidance/export-declarations-andthe-national-export-system-export-procedures.

For further information, go to www.gov.uk/hmrc/trade-with-the-eu.

Making importing easier

HMRC is introducing new Transitional Simplified Procedures (TSP) for customs, to make importing easier for the initial period after the UK leaves the EU, should there be no deal. 

Once you’re registered, you’ll be able to transport your goods into the UK without having to make a full customs declaration at the border, and you will be able to postpone paying your import duties. However, for controlled goods you will have to provide some information before import.  Sign up for TSP online from 7 February at www.gov.uk/hmrc/eu-simple-importing. You’ll need an EORI number to do this.

For further guidance, including which ports TSP applies to, please go to www.gov.uk/hmrc/eu-simple-importing.

Changes to VAT

The way you account for VAT on imports will change. You will be able to pay import VAT in your next VAT return rather than when your goods arrive at the UK border. You will:

• be able to declare and recover import VAT on the same VAT return
• need to provide your VAT registration number on your customs declaration.

Further information will be available soon.

Changes to VAT IT systems

If the UK leaves the EU without a deal you will no longer be able to use certain EU VAT IT systems. If you currently use any of these systems, you should be aware of the following:

EU VAT Refund Electronic System

To make EU VAT refund claims for 2018 using EU VAT Refund Electronic System, you should submit these before 29 March 2019, instead of the normal deadline of 30 September 2019. After we leave the EU, UK businesses will be able to reclaim VAT from EU countries, by using the existing processes for non-EU businesses.

EU’s VAT number validation service (VIES)

If you use VIES to check a customer or supplier’s VAT number, UK VAT numbers will no longer be part of this service after 29 March. A UK-only online VAT number checker will be available on GOV.UK from 29 March. You will still be able to use VIES to check the validity of EU VAT numbers.

UK VAT Mini One Stop Shop (MOSS)

If you currently use MOSS to declare and pay VAT on sales of digital services to EU consumers, you should submit your return for supplies made between 1 January 2019 and 29 March 2019 via the UK portal by the normal deadline of 20 April 2019. If you want to continue to use MOSS for sales you make after the UK leaves the EU, you will need to register for MOSS in an EU Member State. You should do this by 10 April 2019. For further information, go to www.gov.uk/hmrc/eu-vat-it-rules.

Make sure you find out about all our EU Exit news as it happens

• Register for our email update service at www.gov.uk/hmrc/business-support select ‘business help and education emails’, then ‘EU Exit’.
• Non-VAT registered businesses should also go to www.gov.uk/hmrc/trade-with-the-eu for changes that affect them.

We recognise the challenges that you face in getting to grips with new and unfamiliar requirements by 29 March 2019. We are committed to supporting you and your business through this period of change, helping you to comply and making importing and exporting with the EU in a no deal scenario as easy as possible. We’ll write to you again soon, to let you know what further actions you’ll need to take and when.

Readers concerned that they cannot cope with the apparent complexities of the above should seek professional advice. Please call, we can help.

HMRC have issued a letter to VAT registered traders that either export or import goods to and from the EU. They are introducing new Transitional Simplified Procedures (TSPs) for customs purposes.

For Importers

HMRC is introducing new Transitional Simplified Procedures (TSP) for customs, to make importing easier for the initial period after the UK leaves the EU, should there be no deal. Once you’re registered, you’ll be able to transport your goods into the UK without having to make a full customs declaration at the border, and you will be able to postpone paying your import duties. However, for controlled goods you will have to provide some information before import:

• Sign up for TSP online from 7 February at gov.uk/hmrc/eu-simple-importing You’ll need an EORI number to do this.

 For further guidance, including which ports TSP applies to, please go to www.gov.uk/hmrc/eu-simple-importing.

Customs Declarations In The Event Of A No-Deal Brexit:

You will be responsible for making customs declarations for your UK-EU trade in a no deal scenario. Many businesses find the simplest way to make customs declarations is to appoint a customs agent to manage the process for them.

So that you are ready you should now:

• Register for your Economic Operator Registration and Identification (EORI) number if you haven’t done so already at gov.uk/hmrc/get-eori.

Then:

• If you want to make declarations through a customs agent, appoint one as soon as possible. If you cannot appoint an agent, or do not think this is the right solution for your business and if you intend to import or export regularly, you should now
• make sure someone in your business is trained to make customs declarations
• buy specialist software that links to HMRC’s customs systems
• if you’re exporting, register for the National Export System at gov.uk/guidance/export-declarations-andthe-national-export-system-export-procedures .

For further information, go to www.gov.uk/hmrc/trade-with-the-eu .

Our Advice To Importers and Exporters To The EU

As the political process grinds to a, as yet, unresolved conclusion, we recommend that importers and exporters to the EU take a close look at the links embedded in this article and act as appropriate.

If you require further advice on how to implement the above, call us today.

There are just under 60 days left until the present withdrawal deadline is reached, 29 March 2019.

Leaving aside the fact that there were no violins available, it’s interesting to seek a comparison between the supposed musical antics of Nero in AD64. As Rome burned and our government, preoccupied with important political matters as British industry slips ever closer to the cliff edge of a no-deal Brexit.

HMRC Advice For No-Deal

Last month, HMRC published an update for businesses on what to do before 29 March in the event that we disengage from the EU with no agreement.

They suggest that there are three actions you should be considering now*: 

Registering for EORI 

Register for a UK Economic Operator Registration and Identification (EORI) number 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; before you can apply for authorisations that will make customs processes easier for you – we’ll tell you more about applying for these early next year.

Software Considerations

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 buying software that interacts with HMRC’s systems). If you want to: declare through an agent, contact one to find out what information they’ll need from you; use software to make declarations yourself, talk to a software provider to make sure that their product meets your needs, depending on whether you import, export or both.

Transport Communications 

Contact the organisation that moves your goods (for example, a haulage firm) 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.

Brexit Video

Learn more tips on how to prepare for Brexit by watching our latest video below. If your business requires assistance, contact us to see how our team of experts can help.

*Readers in Northern Ireland should take note that the instructions are slightly different.

Are we heading for a no deal, a no change or some form of compromised Brexit?

The days of free access to the EU for the exchange of goods are likely to be numbered due to the UK’s exit on 29^th March 2019.

Unless abandoned completely, one of the outcomes highlighted above will soon become a reality for UK businesses. So, what is the best way to prepare?

If You Supply, Buy or Sell to the EU

Our latest video offers an insight into what you as a business should do that will secure your financial and supply chain strategy for Brexit.

Most importantly, every UK business should aim to:

• speed up the conversion of sales into cash
• rid ourselves of redundant assets
• re-examine the ways we fund our businesses

We Can Help

If you’re unsure on how to action the advice given in the video, we can assist you with the planning required to create impact assessments. Contact us today to find out more.

It is hardly surprising that to prepare for Brexit is fast becoming as big a turnoff as a tax.

How on earth are we supposed to react or adapt to such far-reaching changes when the exact details of our exit are still undecided just a few weeks before the March 2019 deadline?

Businesses that buy or sell goods to the EU must be pulling their corporate hair out – just how will their supply lines be affected?

A New Website Covering Possible Brexit consequences

The government has already published a bunch of documentation setting out the consequences of a no-deal outcome and they have now doubled up this resource by creating an EU exit website aimed at advising UK businesses.

The HM Government site’s URL is https://euexitbusiness.campaign.gov.uk/

The main points of focus are:

• Employing EU citizens
• Importing, exporting and transporting
• Operating in the EU
• Regulations and standards for products and goods
• Using personal data
• European and domestic funding
• Intellectual property
• Energy and climate, and
• Public sector procurement.

If you have neither time or inclination to for this level of detail, what can be done to safeguard your situation and have ongoing benefits for your business?

Actions To Take Now 

It would seem to make sense to take a hard look at supply line issues by undertaking a formal impact assessment and we are aware that many importers and exporters already have this process underway.

The other action you could consider is to work on your business fitness. If, as has been suggested by the pundits, Brexit does create a slowdown in economic activity, then being in good financial shape will not be wasted effort.

If you think this is an idea with traction please call so we can discuss your options.

The following guidance on travelling to the EU after Brexit was published on the GOV.UK website 20 December 2018. Much of the guidance has been updated on the basis of a no-deal Brexit.

UK citizens planning a trip to the EU and EEA before 29 March 2019 are not affected by Brexit changes.

Flying To The EU With A No Deal Brexit

The following comments assume a no-deal Brexit and would apply from 29 March 2019:

Flying to the EU from the UK

Flights should continue as today. Both the UK and EU want flights to continue without any disruption. There will be no impact to direct flights to non-EU countries.

Before you leave for the airport, check online for the latest travel.

Aviation security for passengers

Most passengers will not experience any difference in aviation security screening. The UK will continue to apply robust aviation security measures and prioritise passenger safety and security.

The European Commission has proposed measures to avoid extra security screening of passengers from the UK when transferring to onward flights at EU airports.

Air passenger rights

For air passengers on a flight departing the UK, the same passenger rights as apply today will continue to apply after the UK leaves the EU. For EU registered airlines, EU law will continue to apply in respect of flights to and from the EU.

• passengers subject to denied boarding, delay or cancellation, will be entitled to assistance and compensation on the same basis as today
• passengers with reduced mobility will still be entitled to the same assistance from airports and airlines
• UK consumer protection in the event of insolvency of a travel provider will continue to apply

Travelling by Train To The EU From The UK

Your rights as a rail passenger using either domestic or cross-border rail services will remain unchanged. Passengers on cross-border rail services will continue to be protected by the EU regulation on rail passengers’ rights, which will be brought into UK law.

Eurotunnel to the EU from the UK

Your rights as a passenger using Eurotunnel’s cross-border shuttle services will remain unchanged. Passengers can continue to use Eurotunnel’s existing complaints procedure.

Bus, Coach and Sea Travel To The EU 

Passengers on cross-border bus and coach services will continue to be protected by the EU regulation on bus and coach passengers’ rights, which will be brought into UK law.

Travelling by sea to the EU from the UK

Most passengers travelling to the EU by sea should not experience any difference to their journey.

Ferry passengers

Passengers on ferry services will continue to be protected by the EU regulation on passengers’ rights, which will be brought into UK law.

Cruising

Cruise operations will continue on the same basis as today. Passengers who embark on a cruise at a UK port will continue to be protected by the EU regulation on maritime passengers’ rights, which will be brought into UK law.

Post-Brexit Travel Checklist

So, there we have it. Based on these comments there would seem to be a smooth transition for travellers in the event of a no-deal Brexit.

However, add the following to-dos to your holiday check list if you are travelling to the EU after 29 March 2019:

• Make sure you don’t need a visa for your visit.
• Check out driving restrictions, can you use your UK driving license?
• If using your car, is your insurance still valid for travel to the EU?
• Advise your bank and make sure you will be able to use your cards in your EU destination.
• Make sure your travel insurance cover is still valid.
• Check with the airport or your agents to make sure there are no delays…

Bon voyage!

From 1 April 2019, ALL VAT registered businesses with turnover above the £85,000 VAT registration threshold will have to submit their VAT returns from within software that can link with HMRC’s networks. This is part fo HMRC’s vision of making tax digital.  In techno-speak, your data will need to be transferred using a designated API (HMRC’s application programming interface).

HMRC-Compatible Software Required

The fact that you have always prepared your VAT returns electronically, for example, by using a spreadsheet to record transactions and create the data for your VAT returns, will not be enough. Your spreadsheet will not have the functionality to link with HMRC’s API. In these circumstances, you will need to acquire bridging software that will draw data from your spreadsheet and forward it the HMRC in the required format.

Why We Choose Xero

HMRC have now clarified that only businesses with a taxable turnover that has never exceeded the VAT registration threshold (currently £85,000) will be exempt from Making Tax Digital (MTD). You will, therefore, need to keep an eye on your taxable turnover, especially if you think it is close to the VAT registration threshold.

Businesses Exempt From MTD

Additionally, you may be excused from applying the MTD filing obligations if:

• your business is run entirely by practicing members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example, those religious beliefs prevent them from using computers);
• it is not reasonably practicable for you to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason; or
• you are subject to an insolvency procedure.un

For the rest of us that are required to observe the MTD regulations, we should be using accounts software that will be MTD compliant come 1 April 2019. If you have consulted us on this issue you can be confident that any software that we have recommended will pass muster.

If you are still unsure which way to jump, please call so that we can help. As far as we can tell HMRC are on track to convert to this new filing process and the clock is ticking.

Truthfully, no one knows what trading conditions will be like once we exit the EU. Will supply chains seize up or will it be business as usual?

If there is a possibility, however remote, that the commercial landscape will change, doesn’t it make sense to undertake an assessment of any downside risks and plan for Brexit accordingly?

Disruption To Supply Chains

From a Brexit point of view, supply chain concerns are likely to cause the most disruption, at least initially. Even if your business does not buy or sell goods to the EU, many of your customers and suppliers may, and this could affect your sales and purchases of goods if transport links are affected.

Accordingly, we recommend that you undertake a basic supply chain risk assessment.

For example:

• If you sell goods to EU concerns could you encourage them to increase their stocks of your goods before 29 March 2019?
• If you buy goods from the EU, could you increase your stocks prior to the same date?

Questions For Your Plan ‘B’

If we head for a no-deal Brexit, and you import goods, what effects will import VAT and other duties have on your margins and cash flow?

And if your suppliers or customers have similar concerns, will you be under pressure to reduce your selling prices to customers or find alternative suppliers in the UK?

Prepare For Each Outcome

Until we are certain which way the no-deal or negotiated separation will pan out, we should be planning for all options. Whilst this may seem to be over-the-top at present, come spring 2019, you will be grateful that you are ready for any disruption whatever shape it may be.

If you require help in preparing your options, contact us today to see how we can help. 

Most political analysts appear to agree that the growing disruption caused by the Coronavirus outbreak combined with continuing Brexit uncertainty are likely to impact demand and supply. A combination that may well result in a slow-down in global economic activity.

Budget 2020 And SME’s

It seems unlikely that the Budget announcements this week will do much to completely calm the feats currently in the minds of small business owners. With the government under increasing pressure to announce plans on how the deal with not only the day-to-day problems posed by the virus to business, but also to plan for a potential spread of illness throughout the country even further without any obvious sign of it slowing down.

There are concerns about the cost of meeting sick-pay obligations as increasing numbers of employees are forced to self-isolate in response to government advice in a bid to contain the spread of the virus. This potential, and dramatic, increase in costs have led some to ask whether business owners will be offered more time to pay their taxes.

Will Business Owners Get Their Wish?

As the outbreak in the UK remains at an early stage, we should expect a staged approach to business support from the government. It is possible that the government will have to print money – so-called quantitative easing – to cover the funding support required by the UK business community. This is the method used during the banking crisis of 2008 but isn’t what this Conservative government will have wanted to have to implement at this particular moment in time.

If you have concerns about how your business operations may be affected due to the virus, contact us today.

The Coronavirus poses a significant challenge for all of us and, in particular, the survival of a huge number of a small and medium sized business in the UK, the backbone and engine room of our UK economy. The task is now for the recently-appointed Rishi Sunak and his Treasury advisors to come up with adequate support this week to both answer business owners’ questions and calm their fears.

Do you know everything you need to know about VAT? 

As part of your business planning for 2020, we’ve picked the brain of our VAT expert, Michele Harris, who gives her top four tips when it comes to correctly planning for the all-important, yet somewhat complicated tax.

1. Brexit

In the lead-up to Brexit, HMRC has been very busy lending staff to the Border Agency and other organisations, but they have also been hiring. So, once Brexit is dealt with and everyone is back where they belong, VAT visits may well become more frequent than they have been over the past couple of years.

Are you confident that your company has correctly implemented the many changes in recent VAT law? There may be more changes to come over the next 12 months with the UK being released from the requirements of EU law.

It’s not just Brexit though. There are a number of changes coming. Take the whole building industry. Everyone, from multinational companies down to subcontractors need to financially prepare for the cash flow issues that the ‘VAT reverse charge’ will undoubtedly bring. Have you prepared for this?

2. Get A VAT Health Check

Your business could benefit from a health check if there is some element of complication to your records.

• Do you export and are you aware of the evidence required by HMRC?
• Do you sell a mixture of exempt supplies and VATable supplies and do you know what VAT to reclaim and what you can’t claim?
• Are you aware of what business expenses you can claim back, and which expenses are never allowed, under any circumstances?

A client recently had an issue with the VAT man because they had claimed back almost £7,000 VAT in one quarter which related to an exempt sale. This is not allowed but resulted in no assessment due to Michele’s interventions during a VAT health check.

The possibility of VAT anomalies are endless and a health check will ensure you are on the right path. Contact our team today to start your VAT health check.

3. Don’t Be A VAT Fraudster

Few people set out to deliberately con the taxman out of money. Of course, there is a minority who will make this their career aim, but for the rest of us, it’s more likely to come from being careless.

HMRC won’t always be understanding if you fail to comply with the rules and they are not slow at issuing fines, sometimes very hefty fines. These penalties exist to try to encourage businesses to follow the law but if you are unsure about something, get professional advice. It could avoid a costly bill.

4. File On Time

Make sure you know when your deadlines are for filing your returns. You can check by logging on to your account where you can find out when your returns are due and when payment must clear HMRC’s account.

These two dates are generally the same and fall one calendar month and seven days after the end of an accounting period. If you use the VAT Annual Accounting Scheme, the deadlines will be different. Failure to meet the deadline will result in a surcharge.

If you’re concerned about meeting HMRC’s deadline, contact Michele at our Hitchin office today.

Unsure On Your Next Step?

From complex International VAT matters to registration, our in-house VAT specialist Michele has proven her extensive knowledge in HMRC’s strict procedures. Uncover opportunities when preparing your next VAT submission by contacting Michele today.

On the 31 January, the UK set is set to enter the transition period of Brexit. 

It’s almost here. The day we have been waiting for since the 2016 referendum. And whichever way you voted, I think everyone will breathe a sigh of relief.

But, it isn’t actually the end. Oh, no.

Transition Period Meaning

We are entering the “transition” period of Brexit, during which we will need to negotiate our ongoing terms of trade with the EU. This transition period is due to end on 31 December.

In the meantime, back at the coal-face, what do we need to change in order to import, export or travel to the EU from 1 February?

Most of the government missives are based on the outcome of a No-Deal Brexit. This outcome is still a real possibility unless our negotiating team reach a formal trade deal before the end of the transition period.

What Should I Do?

Published instructions from the gov.uk website says:

For exporters to the EU

1. Make sure you have an EORI number that starts with GB.
2. Check that your importer has an EU EORI number.
3. Decide who will make the export declarations.
4. Decide if you want to export your goods using transit.
5. Check the rate of duty and tax for your goods.
6. Check what you need to do for the type of goods you export.
7. Find out how VAT changes will affect you.
8. Decide who will transport your goods outside the UK.

For importers from the EU

1. Make sure you have an EORI number that starts with GB.
2. Decide who will make the import declarations.
3. Apply to use the transitional simplified procedures.
4. Set up a duty deferment account if you import regularly.
5. Check the rate of tax and duty you will need to pay.
6. Check what you need to do for the type of goods you import.

For firms transporting goods out of the EU by road

1. Apply for operators licences and permits
2. Make sure drivers are eligible to drive abroad.
3. Check rules for the goods you are transporting.
4. Make sure your driver has the right export documents.
5. Find out what vehicle documents your driver needs to carry.
6. Check local road rules.

Full details of all these issues can be found on the gov.uk website at https://www.gov.uk/transition.

Budget 2020 confirmed to be taking place on the 11th March 2020.

The General Election is a thing of the past. Brexit is all set for January 31, so the next big thing to think about is the Budget.

Normally, we would have had an Autumn Budget but with the build-up to the election, it was put on the back-burner. Now, Chancellor Sajid Javid will be ready to open the famous red box on Wednesday March 11. And, we will have the opportunity to find out if the Government is going to deliver on its election promises.

Johnson’s Promise

During the campaigning, Boris Johnson did promise that none of the major taxes would be increased. And, he did announce that the promised decrease in corporation tax, 19 per cent to 17 per cent from April, would likely be deferred.

Hopefully, there will be measures to support business owners as we transition through the EU withdrawal process. Certainly, there should be confirmation that UK businesses in receipt of EU funding will continue to receive equivalent funding from the Government once the EU funding tap is turned off.

Due to the possible disruption in supply lines from the end of this month – when the transition away from the EU begins – it would be helpful if the Government included supportive changes in the Budget that helped UK businesses to maintain their profitability and cash flow.

Speed Is Key

Parliamentary committees will need to get their skates and resolve any debate on Budget clauses as quickly as possible. There is less than 30 days between 11 March and the end of the tax year – 5 April 2020.

We will be reporting on significant changes in this blog immediately following the Budget. Until then, we can probably rest easy that tax rates are unlikely to be increased.

The deadline to file your 2018-19 tax return to HMRC is fast approaching.

Most of our clients will have the reassurance that we have filed their returns online. But, for those who still need to file their 2019 return, it’s time to get into action. If you file after 31 January 2020 late filing penalties will be applied.

11 Million Returns Expected

In an uncharacteristic display of humour, HMRC’s press release published 27 December, was titled: “We’ve been Santa lot of Elf Assessments”.

Apparently, on Christmas Day and Boxing Day over 12,000 tax returns were filed online. To put this into context, HMRC are expecting over 11million returns to be filed for 2018-19.

Don’t Forget To Pay Your Self-Assessment tax

The 31 January 2020 is also the time when any underpayment of tax for 2018-19 – and any first payment on account for 2019-20 – are payable.

Clients reading this post, and who may be unsure how much tax they need to pay, should call so we can confirm any amounts that may be due.

End Of The 2019-20 Tax Year

Following fast on the heels of the tax return deadlines for 2018-19 is the end of the 2019-20 tax year.

We recommend that all business clients and high-income earners complete a review of their tax planning options before 6 April 2020. Once that particular Rubicon is passed, 99% of tax planning options for the current tax year become ineffective.

The Outlook For 2020-21

It is likely that the first Budget of the new government will be presented February 2020, this will no doubt set the tax scene for 2020-21.

Hopefully, the tax goal-posts will not be moved too far from their present position. We will post details of any changes as they are announced. During the election campaign the Conservatives did promise that they would not increase most taxes. However, it was suggested that the further planned reduction in corporation tax (from 19% to 17%) will not go ahead. We assume that the current 19% rate will therefore continue.

Brexit Outlook

Now that political uncertainties have been resolved, let’s hope that business owners across the UK can look forward to the resolution of the numerous challenges that our exit from the EU will likely create. The conclusion of the withdrawal process on 31 January 2020 is just the start of the process. UK businesses will be keen to see the details of the negotiated trade agreement with the EU that is timed to conclude 31 December 2020.