Brexit centre

The decision of the UK people to leave the European Union is one of the most significant events to occur in the history of the EU. Because of our geographic, social and economic ties with the UK, Ireland will experience the greatest impact of this decision among EU countries. The land border makes the situation particularly onerous. Ireland currently operates a trade surplus with the UK and customs checks and controls are increasingly likely.

Chartered Accountants Ireland

Latest Brexit news

Brexit

While the UK government’s temporary proposals for a no-deal Brexit comprehensively cover tariffs, little is said about regulation or quality assurance checks on goods going into the UK.  In a press release issued this week, Director of Public Policy and Taxation at Chartered Accountants Ireland, Brian Keegan said:  “More clarification is needed about how, for example, foodstuffs are going to be regulated for quality control purposes. The tariff regime announced doesn’t deal with the question of how the UK will manage the regulation and quality control of food coming into the UK market.” On the proposals for Northern Ireland, Mr Keegan said: “The open border between Northern Ireland and the Republic of Ireland is very welcome from a supply chain perspective. However, though the proposals suggest no tariffs and very limited checks on trade from Ireland into Northern Ireland, the Republic of Ireland, as part of the EU, will have to fulfil its obligations under the Union Customs Code. This could involve quality assurance checks and even tariffs on goods going into the Republic of Ireland from Northern Ireland under this scenario. This will potentially put traders in Northern Ireland at a competitive disadvantage to traders in the Republic of Ireland and give rise to a confusing arrangement for cross-border exporters particularly those with integrated cross-border supply chains.” Many of the products that Ireland exports to Great Britain would become more expensive under temporary tariff proposals. Metals, chemicals, textiles, footwear and machinery are all included in the schedules. “While the tariffs proposed by the UK in the event of no-deal will apply across the board to all imports into the UK, they are likely to hit Irish exporters the hardest because many of them start from a higher cost-base than suppliers coming from locations such as South America. Tariffs on agri-food under the proposals could be up to 60 percent of the EU’s Most Favoured Nation rate. These additional costs will severely impact Irish exporters who could see their competitiveness severely impacted. ” said Mr Keegan. Cróna Clohisey spoke about the impact of the UK’s proposed tariff regime on Newstalk’s Breakfast Business with Vincent Wall yesterday morning (listen at 13:30).

Mar 14, 2019
Brexit

70% say deal won’t be reached by March 29th - New Brexit Sentiment Survey from Chartered Accountants Ireland  Monday, 11th March 2019  A new survey from Chartered Accountants Ireland published today shows that almost half of business leaders in the Republic of Ireland have little or no plans in place for a no deal Brexit. Despite 60% of Chartered Accountants in the Republic of Ireland saying that Brexit will have a negative impact, only 17% of those respondents said their businesses are fully ready to meet the challenges that Brexit might bring.  Reflecting the current uncertainty, almost half of businesses surveyed have made little or no plans to prepare for Brexit. Among the key findings from a new Brexit Sentiment Survey of Chartered Accountants across all sectors in the Republic of Ireland were: - 69% said that the UK and EU were unlikely to reach a deal by 29 March 2019 44% had little or no plans for a no deal Brexit, 39% had some plans 60% said that Brexit would have a negative impact on their business, 12% said Brexit would have a positive effect 60% said the local business voice was not being heard in the Brexit negotiations Supply chain disruption was the biggest concern, followed by customs administration and then customs duties The survey was also carried out among members of Chartered Accountants Ireland in Northern Ireland and the results are almost identical. Speaking about the study, Brian Keegan, Director of Public Policy and Taxation at Chartered Accountants Ireland, said: “These findings reaffirm that some level of certainty is urgently needed among the business community both north and south of the border.  Without assurances of the future trading landscape, businesses are finding it difficult to put concrete plans in place to prepare for Brexit and many have adopted a wait and see approach.” According to the survey, Chartered Accountants rated supply chain disruption as their biggest concern followed by customs administration and thirdly customs duties. “The businesses we have engaged with and spoken to over the last two years have largely been more concerned about supply chain disruption and customs paperwork than the costs of any potential customs duties.  Many dealing with consumer foodstuffs with a short shelf life, for example, are unclear about how customs checks will take place and say that any delays in clearing customs could be detrimental to their businesses.” said Mr Keegan. The survey also showed that almost 70% of Chartered Accountants in the Republic of Ireland do not believe a Brexit agreement will be reached by 29 March. “It is hard to believe that with less than three weeks to go until 29 March, the UK and EU are still without an agreement. No agreement will result in a hard border on the island of Ireland and this will mean potentially hazardous trading conditions for businesses both north and south of the border. Chartered Accountants Ireland has been urging businesses to examine their supply chains, look at their cash flow and update their knowledge on customs in order to be ready to cope with the prospect of a no deal Brexit.” - ENDS – Notes to editors 1,320 Chartered Accountants responded to the survey which was carried out on 26 February 2019. 821 respondents were based in the Republic of Ireland.   About Chartered Accountants Ireland Chartered Accountants Ireland is Ireland’s largest and longest established professional body of accountants founded in 1888.  The Institute, which is an all-island body, currently represents over 27,000 members around the world.  The Chartered Accountants Ireland Brexit Action Group coordinates extensive lobbying and public information activities to help its members North and South of the border prepare for the departure of the UK from the EU.

Mar 11, 2019
Brexit

A big week of votes is planned for the UK Parliament with the first vote due to take place on the withdrawal bill tomorrow. There is still no concrete sign from the UK or Brussels of any breakthrough on the backstop.  Brexit is now just 18 days away and the UK and Irish tax authorities are continuing their campaigns to get traders ready for a no-deal. The Institute has created a hub for members to read all published guidance from the UK, Irish and EU authorities to help prepare for the possibility of a no-deal Brexit.   HMRC and Revenue continue efforts to get traders to prepare for a no-deal Brexit HMRC has written again to 135,000 UK traders that currently trade outside of the EU outlining changes to customs procedures and VAT for UK-EU trade in the event of a no deal. The letter says that even though UK customs processes for trade with the rest of the world will not change, traders may need to adapt their systems and processes.   HMRC has also written several times to the 145,000 VAT registered UK traders that currently only trade with the EU setting out actions they should take to prepare. The letters also outline the support that is available on gov.uk to help them prepare. Readers are reminded of the EU Exit Partnership Pack that includes step by step guidance on key actions that need to be taken by UK importers and exporters to prepare for a no-deal Brexit.   GOV.UK includes a dedicated ‘Prepare your business for the UK leaving the EU’ tool that ask businesses seven questions about the nature of the trade they carry out before presenting the relevant guidance to inform their preparations. In Ireland, Revenue has the following advice for businesses that trade with the UK: Apply for your customs (EORI) registration or get your agent to apply on your behalf. Ensure you, or an agent on your behalf, have the facility to make a customs declaration. Know the Commodity Code of your goods or products you will import or export. No deal guidance The Institute has created a dedicated hub on its Brexit webpage which collates guidance and information leaflets produced by the UK and Irish governments and the EU to help businesses and people prepare in the event of a no-deal Brexit.  The page will be updated as information is released by the authorities.   You can also read the practical customs guide prepared by the Institute and ICAEW using this link.   Read all our Brexit updates on our Brexit web centre. British Library: Preparing for Brexit webinars The British Library is hosting webinars as a part of a Preparing for Brexit series delivered by BEIS. This is designed to help businesses prepare in the event of leaving the EU on Friday 29 March 2019 without a deal. The topics cover: workforce and people, regulations and standards, digital and data, importing and exporting, business legal requirements and intellectual property. Business Legal Requirements (including audit and accounting matters) – 12:00pm – 1:00pm on 19 March 2019 Regulations and Standards – 10am-11am on 12 March 2019 Digital and Data – 11am-12pm on 14 March 2019 Importing and Exporting – 1:00pm-2:00pm on 18 March 2019 Intellectual Property – 11:00pm-12:00pm on 20 March 2019   

Mar 11, 2019
Brexit

Last week, we looked at what’s contained in the Brexit Omnibus Bill published by the Irish Government.  This week we look at the practical steps you can take to prepare for trade after Brexit; applying for an EORI number. To move goods into or out of the EU you need an Economic Operator and Registration Identification (EORI) number.  Therefore Irish and UK traders who trade with each other will need to apply for an EORI number. HMRC and Revenue use this number to identify you and collect duty on your goods. The number is also used when traders interact with customs authorities in any EU Member State. A short eLearning tool for EORI is available to download from the European Commission website. Applying for an EORI number in the Republic of Ireland You can register for an EORI number on Revenue’s EORI online registration service through My Account or ROS. It is important to note that some traders may have already been automatically registered for an EORI number by Revenue and may not have to apply for one. Back in 2009 when EORI numbers were introduced, Revenue allocated EORI numbers for economic operators that held a customs and excise registration at the time. You can check if you were automatically registered for EORI by accessing the Economic Operator Identification and Registration system. You should insert your existing VAT number prefixed by “IE” under “Validate EORI numbers”. My Account If you access the EORI online registration service via My Account, you should make a request for an EORI registration through My Enquiries. ROS applications If you use ROS to access the EORI online registration service, you need to ensure that you have a valid ROS digital certificate and you need to be registered for customs and excise. If you are not registered for customs and excise, register using the following steps: Click on 'Manage Tax Registrations'. Under 'Registration Options' click on 'Register' beside Customs and Excise. Enter all the details on the eRegistration form. There will be a check box option to declare if you are 'importing/exporting goods to/from the EU'. If this option is not selected, click 'Add To Your Requests'. Under the 'Requests' section, click on 'Submit'. You will now be registered for customs and excise.  Once you have successfully completed this registration, you can then apply for an EORI number using ROS. An EORI number will issue in a few days.  An agent can make an application on your behalf. All details can be found on Revenue.ie and Revenue operates a helpline for EORI queries Applying for an EORI number in the UK Before you apply Check if you need to register for VAT before you apply To apply for an EORI number, you may need you: To apply you may need your: VAT number and effective date of registration - these are on your VAT registration certificate National Insurance number - if you’re an individual or a sole trader Unique Taxpayer Reference (UTR) business start date and Standard Industrial Classification (SIC) code - these are in the Companies House register Government Gateway user ID and password If you need a Government Gateway user ID, use either: the one for your business or organisation your own if you’re applying as an individual If you do not already have a user ID, you’ll be able to create one when you apply. Apply for an EORI number You can apply online to get an EORI number using this link HMRC advises that it takes between 5 and 10 minutes to apply for an EORI number.  Numbers can be issued immediately or could take up to 3 working days if the HMRC needs to carry out more checks. For help or any queries, you can contact the EORI team on 0300 322 7067 Monday to Friday, 8am to 6pm (closed bank holidays). Further details can be found on gov.uk.

Mar 07, 2019
Brexit

With only four days to go until the UK Parliament votes on the withdrawal bill, there is no sign from Brussels of any breakthrough on the backstop.  Brexit is now just 21 days away and the UK and Irish tax authorities are continuing their campaigns to get traders ready for a no-deal. The Institute has created a hub for members to read all published guidance from the UK, Irish and EU authorities to help prepare for the possibility of a no-deal Brexit.   HMRC and Revenue continue efforts to get traders to prepare for a no-deal Brexit HMRC has said that they have written again to 135,000 UK traders that currently trade outside of the EU outlining changes to customs procedures and VAT for UK-EU trade that will happen in the event of a no deal. The letter says that even though UK customs processes for trade with the rest of the world will not change, traders may need to adapt their systems and processes.   HMRC has also written three times to the 145,000 VAT registered UK traders that currently only trade with the EU setting out actions they should take to prepare. The letters also outline the support that is available on gov.uk to help them prepare. Readers are reminded of the EU Exit Partnership Pack that includes step by step guidance on key actions that need to be taken by UK importers and exporters to prepare for a no-deal Brexit.   GOV.UK includes a dedicated ‘Prepare your business for the UK leaving the EU’ tool that ask businesses seven questions about the nature of the trade they carry out before presenting the relevant guidance to inform their preparations. In Ireland, Revenue has the following advice for businesses that trade with the UK: Apply for your customs (EORI) registration or get your agent to apply on your behalf. Ensure you, or an agent on your behalf, have the facility to make a customs declaration. Know the Commodity Code of your goods or products you will import or export. No deal guidance The Institute has created a dedicated hub on its Brexit webpage which collates guidance and information leaflets produced by the UK and Irish governments and the EU to help businesses and people prepare in the event of a no-deal Brexit.  The page will be updated as information is released by the authorities.   You can also read the practical customs guide prepared by the Institute and ICAEW using this link.   Read all our Brexit updates on our Brexit web centre.  

Mar 07, 2019
Brexit

Last week, we looked at the changes that are proposed for claiming back EU VAT suffered by UK businesses in the event of a no-deal Brexit. This week we look at what’s contained in the Brexit Omnibus Bill published by the Irish Government. The Irish Government recently published its Brexit Omnibus Bill, a 15 part series of legislation designed to protect the Irish economy and its citizens in the event of a no-deal Brexit. The Bill prioritises issues that need to be addressed urgently and immediately through primary legislation at national level. Each Part will be commenced by the individual Minister at the appropriate time. Legislative provisions have been put in place to deal with the following areas: Health services:  to enable essential Common Travel Area healthcare arrangements, including reimbursement arrangements, to continue between Ireland and the UK. Industrial development: to help vulnerable enterprises deal with the effects of Brexit by giving Enterprise Ireland extra powers to offer enhanced businesses through investment, loans and Research Development and Innovation grants. Electricity: The Commission for the Regulation of Utilities will be allowed to amend the licences of electricity market participants for one year without recourse to the normal modification and appeal processes, to facilitate the continuing operation of the Single Electricity Market. Student education: Some Irish students studying in the UK and UK nationals studying in the Republic of Ireland currently qualify for SUSI grants. This legislative provision makes sure that, even after Brexit, these arrangements can continue to apply to eligible students. Tax: The provisions cover corporation tax, income tax, VAT (including the postponement of VAT on imports from the UK), capital gains tax, capital acquisitions tax and stamp duty. The provisions extend existing legislative definitions to include the UK, in the event that they are no longer a member of the EU/EEA, in order to allow the continuation of existing arrangements in the immediate future. Read more about these provisions in the Irish tax section. Financial services: legislative amendments to support the decision of the European Commission to grant temporary equivalency in European legislation to the Central Securities Depositories and Central Counterparties based in the UK. The provisions also extend the protections contained in the Settlement Finality Directive to Irish participants in relevant third country domiciled settlement systems. Financial services – Insurance and Reinsurance: to enable UK insurance undertakings and intermediaries to continue to fulfil their contractual obligations to Irish customers for 3 years from Brexit day. Social welfare: the continuation of current benefits allowed under the Common Travel Area arrangements Bus services: a regulatory regime in relation to bus and coach passenger services between Ireland and the UK. Protection of employees: in the event of an employer becoming insolvent under UK law, their employees who work and pay PRSI in Ireland, will continue to be covered by the protections set out in the  Protection of Employees (Employers’ Insolvency)  Act. Extradition: In the event of a no-deal Brexit the European Arrest Warrant system will cease to apply to the UK.  Immigration: Immigration officers, when considering removing or deporting a person from the State, have the power to undertake refoulement consideration (i.e forcible return to the person’s original country). Harbours Act: Seafarers who have a pilot exemption certificate can apply for new certificates in the period leading up to 29 March 2019 even if their existing certificate has not expired. Read the Bill and the explanatory memorandum. Timeline for the passing of the Bill: Week of 25 Feb – Brexit Bill in 2nd Stage in Dáil; Week of 4 March – Brexit Bill in Committee, Report and Final Stage in the Dail; and Week of 11 March – Brexit Bill in Seanad  

Feb 28, 2019