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

Registering for an EORI number is just the first step to prepare for Brexit In order to continue to trade with the UK after Brexit, Chartered Accountants Ireland is urging Irish businesses to assess whether or not they have gaps in customs knowledge that could prevent them from trading with the UK post Brexit.    Regardless of whether customs duties apply, in order to move goods to, from and through the UK, customs declarations must be submitted to Revenue. Traders will need to have customs expertise and software to file these declarations; otherwise they will need to hire an agent to do this on their behalf.   Director of Public Affairs, Dr Brian Keegan said “Regardless of the form Brexit will take, Irish traders need to file customs returns before they can move their goods to, from or through the UK.  To complete the returns, traders need to know the goods classification number or commodity code, the customs value of goods and the origin of the goods to determine the amount of any duty payable.  Otherwise goods will be detained at ports and borders because Revenue officials will check that the proper declarations are in place. We are hearing about a critical shortage of customs expertise in the market.” Revenue estimates that customs declarations are expected to increase from 1.4 million to 20 million per year once the UK leaves the EU.   Dr Keegan said “Revenue has hired additional staff to deal with customs declarations and checks and businesses need to be proactive in their preparations to be able to complete paperwork. While, some traders are experienced in the customs formalities required to import and export outside of the EU, it will be a first for many other businesses, particularly the smaller enterprises.  We are urging these businesses to use the time between now and 31 October to upskill in the area of customs. ” While customs knowledge is critical, obtaining a customs registration or an EORI number is the first step that businesses must take to be able to continue to trade with the UK after Brexit.  Latest registration statistics from Revenue suggest that thousands of small traders have not applied for an EORI and these are the businesses that will be most affected by Brexit.  “Getting an EORI number takes three minutes and should be the starting point in terms of their plans but by no means the only thing they should do. Businesses need to look at customs software, get familiar with commodity codes and think about who will do the customs administration,” said Dr Keegan.  Regardless of the form Brexit will take, Irish businesses must do the following to prepare and they must do that now: Register online with Revenue for an EORI number – it takes a few minutes to apply and a number should issue immediately or within 3 working days if checks are needed Become familiar with the new customs administration, know your commodity code. Decide whether you will do the customs administration yourself or whether you need to hire a customs agent.If you do the customs yourself, you need to have computer facilities and software to do this to access Revenue’s Automated Entry Processing (AEP) system. Notes to editors 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.  In Ireland, you can register for an EORI number on Revenue’s EORI online registration service through My Account or ROS. In the UK, you can apply online to get an EORI number on gov.uk. Automated Entry Processing (AEP) system is Revenue’s electronic system, which handles the validation, processing, duty, accounting and clearance of custom declarations. 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. References: Dr Brian Keegan, brian.keegan@charteredaccountants.ie or Mob: +353 87 234 7329

Jul 23, 2019
Brexit

This week we take a look at Revenue’s intensive Brexit engagement with Irish businesses, Institute calls for clarity over border checks as well as Michel Barnier’s warning to the UK that they will have to face the consequences of a no deal Brexit. Revenue ramps up Brexit engagements with Irish traders Revenue has vowed to increase engagement with Irish businesses trading with the UK, with the main focus being adopting preparedness measures such as EORI registration, numbers for which are still low. In a recent press release Revenue warned that having a customs registration, otherwise known as an EORI number, is only the first step in being able to trade with the UK post Brexit. At a minimum, every business should also ensure that they have the facility to make customs declarations or have plans to engage a customs agent. Cróna Clohisey, Manager in Advocacy & Voice, reiterated this point last week on Morning Ireland on RTÉ News (at 21 mins), RTÉ radio, and RTÉ.ie  where she also called for immediate clarity on the locations of border customs checks to enable businesses to plan for Brexit. These comments were then put to Minister for Finance Paschal Donohoe on the RTÉ’s Morning Ireland who said plans would be announced closer to the October deadline. Get ready for Brexit regardless of the outcome As the 31 October Brexit deadline approaches and regardless of the outcome of negotiations, Chartered Accountants Ireland is reminding Irish businesses that trade with the UK that they need to now: Register online with Revenue for an EORI number – it takes a few minutes to apply and a number should issue immediately or within 3 working days if checks are needed.Read more about the EORI number. Inform your customers in the UK (or further afield if you are using the UK as a land bridge) that they may experience delays in receiving your product because of supply chain disruption Familiarise yourself with the new customs administration. Find out what returns you might need to apply. Figure out whether you will do the customs administration yourself or whether you need to hire a customs agent.If you do the customs yourself, you need to have computer facilities and software to do this.Read our customs guide for accountants. Ensure that you have a line of credit to deal with any customs duties that might arise on imports from the UK. Check the checklists The Department of Business, Enterprise and Innovation have released a number of Brexit preparedness supports, including the Brexit preparedness checklist and the Getting Business Brexit Ready guide. For the full range of supports for businesses, visit the Department’s website Revenue has a dedicated webpage to help with Brexit preparations.  Visit revenue.ie/brexit  Backstop must form part of the Withdrawal Agreement In conversation with the BBC, Tánaiste Simon Coveney reiterated the Irish government’s stance on Brexit, saying the decision for a no-deal Brexit will be a UK decision, and not one made by Ireland or the EU. He maintained the backstop can be avoided by negotiation, but that it needs to be part of the Withdrawal Agreement. Amidst warnings of the Irish economy overheating, he also said such a scenario would “fundamentally disrupt” the all-island economy. UK Brexit developments While the process to decide the UK’s next Prime Minister approaches a conclusion, the EU’s chief Brexit negotiator, Michel Barnier, has warned the UK will have to “face the consequences” of a no-deal situation.  Speaking on the BBC, Mr Barnier said that the withdrawal agreement negotiated by Theresa May was the only way to leave the EU in an orderly fashion.  This statement comes at a time when the Office for Budget Responsibility has said that the UK will fall into recession next year if there is a no-deal Brexit, with the economic growth set to fall by 2 percent by the end of 2020. The UK parliament's Committee on Exiting the European Union has also warned in a report issued this morning that a no-deal Brexit would lead to severe disruption to the UK economy across key sectors and put many jobs and livelihoods at risk.

Jul 22, 2019
Brexit

This week we take a look at Revenue’s intensive Brexit engagement with Irish businesses, calls for clarity over border checks as well as Michel Barnier’s warning to the UK that they will have to face the consequences of a no deal Brexit. Revenue ramps up Brexit engagements with Irish traders Revenue has vowed to increase engagement with Irish businesses trading with the UK, with the main focus being adopting preparedness measures such as EORI registration, numbers for which are still low. In a recent press release Revenue warned that having a customs registration, otherwise known as an EORI number, is only the first step in being able to trade with the UK post Brexit. At a minimum, every business should also ensure that they have the facility to make customs declarations or have plans to engage a customs agent. Cróna Clohisey, Manager in Advocacy & Voice, reiterated this point yesterday morning on RTÉ News (at 21 mins), RTÉ radio and RTÉ.ie where she also called for immediate clarity on the locations of border customs checks to enable businesses to plan for Brexit. These comments were then put to Minister for Finance Paschal Donohoe on the same programme who said plans would be announced closer to the October deadline. Get ready for Brexit regardless of the outcome As the 31 October Brexit deadline approaches and regardless of the outcome of negotiations, Chartered Accountants Ireland is reminding Irish businesses that trade with the UK that they need to now: Register online with Revenue for an EORI number – it takes a few minutes to apply and a number should issue immediately or within 3 working days if checks are needed. Read more about the EORI number. Inform your customers in the UK (or further afield if you are using the UK as a land bridge) that they may experience delays in receiving your product because of supply chain disruption Familiarise yourself with the new customs administration. Find out what returns you might need to apply. Figure out whether you will do the customs administration yourself or whether you need to hire a customs agent.If you do the customs yourself, you need to have computer facilities and software to do this. Read our customs guide for accountants. Ensure that you have a line of credit to deal with any customs duties that might arise on imports from the UK. UK Brexit developments While the process to decide the UK’s next Prime Minister approaches a conclusion, the EU’s chief Brexit negotiator, Michel Barnier, has warned the UK will have to “face the consequences” of a no-deal situation.  Speaking on the BBC, Mr Barnier said that the withdrawal agreement negotiated by Theresa May was the only way to leave the EU in an orderly fashion.  This statement comes at a time when the Office for Budget Responsibility has said that the UK will fall into recession next year if there is a no-deal Brexit, with the economic growth set to fall by 2 percent by the end of 2020. The UK parliament's Committee on Exiting the European Union has also warned in a report issued this morning that a no-deal Brexit would lead to severe disruption to the UK economy across key sectors and put many jobs and livelihoods at risk. Building hope: Home Building Finance Ireland publishes half-year update  Home Building Finance Ireland (HBFI), the body charged with funding the construction of new homes in Ireland published its half-year update earlier this week. The body which started operations in January of this year reported: Over 30 full funding applications have been received by HBFI €41m in commercial loans have been made to home builders, translating to 228 units 92 percent of full applications have been made from outside of Dublin Projects range in size from 10 units to 73 units HBFI has the ability to fund delivery of up to 7,500 units over a five-year period Commenting on the update, Minister for Finance, Paschal Donohoe said “The Government is taking the necessary steps to ensure that Ireland has a fully functioning housing market and HBFI will play an important part in facilitating the achievement of this aim.” SME Credit premium halved As a part of the Government’s Brexit support package, the Government announced earlier this week that the SME Credit Guarantee Scheme premiums have been reduced from 1 percent to 0.5 percent.  The Credit Guarantee Scheme supports SMEs who under normal lending criteria are unable to get bank funding. This reduction in cost aims to support SMEs in addressing challenges to growth and productivity. This initiative comes in the wake of the Future Jobs initiative’s new SME policy development. Read all our updates in our Public Policy webcentre.

Jul 18, 2019
Brexit

Irish businesses that trade with the UK can do 4 things to prepare for Brexit now regardless of the outcome on 31 October 2019: Register online with Revenue for an EORI number – it takes a few minutes to apply and a number should issue immediately or within 3 working days if checks are needed. Inform your customers in the UK (or further afield if you are using the UK as a land bridge) that they may experience delays in receiving your product because of supply chain disruption Familiarise yourself with the new customs administration and tariffs (should they apply). Find out what returns you might need to file with Revenue and if tariffs apply, get a sense of how much extra your imports and exports will cost. Figure out whether you will do the customs administration yourself or whether you need to hire a customs agent.If you do the customs yourself, you need to have computer facilities and software to do this. Ensure that you have a line of credit to deal with any customs duties that might arise on imports from the UK.

Jul 17, 2019
Brexit

The Department of Business, Enterprise and Innovation in conjunction with the Consultative Committee of Accounting Bodies (CCAB-I) is hosting morning information sessions in Cavan and Monaghan for local accountants and their clients on steps that they should take to prepare for Brexit.  Register for the Cavan event on Thursday 4 July or Register for the Monaghan event on Monday 8 July. 

Jun 24, 2019
Brexit

After a few weeks of relative quiet on the Brexit front, we are back this week with our Brexit Bulletin with the news that UK Prime Minister Theresa May will resign as leader of the Conservative Party on 7 June.  Earlier this week, she had made a plea to MPs to save her Brexit deal saying she has “tried everything” to get an agreement through and it was with "deep regret" that she could not find consensus in the Parliament.    During her embattled speech earlier this week, Theresa May made a last-minute appeal to MPs to agree to her Brexit plan, promising that she will give them a vote on whether to call another referendum to ratify the UK’s departure from the EU.  However her plea has fallen on deaf ears and that plan has now been abandoned with the announcement of her resignation this morning.  The process to find a new leader (who will automatically become Prime Minister) will begin on 10 June and Mrs May will remain as Prime Minister until a new leader is found.  The new leader will then have to seek consensus from MPs to move Brexit forward.   No –deal planning You can read how to prepare for a no-deal Brexit on our Brexit webcentre.

May 23, 2019