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

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
Brexit

The UK Prime Minister had hoped to get a three month extension and the result is shorter than the 12 months preferred by some EU leaders.  Reports emerging from the summit suggest that the French President Emmanuel Macron was in favour of the Halloween extension. However, the deadline can still be shortened if the UK Parliament passes a Brexit deal.   Talks between the Conservative and Labour party continue.  But it does mean that the UK may very well have to contest next month’s European Parliament elections. Emerging at 2:30am following extensive talks, European Council President Donald Tusk had a clear “message to our British friends…. This extension is as flexible as I expected, and a little bit shorter than I expected, but it’s still enough to find the best possible solution. Please do not waste this time.” Theresa May said she was hopeful of getting a Brexit deal before May 22 – meaning the UK wouldn’t have to partake in the upcoming European elections.   “I continue to believe we need to leave the EU, with a deal, as soon as possible….And vitally, the EU have agreed the extension can be terminated when the withdrawal agreement has been ratified … The choices we now face are stark, and the timetable is clear. We must now press on at pace with our efforts to reach a consensus,” she said. The EU had a clear message emerging from the summit - the withdrawal agreement is not up for renegotiation.  There are reports that the UK are considering staying in a customs union with the EU, something Minister for Finance Paschal Donohoe said would be “enormously positive” for Ireland. The UK Parliament must agree on a way forward in the negotiations but the option to revoke Article 50 and effectively reverse Brexit remains on the table.  

Apr 15, 2019
Brexit

Following a nine-hour summit of the heads of state of the EU in Brussels on Wednesday, Brexit has been delayed until 31 October – 7 months later than the original departure date of 29 March 2019.  The UK Prime Minister had hoped to get a three month extension and the result is shorter than the 12 months preferred by some EU leaders.  Reports emerging from the summit suggest that the French President Emmanuel Macron was in favour of the Halloween extension. However, the deadline can still be shortened if the UK Parliament passes a Brexit deal.   Talks between the Conservative and Labour party will continue this week.  But it does mean that the UK may very well have to contest next month’s European Parliament elections. Emerging at 2:30am following extensive talks, European Council President Donald Tusk had a clear “message to our British friends…. This extension is as flexible as I expected, and a little bit shorter than I expected, but it’s still enough to find the best possible solution. Please do not waste this time.” Theresa May said she was hopeful of getting a Brexit deal before May 22 – meaning the UK wouldn’t have to partake in the upcoming European elections.   “I continue to believe we need to leave the EU, with a deal, as soon as possible….And vitally, the EU have agreed the extension can be terminated when the withdrawal agreement has been ratified … The choices we now face are stark, and the timetable is clear. We must now press on at pace with our efforts to reach a consensus,” she said. The EU had a clear message emerging from the summit - the withdrawal agreement is not up for renegotiation.  The UK Parliament must agree on a way forward in the negotiations but the option to revoke Article 50 and effectively reverse Brexit remains on the table. Follow all the Brexit updates on our website.

Apr 11, 2019
Tax

Essential things Irish businesses must now do to begin to cope in the event of a no-deal Come this Friday (12 April), Irish and UK traders could very well be facing a starkly different trading landscape and need to act now to prepare if they have not already done so. In the worst case scenario, the UK will leave the EU this week without a deal and will immediately no longer be a member of the EU.  While there is evidence to show that despite the Brexit uncertainty, businesses are making some preparations for a no-deal scenario, a recent survey of businesses carried out by the Institute shows that almost half of enterprises in both Ireland and Northern Ireland have no plans at all in place in the event that the UK crashes out of the EU without a deal. Irish and UK businesses that trade with each other need to now: Register online with the HMRC or 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.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. 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 Ensure that you have a line of credit to deal with the customs duties that will arise on imports from the UK or Ireland. President of Chartered Accountants Ireland Feargal McCormack said “We are very concerned that a no-deal Brexit is still very much a possibility on 12 April and we are recommending that traders in Ireland and the UK do three relatively straightforward things over the next few days so they have at least have some contingency plan in place”.  “We urge any of our members involved in the political process, no matter what party, to impress upon their elected representatives how dangerous the current situation is for Irish business.” Our Professional Standards team advises that statutory audit firms will be aware of the continued uncertainty regarding the eligibility of certain audit firms to continue to audit Irish entities.  Engagement continues with relevant regulatory authorities in both jurisdictions and firms will be updated of developments via eNews, the Professional Standards section of the Institute website, and direct communication with firms. Our survey results in the Republic of Ireland can be found here and in Northern Ireland can be found here. You can read about how to prepare for a no-deal Brexit on the no-deal hub on our Brexit website.

Apr 08, 2019
Tax

By the end of this week, Brexit will either be happening or be delayed. Michel Barnier is in Dublin today for Brexit talks and Revenue officials help truck drivers at Irish ports. The EU’s chief Brexit negotiator, Michel Barnier, will meet the Taoiseach, the Tánaiste, and the Minister for Finance at Government Buildings in Dublin today.  The meeting takes place ahead of the EU summit which takes place in Brussels on Wednesday.  The EU 27 must decide on Wednesday whether to grant the UK an extension to Friday’s Brexit deadline.  The current deadline is due to expire at 11pm on Friday 12 April.  The Taoiseach has been clear that he is willing to grant a second extension to the UK, as long as the UK Prime Minister Theresa May does not try to revisit the withdrawal agreement and instead puts forward a clear plan.  Talks continue in the UK between the Conservatives and the Labour MP’s in an attempt to reach a common ground. Revenue officials give advice to truck drivers at Irish ports Revenue officials were at Dublin and Rosslare Ports last week to provide truck drivers with customs information to help deal with possible congestion and delays for trucks coming in and out of Irish ports from or to the UK. This practice will continue over the coming weeks in an attempt to ensure that truck drivers are aware of the changes that Brexit will mean for their journeys.   Read Revenue’s statement on this engagement.  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.

Apr 08, 2019
Brexit

Essential things Irish businesses must now do to begin to cope in the event of a no-deal Come 12 April Irish and UK traders could very well be facing a starkly different trading landscape and need to act now to prepare if they have not already done so. In the worst case scenario, the UK will leave the EU next week without a deal and will immediately no longer be a member of the EU.  While there is evidence to show that despite the Brexit uncertainty, businesses are making some preparations for a no-deal scenario, a recent survey of businesses carried out by the Institute shows that almost half of enterprises in both Ireland and Northern Ireland have no plans at all in place in the event that the UK crashes out of the EU without a deal. Irish and UK businesses that trade with each other need to now: Register online with the HMRC or 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.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. 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 Ensure that you have a line of credit to deal with the customs duties that will arise on imports from the UK or Ireland. President of Chartered Accountants Ireland Feargal McCormack said “We are very concerned that a no-deal Brexit is still very much a possibility on 12 April and we are recommending that traders in Ireland and the UK do three relatively straightforward things over the next few days so they have at least have some contingency plan in place”.  “We urge any of our members involved in the political process, no matter what party, to impress upon their elected representatives how dangerous the current situation is for Irish business.” Our Professional Standards team advises that statutory audit firms will be aware of the continued uncertainty regarding the eligibility of certain audit firms to continue to audit Irish entities.  Engagement continues with relevant regulatory authorities in both jurisdictions and firms will be updated of developments via eNews, the Professional Standards section of the Institute website, and direct communication with firms. Our survey results in the Republic of Ireland can be found here and in Northern Ireland can be found here. You can read about how to prepare for a no-deal Brexit on the no-deal hub on our Brexit website.

Apr 05, 2019