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HMRC urges business owners to make sure they are ready for no deal

Feb 28, 2019

HM Revenue and Customs (HMRC) is urging business owners to prepare now to ensure their businesses can continue to trade with the EU if the UK leaves the EU without a deal.

In the event of a no-deal exit, businesses need to register for an Economic Operator and Registration Identification (EORI) number. UK businesses that have only ever traded inside the EU will not have an EORI number and will be unable to continue trading with the EU without this number. However, HMRC figures show that just 17% of these businesses have registered so far.

In September 2018, December 2018 and January 2019, HMRC wrote directly to 145,000 VAT-registered businesses that only trade with the EU advising them to start their preparations and apply for an EORI number.

There are another estimated additional 95,000 non-VAT registered businesses that also need to take action.

Despite these letters, only 40,973 have registered for an EORI number since October.

To help businesses make import and export declarations, HMRC has made £8 million in funding available for traders and intermediaries to support them with training and IT costs. There is still £3 million remaining of this funding, so there’s still time to put in a bid.

Source: HMRC