No-deal Brexit still not fully off the table

Apr 08, 2019

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:

  1. 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.
  2. 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
  3. 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.