Revenue and HMRC updates

Also published on 15 December (and updated 24 December) is guidance for companies to apply for authorisation for the UK Trader Scheme if they bring goods into Northern Ireland from 1 January 2021, specifically how to get authorised to declare goods they bring into Northern Ireland not ‘at risk’ of moving to the EU so that EU duty will not be payable on those goods, and what to do about goods not ‘at risk’ of moving to the EU from 1 January 2021 (last updated 31 December 2020) You can also find out which goods qualify for unfettered access when moving from Northern Ireland to the rest of the UK.

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Legislation

The HMRC have updated the list bringing together Customs, VAT and Excise EU Exit legislation and Customs notices that have the force of law applicable to UK transition. 

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List of ports and entry summary declarations

The HRMC has published a list of ports using the Goods Vehicle Movement Service from 1 January 2021, and information on entry summary declarations and exporting excise goods to the EU from 1 January 2021. 

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Climate Change Agreements

The HRMC has published information for what you need to report to the HMRC (and why) if you have a CCA and receive more than €500,000 a year in state aid.

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Sector-focused webinars and videos

HMRC have made available recorded webinars, including sector-focused webinars, to support businesses in the new rules and the actions to take.

• Transition Webinars are still available here
• Webinar on business travel and investing or establishing in the EU is now available on demand here

Sign up here to request recordings.

To further support firms, the Business Department has also launched a series of new, on demand videos to help businesses familiarise themselves with the new rules. These launched on 18 January. and The videos cover 18 topic areas, with additional sector signposting for 12 BEIS sectors.Topics include importing and exporting, trade, data, and audit and accounting. Businesses can select which videos to view from the list, or can choose their sector and see videos that are recommended for them.

Alphabetical list of video explainers

1. Businesses and Trade Agreements (not yet available)
2. Businesses Engaged in Emissions Trading
3. Businesses Hiring Overseas Staff
4. Businesses Involved in the Horizon 2020 Funding Service
5. Businesses Involved with Data
6. Businesses Operating Online
7. Businesses Preparing and Auditing Financial Accounts
8. Businesses who Import and Export
9. Businesses Providing Services to EU Markets
10. Businesses Shipping Waste between GB and EU
11. Businesses Working with Intellectual Property
12. Chemical Regulations
13. Moving Goods into, out of, or through Northern Ireland
14. Placing and Selling Goods on the Market
15. REACH Chemical Regulations
16. Recognition of Professional Qualifications
17. Rules of Origin
18. Trade Tariffs 

 

Alphabetical list of sectors (signposting key videos for their sector)

1. Aerospace
2. Automotive
3. Chemicals
4. Civil Nuclear
5. Construction
6. Consumer Goods
7. Electronics and Machinery
8. Energy
9. Life Sciences
10. Metals and Other Materials
11. Retail
12. Services and Investment

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Key updates and developments

Set out below is a selection of the key updates, announcements, developments and/or guidance issued to help businesses and individuals prepare for the post transition period.

On 18 January, the UK Department for Business, Energy & Industrial Strategy published 6 key actions many firms may need to take to avoid any potential disruption to their operations:

1. Goods - if you import or export goods to the EU, you must get an EORI number, make customs declarations or employ an agent to do them for you, check if your goods require extra papers (like plant or animal products) and speak to the EU business you’re trading with to make sure they’re completing the right EU paperwork. There are also special rules that apply to Northern Ireland. Hauliers must obtain a Kent Access Permit and have a negative COVID test before they head to port in Kent

2. Services - if you deliver services to the EU, you must check whether your professional qualification is recognised by the appropriate EU regulator

3. People - if you need to hire skilled staff from the EU, you must apply to become a licensed sponsor

4. Travel - if you need to travel to the EU for business, you must check whether you need a visa or work permit

5. Data - if your goods are protected by Intellectual Property (IP), you will need to check the new rules for parallel exporting IP protected goods from the UK to the EU, Norway, Iceland and Liechtenstein. You risk infringing on IP rights if you do not follow the new rules

6. Accounting and reporting - if your business has a presence in the EU you may need to change how you undertake accounting and reporting to ensure compliance with the relevant requirements

These 6 key actions should act as a guide for every business affected by the new rules, with more detailed, personalised advice available through the checker tool on gov.uk/transition.

General guidance and information

 

• HMRC has advised anyone unable to obtain a national insurance number who needs to register as self-employed and obtain a Unique Taxpayer Reference (“UTR”) to do so by completing an SA1 instead of the usual CWF1. As an interim measure, an individual without a NINO who needs to register a self-employment should do so by completing an SA1 instead of the usual CWF1.
• Guidance on declarations that need to be made for goods UK-based businesses bring or receive into the UK from 1 January 2021 or sent from the UK from 1 January 2021.
• Advice from the Business Secretary for customers and users of IP on how the IP system and the Intellectual Property Office will operate after the end of the transition period.
• Guidance on existing UK trade agreements with non-EU countries.
• Guidance in section two of the guidance on Moving goods under the Northern Ireland Protocol that provides support for businesses engaging in new processes under the Northern Ireland protocol.
• Guidance on export licencing: the UK government is advising exporters with an interest in various sectors to check to see if their items are on the dual-use control list by using the Goods Checker Tool. They can also use the Control List Classification Service on the online export licensing system. Exporters without a licence to export may find their goods stopped by Customs. Exporter with enquiries should contact exportcontrol.help@trade.gov.uk
• What you need to do to comply with regulations on manufactured goods you place on the Northern Ireland market and the market in Great Britain from 1 January 2021.
• Information for public authorities, businesses and other organisations on the outcome for public procurement policy from 1 January 2021
• Details on the UK’s Generalised Scheme of Preferences (GSP): Trading with developing nations from 1 January 2021

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VAT, customs and tax

• How VAT will apply to goods moving between Great Britain and Northern Ireland for individuals and non-VAT-registered businesses has been updated. 
• You can find newsletters from HMRC containing updates and guidance on Community, Common Transit and Transport International Routiers (TIR) here (last updated 7 January 2021).
• HMRC webinars have now launched with ‘Making a Customs Declaration’ (last updated 5 January 2021) and more dates have been added to its customs import declarations webinar about how to complete customs import declarations. HMRC will be launching more webinars shortly and we will let you know once they are live.
• HMRC has sent letters to VAT-registered businesses trading with the EU and/or the rest of the world, highlighting actions they need to take to continue trading with the EU from 1 January 2021. The letters explain what businesses need to do to prepare for new processes for moving goods at the end of the transition period. Also, these actions will not change regardless of the outcome of the Brexit negotiations. View the letters here
• Claim refunds of UK VAT from 1 January 2021 if you're an EU business
• Claim VAT refunds from EU countries from 1 January 2021
• The Customs (Declarations) (Amendment and Modification) (EU Exit) Regulations 2020 has been added to Customs, VAT and Excise UK transition legislation from 1 January 2021, which brings together Customs, VAT and Excise EU Exit legislation and Customs notices that have the force of law applicable to UK transition.
• The list of customs agents and the list of fast parcel operators have been updated who can help submit customs declarations has been updated to 1 January 2021.
• Updated guidance on the zero rate of VAT for the supply of PPE equipment reverting to the standard rate of VAT from 1 November 2020. 
• This page tells you what declarations need to be made for goods you bring or receive into Great Britain or Northern Ireland (published 16 November).
• Applying for grants if your business completes customs declarations for funding for recruitment, training and IT improvements: Information about General Block Exemption Regulations (GBER) is available here.
• A new Cabinet Office Customer Forum is available providing a point of contact for queries across departments https://transition-forum.service.cabinetoffice.gov.uk/
• See also the HMRC series of short videos aimed at helping those businesses brand new to customs:

What is Customs?

What you need to know to bring goods into the UK?

What you need to do to send goods out of the UK?

The customs grant scheme has been changed to allow more people to access the funding and help ensure they are ready to trade with the EU after the transition period ends.

Customs intermediaries – including customs brokers, freight forwarders and express parcel operators – as well as traders who complete their own declarations, are among those who may benefit from the new co-funded training project under General Block Exemption Regulations (GBER). Through the co-funded training project grant, organisations can receive up to 2 million euros where they co-invest as well.

HMRC is also now allowing traders who are new to customs to apply for grants of up to £1,000 per organisation to support the cost of basic customs training. This will help traders understand what is involved in making customs declarations and can help them prepare for when they speak to an intermediary.

Another change HMRC has introduced to the customs grant scheme is that businesses with Authorised Economic Operator (AEO) status who have had a base in the UK for less than 12 months can also now access the grant scheme. This will encourage new entrants to the intermediary market.

The current phase of the customs grant scheme opened for applications on 29 July with a record £50 million investment as part of the measures to accelerate growth of the customs intermediary sector and help meet the increased demand it will see from traders from 1 January 2021.

Grants will be issued on a first come, first served basis and applications will close on 30 June 2021, or earlier if all funding is allocated. Applications for the co-funded training project, trader training and for AEO businesses opened on 16 November 2020. For more information on the scheme and how to apply, see the guidance on GOV.UK.

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Sector-specific guidance

• electronics and machinery sector: (9-point checklist) here.
• consumer goods sector: (13-point checklist)  here.
• automotive sector: 10-point checklist)  here.
• aerospace sector: (9-point checklist)  here.
• science, research and innovation sector: (8-point checklist)  here.
• Financial Services: comprehensive guidance divided into information for customs, and information for financial services providers. View the guidance on the GOV.UK website.
• life sciences sector: (12-point checklist)  here.
• construction sector: (11-point checklist)  here.
• arts, heritage and culture sector: (7-point checklist)  here. See also guidance on the art marketandExporting or importing objects of cultural interest from 1 January 2021.
• telecoms and information services sector: (6-point checklist) here. 
• tourism sector: (6-point checklist)  here. 
• gambling sector: (5-point checklist)  here. 
• civil society sector: (4-point checklist)  here.
• creative industries sector: (6-point checklist)  here
• digital, technology and computer services sectors here.
• sports and recreation sector here.
• media and broadcasting sectors here.
• blood establishments, blood banks and manufacturers of blood products on ensuring the quality and safety of human blood and blood components 
• Regulating medical devices, click here.  

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People-specific guidance

• Updates to official information for UK nationals moving to or living in EU countries, including guidance on residency, healthcare, passports and the Withdrawal Agreement.
• Social security arrangements between the UK and the EU from 1 January 2021: staff guide. This staff guidance explains the social security coordination arrangements between the UK and the EU under the EU Withdrawal Agreement from 1 January 2021.
• Employing EU citizens in the UK: EU Settlement Scheme: community support for vulnerable citizens
• Information for UK nationals living in the EU, EEA EFTA, Switzerland and Ireland, including guidance on residency, healthcare and the Withdrawal Agreement, last updated 31 December 2020

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Chemicals-specific guidance

• Information for the chemicals sector on preparing for the end of the transition period.

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Products-specific guidance

• Guidance on specific product safety and metrology regulations for businesses placing goods on the market in Great Britain and Northern Ireland from 1 January 2021.
• Guidance for the veterinary pharmaceutical industry on how to convert a Centrally Authorised Product (CAP) to a national GB Marketing Authorisation .Centrally Authorised Products conversion explainer
• The UKNI marking is a new conformity marking for products placed on the market in Northern Ireland which have undergone mandatory third-party conformity assessment by a body based in the UK. To find out if you need to use it, and if so, how, click here.

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Food, drink and animals updated guidance   

• Guidance on what you need to do to export or move live animals, products of animal origin and animal by-products from 1 January 2021 has been updated to show rules for ear tagging animals exported from GB to the EU from 1 January 2021.
• Guidance on how to set up a border control post to receive animals, animal products, plants, plant products and wood.
• Food and Drink labelling changes from 1 January 2021 available  here.  
• There is guidance on the documents you will need to transport live animals with regards to exporting or moving live animals and animal products to the EU from 1 January 2021 and importing animals, animal products and high-risk food and feed not of animal origin from 1 January 2021.