In October 2023, HMRC announced that the 31 October 2023 deadline for the end of the VAT margin scheme for second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 was being extended to 30 April 2024. This six-month extension followed extensive lobbying from Chartered Accountants Ireland in September and October 2023. We are now issuing a reminder that the extended deadline of 30 April 2024 is in just over two and half months.   This means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin. Businesses affected should check how such stock is selling – please contact us to discuss if this vehicle stock continues to be slow-moving. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is also available and the UK Government has provided a range of resources which aim to provide support as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 (see below for details). On the Northern Ireland front, the return of the Northern Ireland Assembly has resulted in a new committee being formed, the Windsor Framework Democratic Scrutiny Committee.   Resources to assist with new UK import controls  The UK Government has provided a range of resources which aim to provide support, help, and guidance as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 as part of the first phase of its Border Target Operating Model (“BTOM”). These are as follows:  Details of key contacts which can be used for urgent border issues relating to health certification and pre-notification;  Information on the UK Government’s approach to compliance and enforcement in respect of the BTOM;  An email from HMRC providing guidance on the customs requirements to move goods from Northern Ireland to Great Britain through Ireland; and  The latest Cabinet Office Borders Bulletin which contains important Border Target BTOM guidance for businesses.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Software developers providing customs declaration software;  Known error workarounds for the Customs Declaration Service (CDS);  Importing SPS controlled goods that interact with ALVS;  How to apply for a repayment of import duty and VAT if you've overpaid (C285);  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Bringing commercial goods into Great Britain in your baggage;  Taking commercial goods out of Great Britain in your baggage;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; and  Notices made under the Customs (Export) (EU Exit) Regulations 2019. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Office Borders bulletins are also available. HMRC has also asked us to advise that the UK intends to open the Import One Stop Shop Scheme for businesses established in Northern Ireland for registration from 1 March 2024. Full guidance is due to be published soon. And finally, Saturday 3 February 2024 saw the return of the Northern Ireland Assembly after a two-year absence. Deal with DUP sees return of Northern Ireland Assembly  Last week the DUP and UK Government reached a deal which culminated on Saturday in the return of the Northern Ireland assembly. After the deal was announced earlier in the week, the UK Government published the accompanying Command Paper and associated documents, including legislation, which sets out more detail. The agreement and corresponding legislation were then debated in Parliament.  Essentially, the Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024 will amend the UK Internal Market Act 2020 in order to provide protection in law against exit procedures on goods moving from Northern Ireland to Great Britain. The regulations amend the Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020 to ensure that unfettered access benefits Northern Ireland traders only, not businesses which may divert goods to Northern Ireland to obtain the same benefit.   The Institute expects UK Government officials to provide more information in due course on what this specifically means for traders and will advise accordingly in Chartered Accountants Tax News in future.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  CDS Declaration Completion Instructions for Imports;  Appendix 23 Imports: Declaration Category Data Sets;  Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Receive goods into and remove goods from an excise warehouse (Excise Notice 197);  Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text;  Simplified Procedures Exclusions List of Procedure and Additional Procedure Codes for exports  CDS Declaration Completion Instructions for Exports;  Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes;  Appendix 24: Declaration Category Data Set; and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is available. We remind you that the first phase of the UK’s Border Target Operating Model for imports into Great Britain commences later this week from 31 January 2024. And finally, the conclusions of last year’s 2023 Civil Society Forum (“CSF”) between the UK and the EU have been published (Chartered Accountants Ireland participates in the UK Domestic Advisory Group which feeds into the annual UK and CSF meeting). UK Border Target Operating Model (“BTOM”) first phase commences from 31 January 2024  In just two days’ time, the UK’s BTOM commences when new border requirements come into effect when importing certain commodities, including some food, into Great Britain. This marks the start of the introduction of the UK’s new BTOM. Two reminder emails have been sent to us by the UK Government (one from HMRC and one sent on behalf of the Department for the Environment, Food and Rural Affairs) setting out the changes in more detail. You can also read more about the first phase of the BTOM in an article in Accountancy Ireland’s Briefly.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Bringing commercial goods into Great Britain in your baggage; Taking commercial goods out of Great Britain in your baggage; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Declare commercial goods you’re taking out of Great Britain in your accompanied baggage or small vehicles; Report payments and view your allowance for non-customs state aid and customs duty waiver claims; What you can do if things are seized by HMRC or Border Force; The Taxation (Cross-border Trade) (Miscellaneous Amendments) Regulations 2024 and The Ship’s Report, Importation and Exportation by Sea (Amendment) Regulations 2024; Customs declaration completion requirements for Great Britain; Search the register of customs agents and fast parcel operators; Customs Declaration Service communication pack; Appendix 21: Import Declaration Category Data Sets; and Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS).

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available and HMRC has sent an email about the impact of industrial action on 15 March on goods movements. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Apply for a certificate confirming an employee pays UK National Insurance when working abroad (CA3822); Check simplified procedure value rates for fresh fruit and vegetables; High risk food and feed of non-animal origin (HRFNAO): official certificates; Apply for approval to be part of the Registered Consignee scheme in Northern Ireland; Apply for approval to be a tax representative in Northern Ireland; Apply for an Advance Origin Ruling; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Notices made and draft notices to be made under the Taxation (Cross-border Trade) Act 2018; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Customs Declaration Service communication pack; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; and Manually arrive your goods in the UK.    

Akriti Gupta, Advocacy and Voice writes: There are less than eight weeks to go to the 31 October Brexit deadline. According to recent reports, 70 per cent of smaller businesses believe that Brexit will adversely impact their business, affecting not only on trade, but business sentiment and investment as well. Ireland is a small open economy, heavily reliant on the UK market as its trade-testing ground. Small businesses that trade with the UK will be affected by supply chain disruption, currency risk, trade tariffs and the requirement to operate within dual regulatory frameworks; the principal risk is the disruption of any continued trade post-Brexit. Practitioners need to liaise with their clients on Brexit-related issues now if they have not already done so. With Brexit timelines still not established and future business models remaining unclear, smaller businesses and their professional advisers are strongly advised to consider the following five points:  1. Assess and develop customs capacity We are encouraging businesses across Ireland and the UK which are currently trading with each other to ensure that they can continue to do so post-Brexit. To do this, they must understand the rules that will apply for importing and exporting. While some businesses have experience of the customs formalities required to import and export outside of the EU, for many, particularly the smaller business, it will be their first exposure to them. All business should first apply for a customs registration, i.e. an Economic Operator Registration and Identification Number (EORI). It takes between three and five minutes online to acquire this (see below). Statistics from Revenue and HMRC suggest that thousands of small businesses on the island of Ireland have not applied for one; such business should be encouraged to acquire this without delay. Regardless of whether customs duties apply to goods moving between Ireland and the UK and the UK and the EU, customs declarations must be submitted to Revenue and HMRC respectively. Businesses should also use the time between now and 31 October to improve their knowledge of customs procedures, and close off any gaps in their customs knowledge that could prevent them from completing customs returns and declarations necessary to keep goods moving. Businesses will need to have customs expertise and relevant software to file these declarations, or should hire an agent to do this on their behalf. It is important to remember that tax authority officials will check that the proper declarations are in place; goods will be detained at ports and borders if they are not. There are various government supports to help do all of this. 2. Review your supply chain and market Tariff barriers and border control will cause delayed investment and barriers to trade for small businesses. Businesses must conduct a SWOT analysis of their existing supply chain and consider alternative suppliers and markets outside the UK. We would also recommend speaking to all customs agents and goods transport services as there will also be changes to transportation and logistics between Ireland, the UK and other EU countries. Post-Brexit, businesses that use the “landbridge” will face new rules when using the customs transit procedure, causing delays that will especially impact goods with a short shelf-life. Businesses should consider applying to Revenue/HMRC to avail of customs supports which may allow goods to be moved in an easier manner.  3. Review all your certification, regulation and licencing It is essential that businesses check that their products or services are fully compliant with all relevant regulation for sale on the UK or EU market post-Brexit. Businesses in highly regulated sectors such as medical device manufacturing, construction and transportation must be particularly sure that their registrations, certifications and licensing are still valid. Where appropriate, they will need to ensure that their UK supplier has appointed an EU-based authorised regulator, as EU registrations issued to UK companies prior to Brexit may no longer be valid.  4. Manage currency and cash flow Volatility in currency markets, particularly around the euro/sterling exchange rate, will present a key challenge for businesses post-Brexit. It is imperative for both importers and exporters to assess their currency exposure. Both importers and exporters should hedge their future transactions to give themselves certainty and a concrete base from which to price their goods and services. Businesses should also be availing of government supports to help manage cash flow and mould their business plans accordingly. One such government support is the Brexit loan schemes; however, only ten per cent of these loan schemes have reportedly been accessed. The Irish Government is now communicating via emails, letters and customs workshops to smaller businesses to encourage them to avail of this facility in order to help them prepare. In the UK, HMRC has stated that it will issue EORI numbers to most VAT-registered businesses, while also making available additional funding to support businesses with the costs of making customs declarations. Businesses based in, or with a branch in, the UK can apply for this funding ahead of the UK leaving the EU. 5. Protect and inform staff The responsibility to check potential visa requirements for staff, and the recognition of professional qualifications and licences required to practice, remains with the employer. Where relevant, businesses must account for these requirements and keep their staff informed of any developments. With a talent shortage in many areas, businesses must invest in learning and development for staff as a priority. In addition to taking the above steps, smaller businesses and their professional advisers are strongly encouraged to attend all possible government events and working groups, and ensure that they are maximising government-run Brexit preparation programmes and supports. Read all our updates in our Brexit web centre at https://www.charteredaccountants.ie/brexit and our page dedicated to no-deal Brexit planning at https://www.charteredaccountants.ie/knowledge-centre/brexit/no-deal-Brexit-planning.