Top tips for businesses preparing for Brexit

With the end of the Brexit transition period less than 30 days away, there are certain actions you need to take now to make this as smooth as possible. 

While a recent British Chambers of Commerce survey found that only 51% of businesses surveyed had taken the necessary steps to prepare, we want to make sure your business feels confident to trade with the EU come January.

1. Get your customs declarations prepared 

One of the most crucial ways you can prepare for exporting to or importing from the EU is to make sure you have a customs broker in place. Regardless of whether a deal is reached, businesses need to act now to get prepared or risk disruption and unnecessary costs at the border on January 1st. 

Companies can register their interest for ChamberCustoms, a service for importers and exporters which will ensure that customs clearance is accurate, timely and avoids costs through delays or errors. 

Completing them can be complicated and time consuming so most businesses obtain an intermediary to help them.However, if you would prefer to complete them yourself, Business West is offering training for companies to highlight what they need to know to complete them correctly. 

2. Delay your VAT accounting

Businesses can apply for postponed VAT accounting. This allows you to defer paying VAT upon importation of goods. Instead, your import VAT will be paid on your usual VAT return. You can apply for this here. 

3. Apply for a Duty Deferment Account

This allows you to defer paying your import duty. Duty can be paid once a month, rather than every time you import your goods. Currently, HMRC have wavered the need to put up a Customs Comprehensive Guarantee so if you qualify, they will give you a £10,000 credit limit per month. You can apply here.

4. Ensure you have the correct commodity codes

You must ensure that you are using the correct commodity code for your goods. If they are incorrect this could cause delays and you could face financial or criminal penalties. You can check that you have the correct commodity codes here. 

5. Check duties payable

You should check whether import duty may be payable on your goods after 1st January if you are importing goods from the EU. 

6. Review the regulations for trading with Northern Ireland  

If trading with Northern Ireland, you need to ensure you have an XI EORI number and you will not be able to trade without one. You can apply for one here. You can also register on the TSS Trader Support Service. This will guide you through the changes resulting from the implementation of the Northern Ireland Protocol. 

7.  Make sure you have an EORI number

You will need an EORI number that starts with GB to trade with the EU. You can apply here to get one and you will not be able to trade with the EU without it. Bear in mind that it can take a week to get one. You won’t usually need one if you only provide services or move goods between Northern Ireland and Ireland.

8. Check current trade agreements 

You need to check the detail of the trade agreements with each country you are trading with to ensure your goods can be imported using the correct procedures (for example – using the correct document to claim preferential origin). You need to be in the UK to use this service. If you’re a UK company overseas, contact the Department for International Trade.

Where to find more information

We have put together guides for both importers and exporters on how to get prepared for changes to trading rules on 1st January 2021, to try and make the transition to the New Year as smooth as possible.

You can also visit the award-winning Trading through Brexit hub to receive regular updates and advice.