What the Brexit Deal means for small companies
UPDATED: Small business owners are relieved that the Brexit deal has been finalized as it means future security.
Although the 1,246-page legal text of the trade and cooperation agreement was not published on Friday afternoon, it does include a chapter on small businesses.
Mike Cherry, national chairman of the Federation of Small Businesses, said, “The work of going through the details of the agreement to see exactly what it means for the small businesses that make up 99 percent of our business world begins now.
> See also: How Brexit will affect your company – Import No. 1
"Not only do we go through the terms and conditions for access to each other's markets, but we are also delighted about the small business chapter, for which we have campaigned and encouraged both sides."
Mr Cherry reiterated his request for £ 3,000 transition vouchers that small business owners can spend on training and advice to help them establish a new trading relationship with the European Union. This would be similar to Ireland and the Netherlands.
Jonathan Geldart, Director General of the Institute of Directors, agreed.
"Whenever possible, changes should be made gradually," said Geldart. "Financial support for SMEs, such as vouchers for professional advice or tax breaks to customize, would help businesses get to the top for the new year."
> See also: How Brexit Will Affect Your Business – Export No. 2
Tony Danker, CBI General Manager, said, “Companies will investigate the details immediately when they can to understand the implications for their businesses, clients and customers. However, immediate government guidance is required in all sectors.
What the Brexit Deal means for small businesses
Even if the white smoke disappears from the chimney of the European Commission in Brussels, small business owners now have nine things to do while trade experts digest the Brexit deal.
Catherine Stephens, Director of International Trade Services at Business West, said, “The new deal doesn't mean companies don't need to take action to prepare for the New Year. When trading with the EU, companies must be prepared to fill out customs declarations. It can be complicated to fill out, and if they contain errors it can create avoidable delays and border costs. "
Business West has created a nine-point guide for completing customs declarations when trading with the EU:
# 1 – Apply for the postponed VAT return
This allows you to defer paying VAT when importing goods. Instead, your import sales tax will be paid on your usual sales tax return.
# 2 – Apply for a Duty Deferment Account
This allows you to postpone the payment of your import duty and the duty can be paid once a month rather than every time you import your goods. Currently, HMRC has waived the need to provide a full customs guarantee and if you qualify you will be given a credit limit of £ 10,000 per month.
# 3 – Check your commodity codes
You need to make sure that you are using the correct commodity code for your goods. There are many repercussions such as financial or criminal penalties if you use the wrong codes.
> See also: Commodity Codes: The Essential Guide
# 4 – Do you have to pay import duties?
Check if your goods may be subject to import duties after January 1, 2021 when you import goods from the EU
# 5 – Register When Trading Northern Ireland
If you are trading with Northern Ireland, register with the TSS Trader Support Service
# 6 – Check if you have a GB EORI number
You cannot trade with the EU if you do not have an EORI number.
> See also: EORI number: what it is and how to get or check one
# 7- Get an XI EORI Number when trading Northern Ireland
Make sure you have an XI EORI number when trading with Northern Ireland. You cannot act without one.
# 8 – Review current trade deals
You need to review the details of any trade agreement with each country to ensure that your goods can be imported using the correct procedures (e.g. correct document to claim preferred origin).
# 9 – Make sure you have a customs broker
Make sure you have a customs broker to handle your import / export declarations from January 1st.
Preparing for Brexit – 6 steps you need to take to prepare