Getting Your Business Brexit ready
As we all know, Brexit will formally exit the European Union on 31st December 2020, and it is vital for Irish businesses to prepare for the changes ahead.
The Department of Enterprise has released a Brexit readiness checklist which we recommend consulting in full to ensure that your business is prepared, and to contact your Local Enterprise Office for information and assistance. We have compiled the main points to consider here.
If your business trades with Britain, you will need to take steps to reduce the impact of Brexit on your business and your supply chain.
- Contact your suppliers and logistics carriers in Britain.
- Look into the charges that may apply to you when your product reaches Britain, even as a stop-off.
- Discuss with your Local Enterprise Office.
- Look into the Brexit Loan Scheme to assist with cashflow.
Following Brexit, you will likely be required to comply with new customs obligations. New declarations for both import and export will be necessary. There are a number of steps which can be taken in advance to limit the impact of this change on your business.
- Obtain an EORI number if you have not already – This can be obtained via the Revenue website and will be essential for trade with Britain going forward.
- Decide if you wish to hire an outside customs officer or process customs in-house.
- It may be necessary to VAT register in the UK.
- Ensure that you have a ‘Customs Guarantee’ in place. Authorisation for this may be required from Revenue, and this may provide some security against unforeseen costs.
- Check with your Local Enterprise Office if they provide customs workshops.
Beginning January 1st, Customs Duty will apply to the import of some goods from Britain. Here are some steps you can take now to prepare.
- Classify your goods into the appropriate categories.
- Identify the cost implications customs duty may have on your products.
- Apply to Revenue for a VAT and Duty deferment, which allows you to defer payment to the 15th of the month.
- Review contracts with your suppliers and logistics carriers.
- Assess your accounts department for readiness to deal with these changes and adapt as needed.
There may be new certifications and licenses required for trade with the United Kingdom going forward, and it will be important to ensure that you are compliant with EU rules for trade outside of the union. The below are some steps that can be taken to mitigate these issues.
- Check whether your current licenses and certifications will be valid after the transition period.
- Check that your product meets all required guidelines for export outside of the EU.
Since the result of the Brexit vote, Sterling has been somewhat volatile and is expected to remain so for some time, it is important to consider the impact of this weakened currency on your business.
We recommend consulting with the Revenue website and your Local Enterprise Office for information on further steps that can be taken to ensure that your business is Brexit ready. Let’s get all businesses prepared for Brexit and do what we can to start 2021 off on a good foot.
As always, we are available and happy to help should you require any further information or guidance on any business or financial matters.