Brexit

Preparing your business in the case of a No Deal Brexit

Currently the UK is negotiating a Withdrawal Agreement with the EU that needs to be ratified by the UK, i.e. it needs to be voted for in Parliament. If the Withdrawal Agreement is ratified before the 30th March 2019, then EU law will cease to apply to and in UK on 1 January 2021, i.e. after a transition period of 21 months, with a phased approach to changes over the transition period. 


If the Withdrawal Agreement is not voted through parliament, there will be no transition period and EU law will cease to apply to and in the UK as of 30th March 2019. This is referred to as the “no deal” scenario.  Broadly for trade it would mean that UK businesses will have to apply customs, excise and VAT procedures to goods traded with the EU in the same way that already applies for goods traded outside of the EU. The same would apply for immigration. It is important that businesses take a proactive approach to understanding the implications, and therefore government has published a number of documents for businesses to prepare.

 

Recommended preparation for “No Deal” scenario

GENERAL

Information regarding changes at the UK border in the event of a no-deal Brexit
www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit

Mayor of London Brexit resource hub: www.london.gov.uk/press-releases/mayoral/mayor-backs-business-with-new-brexit-hub & www.growthhub.london/brexithub/

TALENT

  1. Passport rules for travel to Europe after Brexit in the event of a No Deal Brexit: UK passports with less than six months to run will not be accepted for travel in the Schengen area - www.gov.uk/government/publications/travelling-to-the-eu-with-a-uk-passport-if-theres-no-brexit-deal
  2. UK Settlement Scheme: www.gov.uk/settled-status-eu-citizens-families?step-by-step-nav=0c79b832-75de-4854-8154-d62774a8dfb8
  3. Home Office Guidance: www.gov.uk/government/news/government-outlines-no-deal-arrangements-for-eu-citizens 

TRADE

  1. eCommerce: www.gov.uk/government/publications/ecommerce-eu-exit-guidance 
  2. VAT for businesses in the event of a No Deal Brexit: www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal
    See page 25 of the DIT presentation: You will still be able to use the EU VAT registration number validation service, but UK VAT registration numbers will no longer feature on it. HMRC is developing a system to validate UK VAT numbers should there be a no deal.
  3. International VAT guidelines: www.oecd.org/ctp/international-vat-gst-guidelines-9789264271401-en.htm
    EORI numbers (for businesses trading with the EU who wish to continue trading in the event that the UK exits the EU without a deal): www.gov.uk/guidance/get-a-uk-eori-number-to-trade-within-the-eu#information-youll-need-to-apply-for-an-eori-number 
  4. Customs procedures in the event of a No Deal Brexit: www.gov.uk/guidance/customs-procedures-if-the-uk-leaves-the-eu-with-no-deal
    Imports into the EU from outside the EU: www.gov.uk/guidance/importing-goods-from-outside-the-eu
    See page 7 of the DIT Presentation for the position in relation to duty: Goods traded between the UK and the EU after 11pm on 29 March 2019 will be subject to the same requirements as third country goods, including the payment of duty and import and export declarations. For UK exports arriving at the EU border, the EU will require payment of customs duty at the rate under the EU’s Common Customs Tariff. 
  5. Supply chains: See page 47 of the DIT presentation for supply chain impacts, p100 for information about changes to transit systems and p113 for information about warehouse storage.

INTELLECTUAL PROPERTY

  1. IP and Brexit (the facts) guidance - www.gov.uk/government/publications/ip-and-brexit-the-facts
    Patents: www.gov.uk/government/publications/patents-if-theres-no-brexit-deal
    Trademarks and Designs: www.gov.uk/government/publications/trade-marks-and-designs-if-theres-no-brexit-deal/trade-marks-and-designs-if-theres-no-brexit-deal
    Copyright: www.gov.uk/government/publications/copyright-if-theres-no-brexit-deal/copyright-if-theres-no-brexit-deal
    Exhaustion of rights - the UK will continue to recognise the EEA exhaustion regime, but there is no guarantee of reciprocation from the EU: www.gov.uk/government/publications/exhaustion-of-intellectual-property-rights-if-theres-no-brexit-deal 

FUNDING

  1. eCommerce: www.gov.uk/government/publications/ecommerce-eu-exit-guidance
  2. Horizon 2020 funding in the event of a NDB: www.gov.uk/government/publications/ecommerce-eu-exit-guidanc 

DATA

  1. General guidance in the event of a No Deal - ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-if-there-s-no-brexit-deal/
  2. Six steps for businesses to take to prepare for a No Deal Brexit - ico.org.uk/media/for-organisations/documents/2553958/leaving-the-eu-six-steps-to-take.pdf