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HMRC And EORI: The Brexit Edition Of The Agent Update

Welcome to mythbusters ...

Click here to view a mobile version of this blog post  


HMRC have published an Economic Registration and Identification number (EORI) mythbuster. An EORI number is a unique Identifier for businesses trading goods internationally ...

You'll need an EORI number to trade with the EU after Brexit!

You'll need an EORI number to trade with the EU after Brexit!

copyright: grooversyd / 123rf

Getting a UK EORI number is the first step to being ready for Brexit. If businesses import, HMRC recommends that they register for easy import procedures known as Transitional Simplified Procedures or just TSP for short.

"If traders are new to customs processes, this likely
to be the best option for them!"

TSP will give them extra time to send in customs documentation and pay any import duties when they import goods from the EU to the UK. Not everyone is eligible, and businesses will need to check online first to see if they can register. HMRC have allocated £16m funding to help businesses train staff in making customs declarations.

Here is a summary of some of the main points in the update:

  • In the event the UK leaves the EU without an agreement, there may be changes for UK employers who have people working in the EU, the EEA or Switzerland. Currently, the EU Social Security Coordination Regulations ensure employers and their workers only need to pay social security contributions (such as National Insurance contributions in the UK) in one country at a time.

    However, if we leave without an agreement, the coordination between the UK and the EU will end. This will mean that your employees working in the EU, the EEA or Switzerland may need to make social security contributions in both the UK and the country in which they are working at the same time.

    If your employee is a UK or Irish national working in Ireland, their position will not change after Brexit, as they are covered under the international agreement signed by the UK and Ireland in February 2019. You, as their employer, won't need to take any action.

    The UK Government is working to protect UK nationals by seeking reciprocal arrangements with the EU and its Member States to maintain existing social security coordination for a transitional period until 31 December 2020. Individuals in the scope of these arrangements will only pay social security contributions in one country at a time.

  • If you are planning to travel to or from EU countries after the UK leaves the EU and if you will be carrying small amounts of goods for trade or business use in your baggage or small vehicle, there are new ways to declare them as Merchandise in Baggage (MiB).

    For example, if you buy jewellery on a trip to the EU and bring it back in your suitcase to sell in the UK, this would be classed as MiB.

  • Businesses will be able to use the UK's VAT checking service to validate a UK VAT number. They will no longer be able to use the EU's VAT number validation service.

  • Businesses will no longer be able to use the VAT Mini One Stop Shop (MOSS) to report and pay VAT on sales of digital services to consumers in the UK. They must register and pay VAT in the UK as soon as they supply services to a UK consumer. They will need to use HMRC's VAT correction process to correct a UK VAT figure submitted in a previous MOSS return.

  • Claims for VAT on business expenses before Brexit can be made using the EU VAT refund electronic system, but businesses should allow enough time for their member states to send the claim to the UK. If a claim is sent through the online system after Brexit, it will not reach the UK.

  • Businesses will no longer be able to use the EU VAT refund electronic system to claim refunds of VAT incurred in the UK. They must follow the processes for businesses outside the UK. Further information on VAT changes for businesses outside the UK in a no-deal Brexit can be found here.

If you'd like to find out more about getting an EORI for your business, or anything to do with trading in the EU after Brexit then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.

Until next time ...

Business Godparent

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More about Roger Eddowes ...

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.