HMRC And EORI: The Brexit Edition Of The Agent Update

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.