LS Legal News Bulletin
How could Brexit impact you and your business?
Thursday 13th February 2020
The UK leaving the European Union will lead to a significant change to our economy, trading and financial arrangements.
There might be steps you will need to take over the next coming months, in order to prepare for the impacts this could cause for you and your business.
Right now, the UK is in the transition period, which will last until 31 December 2020. The Transition Period will serve as a time for the UK to negotiate a new trade agreement with the EU, in order to determine their future relationship. If by the end of 2020 no agreement has been reached, then the UK will have to revert to the World Trade Organisation rules for trade with any EU countries.
At this point in time, nothing has yet changed. The UK has now technically left the EU; however, it will continue to abide by its rules until the end of this year. The important thing is that Trade rules and Free movement will remain unchanged until we are out of the Transition Period. This is important, as this gives everyone the necessary time to plan ahead.
One important change to consider is how the Free Movement will be affected. If your company employs EU workers, make sure to let them know they will need to apply for settled status by 30 June 2021, which serves as permission to continue to reside in the UK under one condition - they need to be living in the UK by 3 December 2020.
For now, the UK remains a member of the EEA, single market and customs union. But this will change at the end of 2020, this means now is a good time to plan ahead and understand how the changes will impact you and your business.
1. What happens at the end of the transition period?
If the UK will leave the EU with no trade deal in place, it will revert to WTO rules for trading with EU member states. Have a "No deal" plan for your business and keep it updated.
2. Assess your exposures and vulnerabilities
Documenting every element of your trade with the EU is very important because the analysis of this information will show how this might then be affected at the end of the transition period.
3. Apply for an EORI number to continue to move goods into or out of the EU (including the UK)
Customs Union means there are no trade borders with other member states, therefore when UK businesses buy and sell goods in the EU today, they're not treated as imports or exports. This will change at the end of the Transition Period and you will require a reference number to continue trading - an Economic Operator Registration and Identification (EORI) number.
If you import goods from the EU, you can also register for and use Transitional Simplified Procedures (TSP), to get extra time to send in your customs documentation. You'll need an EORI number, starting with GB, to apply for TSP.
If you import goods from the EU, you should also familiarise yourself with VAT rules and check the duty you'll have to pay on items you bring in to the UK.
4. Work out your workforce's need
If your business employs EU citizens, you will need to check if they have applied for settled status and see if they need any support with the process. You might also need to consider if any new regulations apply to their travel between the EU and UK, such as visa requirements.
At LS Legal, we have a team of expert solicitors who are here to help you with any type of immigration application. Our solicitors will guide you through the process, making sure you are not left in the dark.
Get in touch with our team at firstname.lastname@example.org or 07535959450/02081445588 and book your consultation now!