Brexit – how will it affect your business?

The UK left the EU on 31st January 2020 and entered an 11-month transition period, during which time the rules on trading with EU countries remained largely the same. After months of negotiations, the two parties finally agreed to a trade deal just seven days before the transition period ended on 31st December 2020.

The deal, known as the EU-UK Trade and Co-operation Agreement, came into effect on 1st January 2021 and paves the way for zero tariffs and zero quotas on goods moved between the UK and the EU.  It also contained limited provisions on the supply of cross border services.

The absence of tariffs and quotas is of course welcome, however UK businesses who trade with the EU will now be required to follow new rules and procedures when sending and receiving goods.    

The UK Government wrote extensively to businesses during 2020 to inform them that change was on the way, and that action must be taken. This included information on getting ready to export goods to and import goods from the EU.  

Businesses who have not yet prepared will need to do so now, and should refer to the Government guidance on Importing and Exporting after Brexit:

• Export goods from the UK: step by step
• Import goods into the UK: step by step

Services are also a key part of the UK economy, and the agreement allows UK businesses to continue accessing the EU market. However, some UK businesses will see changes from 1st January, and there are additional matters to consider when supplying services to the EU, such as business regulations and travelling. 

Further details can be found in Government guidance on selling services to the EU, Switzerland, Norway, Iceland and Liechtenstein.

The Government has also produced an online Brexit Checker, where businesses, as well as individuals, can answer a series of questions to find information and resources to assist with the changes relevant to them.

Brexit will lead to changes for many UK small businesses, so it is important that you are aware of how the UK leaving the EU will affect you.

Need more help?

We love working with self-employed professionals and independent business owners and if you are not receiving the service and support you deserve from your accountant then please talk to TaxAssist Accountants on 029 2069 4294 or use our online enquiry form. We offer free initial consultations, advice, and support over the phone or via video meeting if you have any concerns about face-to-face meetings.

Last updated: 7th January 2021