“Get Brexit Done” was the simple message that led to a Conservative majority in December’s general election. This has meant Boris Johnson’s ‘Brexit bill’ passed easily through the House of Commons. Indeed, the bill has now received Royal Assent so the EU (Withdrawal Agreement) Act 2020 is now in place.
The UK is, therefore, set to leave the EU on 31 January 2020 and enter a 12-month transition period during which a trade deal will be negotiated and businesses will need to get ready for leaving the EU.
As things stand, the transition period will end, with or without a deal, on 31st December 2020.
During the transition period, the UK will remain part of the customs union and the single market, and all EU VAT legislation still applies. However, beyond this, many questions about the rules which will apply following UK’s departure are still unanswered. Undoubtedly, the most complicated tasks lie ahead. The UK is in an unprecedented position – no other Member State has left the EU before.
The transition period leaves the two sides with just a third of the time taken to negotiate the Withdrawal Agreement – but with much more to do. Every EU member state will have a vote and veto over the deal – which will make negotiations more complicated for the UK. The Government may have to choose between making major concessions to the EU or walking away without a deal as the Prime Minister has so far ruled out any extensions to negotiations.
Businesses, therefore, need to prepare to say “farewell” to Brussels and the trade rules as we know them, and rise to the challenge of getting ready for Brexit.
As the amount of uncertainty shows no sign of abating in the short term, many businesses are understandably concerned about the impact of such doubt. However, there are a number of practical steps we would strongly recommend businesses consider in the lead up to 31 December 2020. These are outlined in our up-coming publication ‘Planning for Brexit: Indirect Tax” which will be published on 27 January.
As the process continues, we will keep you up-to-date with the latest developments that may affect your business. In the meantime, if you would like to get advice as well as clarity on your indirect tax position to help your business get ready for Brexit, please contact one of our Wilkins Kennedy VAT or duty specialists.
HMRC have long taken the view that most holiday camps/activities offered by regulated commercial providers are subject to VAT at 20%. Several providers have been previously assessed for VAT on this basis and in light of the recent case we strongly encourage providers in the sector to review their position if VAT is being applied. Mark Doherty, VAT Director at Wilkins Kennedy, takes a closer look at this new VAT position on school holiday camps...
In the event that the UK’s negotiation with the EU sees the end of the UK’s participation in the ‘VAT Union’, several simplifications currently enjoyed by UK VAT registered businesses will be lost. Those businesses would need to consider their future options.
As interminable January (and Brexit) comes to an end, thoughts can now turn to Spring, and in particular, the new Chancellor Sajid Javid’s first Budget, scheduled for 11 March 2020...
A little over a year ago in the 2018 Budget, the then Chancellor of the Exchequer, Phillip Hammond, declared the Government was committed to keeping family homes out of Capital Gains Tax. He went on to say some aspects of the current Principal Private Residence (PPR) relief extend beyond that objective and provide relief for people who are not using the home as their main residence.
Brexit is a major disruptor for businesses today and will continue to be for the foreseeable future. As the process continues, there is a clear sense of frustration in the business community over the lack of clarity on the procedures that will be placed on businesses that trade with the EU. There are things, however that you can do to help ensure you are ‘Brexit ready’ by 31 December 2020...
“Get Brexit Done” was the simple message that led to a Conservative majority in December’s general election. This has meant Boris Johnson’s ‘Brexit bill’ passed easily through the House of Commons. Indeed, the bill has now received Royal Assent so the EU (Withdrawal Agreement) Act 2020 is now in place...
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From 6 April 2020 changes to the way UK resident individuals, trustees and personal representatives report the disposal of UK and overseas residential property come into effect. The changes will mainly affect those disposing of a second home, a rental property, or properties that have not been occupied as a main residence throughout the period of ownership.