What the Brexit deal means for small business clients

It’s been a long and winding road but the UK has now left the EU and the details of the Brexit deal have been agreed. As a result, a set of new rules on doing business with countries in the EU has come into effect. Here’s what your clients need to know about the changes.

Importing and exporting goods between the UK and the EU

Moving goods between Great Britain and the EU

The Brexit deal sets out a number of changes to the rules on importing and exporting goods between Great Britain (i.e. England, Scotland or Wales) and the EU:

• Businesses based in Great Britain are now required to have an EORI (Economic Operator Registration and Identification) number that begins with ‘GB’.
• Businesses based in Great Britain now need to make customs declarations for all exports and for the import of controlled goods, some of which may also require special licences or certification. If your clients import goods that are not controlled, you may be able to delay making declarations for up to six months. A customs intermediary can deal with declarations and the classification of goods on your clients’ behalf.
• A number of changes to the VAT treatment of overseas goods now apply to businesses based in Great Britain.

Moving goods between Northern Ireland and Great Britain or the EU

The Northern Ireland Protocol sets out guidance for importing goods to, exporting goods from and moving goods through Northern Ireland from 1st January 2021.

If your clients move goods between Great Britain and Northern Ireland, the government’s free Trader Support Service can guide them through these changes.

Providing professional services to the EU

If your clients provides professional services to countries within the EU or EFTA (European Free Trade Association), they should check the guidance for each country they supply services to in order to assess:

• whether they need to make any changes
• whether their qualifications are recognised in those countries

Employing EU citizens

If your clients already employ EU citizens who live in the UK, these employees may need to apply to the EU Settlement Scheme in order to continue living and working in the UK.

If your clients wish to employ an EU citizen who is not currently based in the UK, they will need to apply for a sponsor licence. Further guidance is available on the government’s website.

Irish citizens continue to be able to work in the UK under Common Travel Area (CTA) arrangements.

Transferring personal data between the UK and the EU

Following the end of the Brexit transition period on 31st December 2020, the free flow of personal data from the EU/EEA to the UK will continue for at least four months. This period may be extended to a total of six months. For the latest updates, keep an eye on the government’s website. The rules on sending personal data to the EU/EEA from the UK have not been affected by the UK’s withdrawal from the EU.

For more information on transferring personal data between the UK and the EU, you and your clients can take a look at this recent webinar from the ICO (Information Commissioner’s Office).

If your clients need to make changes as a result of these new rules, there are many government resources available to support them. The ‘Brexit checker’ tool creates a personalised list of actions to help businesses comply with the new rules. The UK government has also created this collection of helpful videos, which your clients can register to view free of charge.