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What Brexit changed for Brits

What Brexit changed for British businesses

The UK’s new trading relationship with the European Union (EU) might only be a few months old.

But some businesses are struggling to adjust to the new trading landscape outside of the customs union and single market.

The Federation of Small Businesses says many small firms had not had the time, money or clarity needed to properly prepare for the new trading arrangements with the EU.

A Cabinet Office spokeswoman says: “The UK has left the EU customs union and single market, there are new rules and processes businesses need to follow.

“Any business unsure about what they need to do should visit GOV.UK, attend one of our free webinars or watch one of our short films about importing and exporting.

“The government will continue to work closely with businesses to ensure they are able to trade effectively under the new rules.”

What are the new rules?

New rules have come into force for those in the UK either importing from, or exporting to, Europe.

Exactly what licenses are needed or what duties must be paid depends on what is being exported, its value, where the product originates from and to which country it is being sent, according to government guidance.

From 1 January, the UK government introduced a rule that VAT must be collected at the point of sale rather than the point of import.

This essentially means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150 (£135).

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