A number of organisations, including the Confederation of British Industry (CBI) have voiced the opinion that with Boris Johnson becoming Prime Minister, the chances of a ‘no-deal’ Brexit is becoming increasingly more likely. Whether you agree with this view or not depends on your political viewpoint.
However, Savid Javid, the new Home Secretary, has told HMRC that preparing for a ‘no-deal’ is an “absolute top priority”, suggesting a new business helpline and that some businesses should be contacted directly by HMRC.
It is reported that an additional £2.1bn of funding will be added to the £3bn that has already been allocated.
Julian Borley, VAT Director at Milsted Langdon said: “I think that the next few months will be a real crunch point for UK businesses in respect of VAT. I have a fear that HMRC are spread too thinly, and that the introduction of the ‘Construction Industry Reverse Charge’ and ‘Making Tax Digital’ (both of which experts recommended were delayed) at the same time as a preparations for a no-deal Brexit may cause real difficulties for UK business, regardless of whether they are directly impacted by Brexit or not.
“In terms of Brexit, one easy win is that if a business trades goods either to, or from, EU member states but has not already obtained an Economic Operator Registration and Identification (EORI) number, then it should look into getting one asap.
“Also, businesses operating in the construction industry should seek specialist advice on the ‘VAT Reverse Charge’ which will be introduced on 1 October, before Brexit overshadows this on 31 October. There’s clearly a lot of change coming for many businesses”.
For more information on VAT issues, contact Milsted Langdon’s specialist team on email@example.com