BREXIT: VAT’S IT ALL ABOUT?
It’s been nearly two months since the EU-UK trade deal changes came into effect and the Brexit transition period came to an end. However, during this time Advisors have had BIG busy periods to work through: self-assessment deadlines and another Covid-19 #3 lockdown, bringing new support to work through for clients.
With all this happening, it’s very easy to take your eye off the Brexit ball and the changes that are affecting business owners today.
So, to help, we’ve produced a quick guide for our DTX’ers to make sure you have considered the tax points which could impact business owners today.
Well, since the UK left the EU on 1st January, changes have been made to the way that the UK trades with the EU, as well as Great Britain trading with Northern Ireland.
The main big changes are:
Some of the well-known EU schemes and rules have been abolished since this date such as the Mini One Stop Shop scheme (MOSS) – replaced with a non-Union MOSS scheme, distance selling and triangulation.
Trading is now referred to as imports and exports, and broadly follows the principles applied to the rest of the world (with some exceptions of course – it wouldn’t be tax without this!).
THE IMPACT ON BUSINESSES
At first glance, this might not look like much, but the rules, and nuances to consider for clients are complex.
Check out this infographic for the core business activities clients are doing, that could be affected by Brexit.
LET’S MAKE LIFE EASIER
You don’t want to get bogged down in VAT and Brexit, trust us it is not pretty. That’s why for DTX’ers, we’ve produced a visual, along with supporting guidance, template emails and other marketing resources to share the information with your clients and prospects.
It’s critical clients ensure their VAT is being treated correctly and so we recommend specialist advice is obtained. Without advice there is a risk of compliance issues, which can be expensive and very time consuming.
Let’s make life easier for clients.