The UK is no longer a member of the EU. You can read our updates below on the changes effective from 1 January 2021.
At Saffery Champness, we are well-placed to advise individuals and businesses impacted by the UK leaving the EU.
Brexit: where are we now? A VAT and Customs update
We highlight the VAT and customs issues that require taxpayer attention, and we flag some important changes taking effect from 1 January 2022. Read more.
Changes to withholding taxes from 1 January 2021
At midnight on 31 December 2020 the tax position for UK corporates changed where they pay or receive interest, royalties and/or dividends to or from related parties that are resident in the EU. Read more
The case for a new conservation relief for UK agriculture
The Agriculture Act became law on 11 November 2020. It sets out how public money will be used to support farming across the UK in future, with subsidy dependent on the delivery of public benefits. There is concern where the delivery of those public benefits, such as environmental schemes for example, effectively stops land from being used for ‘agricultural purposes.’ Where that land ceases to be used for agriculture, it will likely cease to qualify for Agricultural Property Relief (APR) and Business Property Relief (BPR) for the purposes of inheritance tax. Read more.
Does your UK subsidiary require an audit?
A significant number of overseas groups with UK subsidiaries remain unaware of the statutory requirements for audit under UK law. Failing to comply can be costly; we set out here a simple but comprehensive guide to the audit requirements of UK subsidiaries. Read more.
Repatriating profits to an overseas parent company
Though the UK does not impose any exchange controls, there are still UK tax issues to consider on how profits to an overseas parent company are repatriated, as well as commercial and accounting matters. Read more.
15 January 2021
VAT and movement of goods
Read our article which outlines the key VAT points which relates to trade in goods between the UK and the EU post-Brexit.
VAT and services
Read our article which outlines the considerations service providers need to be mindful of when trading with the EU.
4 January 2021
UK-EU trade deal
The UK stopped following EU rules when the Brexit transition period ended at 11pm on 31 December 2020. At this point a new trade agreement between the UK and the EU took effect. Full details can be found here.
Our comment: UK businesses will be looking forward to a period of certainty after a challenging four and a half years since the Brexit referendum.
Many businesses put significant time and effort into Brexit transition planning and will be able to return to work in 2021 well prepared.
Being outside the Single Market means a new set of arrangements for businesses trading with the EU. Whilst zero tariff arrangements are welcome, there will be changes to the practicalities of trading in goods and services with businesses in the EU.
The transition has been a challenge for a number of our clients, in particular those with an international footprint, however there is also an opportunity to adapt to the new arrangements.
We look forward to supporting our clients in this new era. Whether it be group structuring, employee mobility or VAT filings, we will continue to provide practical solutions.
15 December 2020
Corporation tax payments for trading companies hit hard by Covid-19
Many trading companies will make substantial losses during Covid-19. With cash flow so important for such companies, they will want to make sure that they do not suffer any cash flow disadvantages because of corporation tax payments due. Read more
4 December 2020
Post-Brexit changes to placing regulated foods on market
Certain food and feed products require authorisation before they can be placed on the market.
Currently there are no authorisations in place for food enzymes, food contact materials – recycled processes or food contact materials – active and intelligent materials, and as such an application is required before they can be placed on the market.
However, following the end of the transition period on 31 December 2020, the application will no longer be required. Instead the FSA, along with Food Standards Scotland (FSS) will carry out a risk analysis process for regulated products and will advise ministers, who will decide whether a product can be placed on market. Following a decision, legislation will be updated with the associated condition.
Existing authorisations at 31 December 2020 will remain valid and there will be an application process for new regulated products available from 1 January 2021. Any application that are in progress will need to be re-submitted to the new process, as will any applications for modifying an existing authorisation.
A list of the regulated product types, and more details on this process can be found here.
26 November 2020
VAT Update November 2020
Our November VAT Update focuses on Brexit again, as the end of the transition period looms ever closer, with updates on:
- Commercial aspects of moving goods between Scotland, England and Wales and the EU from 1 January 2021
- Use of duty deferment accounts for Customs Duty
- Delayed customs declarations
- EU VAT refund claims for 2020 and the filing deadline for submissions
Brexit and employer uncertainty
It is possible that the UK could leave the EU on 31 December with no deal in place. Employers with employees overseas need to consider the implications if a deal is not reached, given there is now limited time to put plans in place. Read more
4 November 2020
The impact of Brexit on the screen sector
Stephen Bristow, a partner in our Film & TV Team, considers some of the frequently asked questions about Brexit’s impact on the screen sector in the UK. Read more
29 October 2020
VAT changes for e-commerce (and other transactions)
The EU has published guidance on the new VAT e-commerce rules being implemented from 1 July 2021. Among other things, the rules impact: sales of goods imported from outside the EU and sales of goods to private individuals made from one EU member state to another. Our VAT experts have prepared a series of questions and answers to address important issues for UK businesses. Read more
28 October 2020
Immigration update for EU nationals
An article by Rose Carey and Elena Vasilyeva of Charles Russell Speechlys
Many EU nationals have concerns about what will happen when the UK finally exits the EU at the end of the Brexit transition period on 31 December 2020. Free movement will only apply until the end of the transition period at 11pm on 31 December. Read more
VAT and the end of the transition period
From 31 December 2020, the UK will no longer be a part of the EU VAT system. This has significant VAT implications for UK suppliers involved in international supply chains. Read more
21 October 2020
VAT and intrastat filing requirements
HMRC has published details relating to intrastat filing requirements for 2021. This confirms that the UK authorities will still require intrastat reporting for imported good in 2021. Read more
7 October 2020
VAT changes for goods and services after the transition period
The end of the transition period will see immediate changes to matters affecting VAT and the supplies of services and goods between the UK and the EU.