HM Revenue and Customs (HMRC) has automatically registered 95,000 businesses for its simplified import procedures allowing most traders up to 6 months to pay import duties and submit customs declarations, if the UK leaves the EU without a deal on 31 October 2019.
The scheme, known as Transitional Simplified Procedures (TSP), will make importing after Brexit on 31 October much simpler, particularly for businesses that would be completing customs processes for the first time. Up to now, businesses have had to apply for it – over 30,000 had previously registered.
This TSP scheme will allow most businesses up to 6 months to send in customs declarations and pay any customs duties to HMRC after importing goods from the EU. This will prevent congestion at the border when goods enter the UK.
The government has chosen to automatically enrol VAT-registered businesses that import from the EU into the TSP scheme as it is the best option for businesses that are new to customs processes . Businesses that are not registered for VAT should apply for the scheme if it would benefit them.
TSP was originally unveiled in February 2019 – and businesses were encouraged to apply. However, of 145,000 companies eligible, only 24,000 applied – therefore with only 2 weeks before a possible “no-deal” departure, HMRC made the decision to extend TSP to VAT-registered businesses automatically.
For more information from HMRC website on this subject, please click below –
Horizon International published a guide to help businesses navigate post-Brexit processes. To download, click here –
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