Following the recent rejection of Theresa May’s Brexit ‘Withdrawal Agreement‘ twice in the last month, the country has taken measures to once again amend the plan and reconvene towards the end of February for a further opportunity to vote. But what happens in the event of the deal failing?
The country seems to be preparing in case no agreement is settled before 29 March 2019. They are looking at four possible outcomes in the event of the country not being able to come to a meaningful vote.
- No Deal: If no agreement is reached and no other motions are set in place after this then it would be a default hence leading to a no-deal Brexit.
- General Election: An early general election would be the best solution for the deadlock, especially for the current Prime Minister, Theresa May – in order to get a political mandate for her deal.
- Vote of no confidence: Labour could table another motion of no confidence in the government at any time.
- Renegotiate: The government could propose to negotiate a completely new Brexit deal
There is much doubt on Theresa May’s ability to push through any Brexit deal before Britain is due to leave the European Union.
HM Revenue and Customs have already notified businesses of the customs regulations that will fall into place after the end of March. HM Revenue and Customs is the UK’s tax, payments and customs authority. They collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.
Kelmer UK have already been notified about the change in regulations when it comes to trade between the European Union and Britain in the event of a No Deal Brexit. HM Revenue & Customs clearly stated that this does not apply to trade between Northern Ireland and Ireland, however the Government is prepared to do anything in its power to avoid a hard border whatever the outcome is.
Businesses are notified about the following if the UK leave the EU without a deal.
- New process on making a customs declaration?
- Register online to get an EORI number at gov.uk/hmrc/get-eori.
- Appoint a customs agent in case the company has any declarations
- If you cannot appoint a customs agent, appoint an individual in your company who is aware of the procedures
- Buy specialist softwares that link to the HMRC’s customs systems
- If exporting sign up to the National Export System.
- Easier Importing rules and regulations
- Introduction of new Transitional Simplified Procedures (TSP) making importing easier during the initial period
- Companies can sing up for TSO from 7th February 18, 2019, gov.uk.hmrc/eu-simple-importing but will need an EORI before doing so
- Changes to VAT and the online systems
- You will be able to declare and recover import VAT on the same Vat return
- Need to provide you VAT registration number on your customs declaration
- You will no longer be able to use certain EU VAT IT systems
- EU VAT Refund Electronic System: EU VAT refund claims for 2018 should be made prior to 29th March 2019, UK businesses can reclaim VAT from EU countries by existing procedures for non-EU businesses.
- EU’s VAT number validation service (VIES): UK VAT numbers will no longer be part of VIES after the 29 March. An online checker will be available on from 29 March on gov.uk.
- UK VAT Mini One Stop Shop (MOSS): Declare and pay VAT on sales of digital services between 1 January and 29 March 2019 regularly using MOSS before 20th April 2019.