Author Archive: Muhammad Zia

Applications open for £2,000 post-Brexit import VAT advice

Applications are now open for the Government’s SME Brexit Support Fund, which offers grants for up to £2,000 that can be put towards the cost of professional advice on import VAT.

The end of the Brexit Transition period has changed the way businesses must account for VAT when importing from the EU and the new fund offers help to access advice on staying compliant following the changes.

Businesses are eligible for the fund if they:

  • have been established in the UK for at least 12 months before submitting an application or currently hold Authorised Economic Operator status;
  • have not failed to meet tax or customs obligations in the past;
  • have no more than 500 employees;
  • have turnover of no more than £100 million; and
  • import or export goods between Great Britain and the EU or between Great Britain and Northern Ireland.

They must also meet one of the following conditions:

  • Complete (or intend to complete) import or export declarations for their own goods; or
  • Use someone else to complete import or export declarations but need additional capability to effectively import or export.

To apply, you will need to provide a quote for the proposed professional advice, the business name and address of your chosen professional advisor and details of the advice you wish to obtain.

Applications are open here.

The deadline for making an application is 30 June 2021 but could be earlier if all £20 million of available funding is allocated before then, so it is advisable to apply as soon as possible.

Please contact us today for a quote and details of the professional advice we can provide.

An introduction to the UK’s points-based immigration system

On 1 January 2021, the UK launched a new, points-based style immigration system to bring EU immigration into line with the rest of the world.

If you are an employer, here’s what you need to know about the new immigration regime and how you can recruit talent from overseas.

What is a points-based immigration system?

The new regime ends freedom of movement between the EU and the UK and introduces a new Australian-style ‘points-based’ system.

Under this regime, anyone coming to the UK for work purposes – no matter where they are from – must meet a specific set of requirements for which they will score points. Work visas are awarded to those who score enough points.

How are points scored?

Anyone coming to the country under the ‘skilled worker route’ must demonstrate that they have a job offer from a Home Office licensed sponsor (more on that later), which is at the required skill level or above.

The job offer must also meet the applicable minimum salary threshold (currently, the higher of either the general salary threshold of £25,600, or the specific salary requirement for their occupation, known as the ‘going rate’).

Should the applicant not meet the salary threshold, they can “trade characteristics” to score additional points. This may include a job offer in a specific shortage occupation, a PhD relevant to the job, or a PhD in a STEM subject relevant to the job.

Applicants must also speak English to the required standard.

The full list of characteristics and awarded points can be found here.

What you need to do as an employer

Employers must have a sponsor licence to hire workers from outside the UK. Without one, they may be breaking the law.

The standard processing time is around eight weeks, so you should prepare your application well ahead of recruitment.

You can learn more about the application process and eligibility criteria here. To apply to become a sponsor, click here.

Get expert advice today

For help and advice on related matters, please get in touch with our expert Brexit advisory team today.

Do I need to set up an EU subsidiary?

“Should I set up a company in the EU” is among the most common questions we receive now that the UK has left the single market.

However, the answer isn’t always as straightforward as yes or no. There are both advantages and disadvantages to registering a company in the EU.

What is an EU subsidiary?

An EU subsidiary is a company belonging to you, but registered in the EU for VAT and customs purposes. You usually only need one EU subsidiary, but there is no limit to the number you can set up.

Why should you set up an EU subsidiary?

If you commonly move goods across the EU, an EU subsidiary may help you bypass new customs processes established after the UK left the EU earlier this year.

This is because an EU subsidiary is considered a European company and is, therefore, assumed to follow EU rules and regulations when manufacturing or trading products. This means less paperwork for you.

Do note, however, that goods moved between the UK and the EU (including Northern Ireland) are still subject to the new customs processes, regardless of whether you have an EU subsidiary or not.

Why shouldn’t you set up an EU subsidiary?

Setting up an EU subsidiary is costly. You may have to pay for new headquarters and staff and take on additional administrative duties.

That said, the benefits of doing so may outweigh the time and financial investment.

How do I set up an EU subsidiary?

To set up a new company, you will need to acquire a registered address in the EU country of your choosing and create a company with the local business department

Get expert advice today

For help and advice on related matters, please get in touch with our team today.

Should I register for VAT in the EU?

If you wish to trade with the EU following the end of the Brexit transition period, you may need to register for VAT in the single market.

In this article, we will explain how and why you need to do so.

Why should I register for VAT in the EU?

If you are planning to trade in the single market, you may need to register for VAT in the EU. Doing so will help you avoid financial penalties, build your business profile within the EU, and allow you to apply for VAT refunds.

Here are just a few scenarios where VAT registration may be required:

  • If your UK company is buying and selling goods in an EU country
  • If your UK company is importing goods into an EU country
  • If your UK company is holding goods in warehouses in EU countries for customers
  • If your UK company is hosting a live conference, exhibition or training in the EU
  • If your UK company is selling goods over the internet or through catalogues to EU customers

VAT and digital services

If your business supplies digital services to consumers in the EU, you must register with the VAT Mini One Stop Shop (MOSS) in any EU country, or for VAT in each country where you’re supplying digital services.

If you are registering for the VAT MOSS, you must do so by the 10th day of the month after your first sale to an EU customer.

How do I register for VAT in the EU?

The process for registering for VAT in the EU is will vary from country to country. For most registrations, you will need to have your company information and VAT details handy, and possibly proof of planned trade, such as contracts and invoices.

The submission process usually takes between two to eight weeks, so registration should be planned well in advance of any planned transactions.

You can find out how to register for VAT in each EU member state by visiting the European Commission help page.

Get expert advice today

For help and advice registering for VAT in the EU, get in touch with our team today.