HMRC subscribes 95,000 firms to ‘no deal’ process

In a repeat of its recent allocation of EORI numbers to 90,000 firms, HMRC has this week subscribed 95,000 businesses to its Transitional Simplified Procedures which will apply should the UK leave the EU without a deal.

Transitional Simplified Procedures (TSP), is intended to make importing after Brexit on 31 October much simpler, particularly for businesses that have only been trading with the EU and who would be completing customs processes for the first time.

TSP will allow businesses up to six months to send in customs declarations and pay any customs duties, to avoid congestion at the border when goods enter the UK from the EU.

Up to now, businesses have had to apply to use the scheme, but with only 25,000 registering, HMRC has taken action to extend its reach to some 95,000 operators.

We strongly recommend that any firms uncertain about which Brexit import process is best for them, to contact us directly, so we can explain their options.

The government says it has chosen to automatically enrol VAT-registered businesses who import from the EU into the TSP scheme as it is the best option for businesses who are new to customs processes and have not yet appointed a customs agent.

Under TSP, traders can choose to delay making declarations until 6 May 2020, giving them more time to get used to new processes.

If they choose to delay making declarations until 6 May 2020, payment for the duties they owe will be taken by direct debit on 15 May 2020.

Traders should prepare to account for the import VAT on imports on their normal VAT return.

Businesses registered for TSP today are UK-based traders who HMRC has a record of having imported goods from the EU in 2018.

Firms do not have to use TSP, they still also have the option to use full import processes instead.

Details of Transitional Simplified Procedures (TSP) operation can be found HERE