The future of the UK’s relationship with the European Union is still being negotiated. The present deadline is 31 October 2019 unless this is extended.
We believe at the moment there are two possible Brexit scenarios.
If the UK and the European Union reach a deal before the 31st October 2019, both will enter into a transitional period. This period is expected to remain in place until the 31st December 2020. During the transitional period the way the UK trades with the European Union will largely remain the same as it is now, still being apart of the current Customs Union.
The transitional period is designed to allow the UK and the European Union to start preparing for the changes that will need to be made before the 31st December 2020. This give businesses the chance to start preparing for the deal that has been agreed.
No Deal Scenario
Should the UK leave the EU on the 31st October 2019 without a deal it is possible that the below will occur.
- UK leaves the Customs Union
- UK will start trading under World Trade Organisation terms
- Immediate requirement for Customs Declarations (import / export clearances)
- VAT and duties applied on goods entering the UK from the EU
- VAT and duties applied on goods entering the EU from the UK
At the moment we are unsure of the outcome, we do urge that you prepare for a no deal Brexit. This may seem daunting at first but in our next blog we will explain what you can do to get ready for a no deal scenario.
If you have any questions, send us a message.