Brexit

Customs tariffs are of great importance to businesses bringing in goods to the UK as they will have an impact on the final cost of purchasing goods.

A Customs tariff is applied to the Customs value of goods on entry to the UK (currently from outside the EU) and then Import VAT is applied to this final value. Currently, no Customs tariffs are applied to goods being acquired from the EU.

The Government has published a customs tariff for the UK to use in the event of a no deal Brexit. Given the time scales, the tariffs that have been announced are a temporary measure with duty rates on a large number of products being at 0%.

The UK currently uses the European Union common tariff which will become redundant once the UK leaves the EU.

The new UK tariff lists the customs duties that will apply to each type of good entering the UK after 31 October if there is no deal. It should be borne in mind that this will apply to all imports to the UK so this will cover goods coming in from the rest of the world and the EU.

In its guidance HMRC has provided information on countries which will be entitled to preferential rates of duty to those shown in the new tariff. This includes developing countries qualifying for the Generalised Scheme of Preferences (GSP), and there is also information on bilateral free trade agreements the UK has reached with some countries, including Switzerland, Chile and Israel.

As mentioned above, the tariff is a temporary measure in the event of a no deal Brexit and it is expected that a more detailed tariff will be developed in the 12 months following Brexit.

Although approximately 87% of goods will be subject to a 0% rate, some products will be subject to a duty rate. This is mainly in the automotive and food sector and the tariffs mirror existing EU rates. For example, motor cars will still be subject to a 10% rate of duty.

This development is another issue that businesses should be considering if the UK leaves the EU on 31 October. As previously advised we recommend that businesses apply for an EORI number (Economic Operator Registration and Identification) which is a requirement on Customs documentation and other procedures such as inward processing relief and warehousing.

Businesses also have the option to use transitional simplified procedures (TSP) to declare their goods to Customs. This will allow importers to defer making a full declaration and paying customs duty until after the goods arrive in the UK. Applications to register for the TSP scheme can be submitted online. Applicants must hold an EORI number and apply to defer payment of import duties.

Llanelli Railway Goods Shed Trust

“I am very happy to endorse Chiene + Tait. We have received invaluable advice from them regarding VAT issues. They have been very thorough and efficient throughout and have acted on our behalf in dealing with HMRC. They identified major savings on the VAT on the capital cost which has enabled our project to move forward.”

Neil Sutherland, MD, Makar

“We were introduced to Chiene & Tait in relation to an R&D tax credit application to HMRC and to say were were delighted with the outcome is an understatement. The specialist service provided made all the difference for a very successful claim and subsequent financial payout. Since this initial experience we have not hesitated in working with Chiene & Tait in subsequent years with continued success. I would reconvened their services to any progressive organisations engaged in R&D activities.”

Martin Nadin, Chief Executive, Scottish Veterans Residences

“They are well-informed about the charity and third sector. Their performance has been seamless, runs on rails, and their size allows them to provide us with a personalised service.”

Chris Wright, Founder, deltaDNA

“We have especially liked Chiene + Tait’s approach: they have always taken a long-term view, working with us to make sure we correctly allocate R&D and show to HMRC the reason each project is valuable research. This has allowed us to successfully secure the tax credits with the minimum of fuss and the confidence each year to invest. I cannot rate Chiene + Tate highly enough. Having worked with other firms during the years on R&D Tax Credits, Chiene + Tait are by far the most professional, easiest to work with and ultimately the best at maximising the value back to the company.”

Tabatha McCree-Cox, Tarbraxus Distillers

“Chiene + Tait offered that expertise which is really important. They have a very friendly team. For example, Kerry on the VAT side has been really good, very detailed: she sets out the information very clearly along with what needs to be done. They are so much better than the previous firm we used.”

Richard Cooper, CEO, Novosound

“Novosound chose to engage with Chiene + Tait for specific tax advice prior to commencing its spin out. We chose C+T due to their deep knowledge of tax treatment with respect to share issues at company formation. This knowledge was exceedingly useful before and during the spin out process. The firm was easy to deal with and when a particular issue arose at the 11th hour, they dropped everything and developed a practical solution that suited all parties. All together C+T are a great firm to work with.”

Bruce Weir, Director, CW Properties

“Chiene + Tait have been excellent to deal with over the last ten years, with clear robust advice on all aspects of our company work. They really do think through solutions to provide best advice at all times.”

Gillian Brown

“They are efficient and I’ve found the people to be easy to work with. They are very transparent in their approach, and always very quick and professional in their responses. I do regard them as a trusted adviser.”

Karen Stark, Head of Finance, Care Visions Group

“Chiene + Tait have provided Care Visions with a professional service from the start: the set-up and parallel runs gave me so much confidence in the decision to outsource. The team at Chiene + Tait are always professional, extremely helpful and reliable.”

Enable Scotland

“As an organisation, we have had a hugely positive experience working with Chiene + Tait. The firm is easy to work with, flexible and promotes a real sense of confidence in their work and advice.”

Barry McCorkell, Director, Aubrey Capital Management

“I had no hesitation in asking for advice from the Chiene + Tait team when HMRC selected us for an Employer Compliance Review. Having longstanding trusted advisers at our side made it a lot easier and a lot less stressful! HMRC’s recommendations were quick to be addressed and adopted so the review, which could have been a challenging and unnerving experience, was instead professional and efficient. I would have no hesitation in recommending the C+T team to anyone in the future.”

Neil Wilkie, COO, Mironid

“We have been delighted to work with Chiene + Tait on our R&D tax credit claim over the past few years. The guidance and professionalism of the C+T team has resulted in a smooth submission process with a concomitant successful outcome. I’d highly recommend their services.”

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