VAT News

HMRC Brexit Reminder Letter – Businesses with Poor Compliance will not access Simplified Declarations


HMRC have circulated their latest reminder letter to UK businesses to ensure they prepare for Brexit. With 2 months to go before the end of the Transition period it is a timely reminder that whatever the state of any “deal” that is reached between the EU and the UK, the way in which a UK business will deal with the paperwork (declarations) when moving goods in and out of the UK and the associated VAT accounting treatment on the imports of goods is going to change.

There have already been announcements regarding the importation of goods into the UK and steps brought in to ease UK Businesses into the extra declarations that they would have to deal with when they now import EU sourced goods from the 1st Jan 2021. The use of a simplified declaration stage for example – at least up until the 30 June 2021 – rather than full declarations and the use of postponed VAT accounting for the VAT due on all imported goods not just EU sourced goods.

It is also clear that any goods that leave the UK will be subject to export declarations being required, irrespective of whether the end customer is a private consumer or a business customer. This will be another issue for UK retailers to consider along with the stated withdrawal of the UK Retail Exports scheme that has been announced.

However, as HMRC letter reminds us, the access to the simplified stage import declarations is not open to businesses with a poor compliance record with HMRC. Such businesses should expect a further letter from HMRC it states. That will be something to watch out for in those affected businesses.

With the message from the UK Government – loud and clear – coming across all media at the moment that UK businesses need to “Get Ready” for the end of the transition you may find joining Centurion’s Get Brexit VAT Ready sessions of value. We have been running these since September and the next is scheduled for the 4th November to catch up with the latest news that we have, as well as explaining the basis of the issues that will be changing from the 1st Jan 2021. Where you need more detailed and tailored VAT support to help with VAT systems and management changes that your business will need then we can undertake tailored reviews to ensure your planning is well underway.

Centurion VAT – here to help when VAT gets complicated – and only a call or an email away when you need that help or reassurance. Contact us at or book on our next Get Brexit VAT Ready session HERE


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