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The UK has voted to leave the EU, so how will this impact on the tax regime?
The UK has voted to leave the EU, so how will this impact on the tax regime?
The first thing to note is that there will be no immediate change. We are still a member of the EU. Until Article 50 is invoked, we will continue to engage with EU business as normal.
Once this is invoked, we will remain bound by EU law until the terms of our exit have been determined, this process is expected to take at least two years.
There will undoubtedly be a number of tax implications depending on the way that Brexit and ongoing trading is negotiated.
The most immediate issue will be Customs Duties and VAT. Once we Brexit we are no longer part of the EU Customs Union, meaning that EU customs duties would apply to goods brought into the UK from the EU, and also UK exports to the EU.
In addition we will no longer be obliged to have a VAT system as this is currently governed by EU directives. It seems very unlikely that the government will do away with VAT as it is a valuable source of revenue, but to continue it will require a UK legal basis giving the scope for changes. UK businesses are unlikely to continue to benefit from the current EU simplification methods.
It is easy to speculate on the likely changes but ultimately only time will tell. In amidst all of the uncertainty one thing is clear…this will not be a quick process.
Warning: Scam Letters
We have recently been made aware that a company called e-public, have been sending correspondence through to Directors, stating that they need to pay £190.00 or their company will be struck off.
These letters look similar to the picture above.
We have spoken to Companies House who confirmed that these letters are a scam and no payments should be made to this company. They have received several enquiries regarding these letters and are in the process of letting companies know.
If you have received one of these letters and would like to speak to someone, please do not hesitate to contact us.
To Register Flat Rate VAT or Not To Register Flat Rate VAT
During registration with HMRC for the Flat rate scheme (FRS), VAT expected is calculated on a fixed percentage of sales – Simple! or is it?
The problem begins when the actual percentage used does not reflect the type of business activity.
Give us a call 01909512120 and we can advise you further.