EU exit – did you read this letter?

The Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma has written a letter to businesses in the professional services sector. The letter (available in English and Welsh) provides tailored advice on what key actions businesses must take after the transition period ends on 31 December 2020.

The UK government confirmed earlier this year that it would neither accept nor seek any extension to the transition period and the EU has formally accepted this position. This means that the transition period will end on 31 December 2020. At the time of writing, no trade deal has been agreed with the EU although negotiations to reach an agreement with the EU appear to be continuing into the 11th hour.

We have summarised the main headings in the letter below:

1. Get your professional qualifications recognised by EU regulators to be able to practise or service clients in the EU.

Starting the process to get your professional qualifications recognised by EU regulators by 31 December 2020 may help you to practise your profession (e.g. accountancy, engineering) in the EU.

2. Check if a visa or work permit is required to travel to the EU for work purposes and apply if necessary.

You may face delays or refusal at the border when travelling for business if you do not comply with the immigration requirements of the EU27 if travelling from 1 January 2021.

3. Be prepared on data protection and data transfers.

Your business may not be able to legally receive personal data from the European Economic Area (EEA) from 1 January 2021 if you have not put alternative safeguards in place to cover EU to UK personal data flows.

4. If you are planning to recruit from overseas from 1 January 2021, you will need to register as a licensed visa sponsor.

You may not be able to legally hire people from outside the UK if you do not have a licence. New employees from outside the UK will also need to meet new job, salary and language requirements. Irish citizens and those eligible under the EU Settlement Scheme are not affected.

The letter also reminds readers that webinars providing a range of support are available at: transition-webinars.

Source: Department for Business, Energy & Industrial Strategy Wed, 02 Dec 2020 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a