BREXIT and Sending Goods to the EU

Our free trade deal gives us a clear framework for trading with the EU. Everyone who trades with EU member states must follow the new rules to keep their business moving.

In this week’s letter, I want to focus on the range of Government support available for businesses who send goods to the EU.

The Government will continue to provide support and guidance for businesses exporting to the EU and the rest of the world, to make this process as simple as possible.

Yours sincerely,

Rt Hon Kwasi Kwarteng MP

Secretary of State for Business, Energy & Industrial Strategy

New rules for businesses 

  • You must declare any goods you send to the EU, providing details about what you’re sending and what it’s worth, using a customs declaration form. You can get a customs intermediary to help you do this.
  • If you’re sending goods using a fast parcel operator or express courier, they’ll declare the goods for you, using the information you provide. This option could be beneficial for smaller businesses who aren’t looking to get a contract with a customs agent.
  • If you’re sending goods by post valued at £900 or less, Royal Mail will give you a customs declaration sticker to fill in and attach to the parcel. For goods worth more than £900, Royal Mail will submit the customs declaration for you, using the information you provide.
  • You will need an Export Health Certificate (EHC) to export food or drink that contains products of animal origin such as meat, dairy or eggs.

Support for exporters

  • Department for International Trade’s Check How to Export Goods online tool, where you can find information on the UK border, and duties and customs procedures for over 160 markets around the world.
  • VAT guidance about the conditions for zero rating VAT on the goods you export, and what you should do when you export goods in specific circumstances.
  • The free Trader Support Service that you can sign up to, if you move goods between Great Britain and Northern Ireland.
  • An online guidance package developed by DEFRA with HMRC to guide fish exporters through each step of the export journey. There’s a range of information and support available to help you make sure you’re following the new rules including the MMO One Stop Shop.
  • HMRC’s Customs & International Trade Helpline which you can call and speak to an advisor on 0300‌ ‌322‌ ‌9434. The helpline is open from 8am to 10pm Monday to Friday and from 8am to 4pm at weekends. Or you can send HMRC your questions or use their webchat service.
  • The new on demand videos which focus on priority topics for businesses, such as exporting.
  • Specific guidance and training on moving goods into, out of, or through Northern Ireland.
  • For any further queries or general business advice you can contact our dedicated business support helplines.

Helpline numbers

You can contact the government’s Business Support Helpline for free business advice.

England: 0800 998 1098

Scotland: 0300 303 0660

Wales: 0300 060 3000

Northern Ireland: 0800 181 4422

December 2019 technical matters

Making Tax Digital:

Goal posts are constantly changing

It’s already here for VAT registered businesses with turnover > £85k

This is set to arrive in 2021 for Residential Landlords

Capital Gains – tax payments on account!

From 6th April 2020 it appears as though capital gains tax could be payable on account within 30 days of a disposal.  Please keep me informed, just in case.

Finance charges for Landlords:

From 6th April 2020 charges (including re-mortgage fees and interest) will be restricted by 100% (currently 75%)

If you are looking to re-mortgage then acting soon could save you some pennies.

Contact me if you need referring to an adviser.

Air B’n’B:

Local councils are considering a 90 day Air B’n’B rule where you need a licence to let for more than 90 days a year.

IR35 – “Personal Service Companies” PSC:

From 6th April 2020 the following scenario will come into force when:

  • Large Business contracts to -> “Agency”
  • Agency subcontracts to -> “Subbie” – The PSC

Large Business will issue an SDS “Status determination statement”.

It is possible this will say that you are an Employee of the Agency (i.e. you cannot use your limited company)

There is rumour of several work arounds – please do not sign up to anything involving Offshore arrangements and especially not anything that involves a Loan Arrangement without running it past me first. Remember if it sounds too good to be true it almost certainly will be.

Creating a business plan

create business plan

A business plan needs to contain all the information that somebody would need in order to share your vision and also to understand the financial viability of the project. In particular your “break-even” point, best and and worst case scenarios.

A business plan often accompanies a finance application or is part of a proposal to potential investors. The plan could be read by people with a wide array of business skills and it is important therefore to make it as easy to understand as possible.

The Princes Trust offers a wealth of free information that would serve as a useful starting point

Or you could try a subscription service that was recently recommended to me by a regional business manager of a large national bank (we have not used this product at Darrall & Co so cannot endorse it specifically, but the reports derived from this service, that we have been shown, did look impressive):

For a wider read (that will bring you back to the Princes Trust resources) you could try this link:

If you would like some help throughout the process of writing a business plan please get in touch:

Bare Trust

As written by Marsha Haywood of Croner:

There is no definition of a bare trust in the income tax legislation. Put simply, a bare trust is one where the beneficiary has the absolute right to the assets and income, but the trustees are the legal owners effectively holding the property as nominee.

A bare trust enables a person to hold the investment in a trust for the benefit of the named beneficiary and, as trustee, keep an element of control over the investment if the named beneficiary is a minor. The bare trust could be as basic as a bank or building society trustee account in the name of the person who is holding the funds as trustee for the individual.

Income arising from the assets of the bare trust is normally taxable on the beneficiary. However, for bare trusts created on or after 9 March 1999 by parents for their minor child (under 18 and unmarried) where the income on the gifts between the said parent and beneficiary of the trust is £100 or more, the income is taxable on the parent (s629 ITTOIA 2005).

Under self-assessment, trustees of bare trusts do not have to complete tax returns, but the beneficiaries must, if required, declare bare trust income and gains in their personal tax returns and account for any income due tax or capital gains tax. If, however, bare trustees wish to make a self-assessment return of income, they may do so, but may not include capital gains or capital losses, such gains and losses must be notified by the beneficiaries in their personal returns (See HMRC’s Self Assessment Manual SAM123020). If the trustees and all the (adult) beneficiaries of a bare trust wish to report the income in this manner, they are required to notify the trust district dealing with the trust’s tax affairs, and to follow the same course consistently year on year. Either way, the obligation to notify HMRC of tax due on trust income and gains remains that of the beneficiaries (or their parents/guardians whilst they are unmarried minors).

My client and his wife own a house in Devon and a flat in London. My client stays at the London flat for three/four nights only in working weeks but they made a PPR election nominating the London flat when they purchased it. The Devon property is my client’s family home and they are in the process of selling that property and buying a new home in Devon. Does nominating the London flat as their main residence mean this couple will now pay the additional 3% Stamp Duty Land Tax on their new home in Devon?

stamp duty

Find the answer here:

Convert from spreadsheets

Convert spreadsheet

Uploading your financial data to the Cloud may seem daunting. But recording business related transactions digitally, rather than in a spreadsheet, has its benefits for you and your business.

Plus, we’re here to help move your accounts into the digital age with minimal disruption.

At Darrall & Co we understand that each business has a unique approach to maintaining their books and will tailor the system to suit your needs.

Click here to find out how we can help: