Brexit’s impact on post-COVID SMEs
When the UK left the EU, customs union and VAT area, the UK-EU Trade and Co-operation Agreement (TCA) came into effect.
The changes are proving challenging for SMEs who face new complex customs processes, regulations and VAT requirements.
UK businesses will likely face these challenges in the coming years with additional legislation and new technologies expected to be introduced by both parties in the future.
The biggest impact of Brexit for businesses is having to learn of customs declarations, licenses, rules of origin and more. What used to be quite simple for many, is now quite complicated.
All exporters must also identify products with harmonised coding with the wrong code affecting rates, approvals, licenses and processing.
All UK exports to the EU are now subject to customs declarations. The changes have seen many small businesses look to employ intermediaries to help them through documentation.
Alternatively, companies can register with the National Export System (NES) to electronically submit declarations themselves. However, additional certificates may also be required for successful export.
These new requirements for EU trade have also caused affected supply chains with companies still being unprepared following the pandemic.
At L Wood, we can help ensure you a comprehensively covered for any imports or exports to take at least one stress away from you in this complicating process.
Many people play the game of risk when it comes to exporting but just because it has left your premises does not mean it is no longer your problem.