Preparing for a Brexit no deal scenario

Preparing for a Brexit no deal scenario

Tue 28 Aug 2018

The Government has announced the issue of 25 technical notes discussing how various aspects of the economy might operate in the event of a Brexit no-deal scenario. Further technical notes are due in September.  The announcement comments:

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome………

…..We are making good progress on the outstanding issues that need to be resolved before we have concluded the deal on the entirety of Withdrawal Agreement. We remain on track to reach agreement by the autumn and the EU acknowledged in their communication on 19 July 2018 that “it is currently planned that the Withdrawal Agreement would be agreed by the European Union and the United Kingdom in October 2018……

….A ‘no deal’ scenario is one where the UK leaves the EU and becomes a third country at 11pm GMT on 29 March 2019 without a Withdrawal Agreement and framework for a future relationship in place between the UK and the EU…..

…..At the heart of government’s approach to preparing for a ‘no deal’ scenario is a commitment to prioritise stability for citizens, consumers and business, to ensure the smooth operations of business, infrastructure and public services and to minimise any disruption to the economy.”

The technical notes cover the following areas:

  1. Overview
  2. Applying for EU-funded programmes
  3. Civil nuclear and nuclear research
  4. Farming
  5. Importing and exporting
  6. Labelling products and making them safe
  7. Money and tax
  8. Regulating medicines and medical equipment
  9. State aid
  10. Studying in the UK or EU
  11. Workplace rights

Included in the section on Money and tax is a technical note on VAT for business if there is no Brexit deal, while the importing and exporting section has notes on classifying goods for UK trade tariff purposes and customs procedures for trading with the EU.  We cover the technical note on VAT here.  For a further discussion about the tax implications of Brexit for your business, please get in touch with a member of the Mazars international tax or indirect tax teams.