Originally written by Anna Jordan on Small Business
More than a quarter of small exporters have ceased selling to customers in the EU following post-Brexit transition delays.
The Federation of Small Businesses (FSB) warns that what might have been previously dismissed as ‘teething problems’ could become systemic.
A survey of nearly 1,500 small companies carried out by the FSB found that 23 per cent had temporarily stopped selling to the EU while four per cent had halted sales permanently. Eleven per cent of exporters were said to be considering a permanent halt.
The same proportion had set up or were thinking of establishing a presence in a European country to make the process easier. Around nine per cent may secure, or are already using, warehouses in mainland Europe or Northern Ireland for the same purpose.
Small importers have been particularly hard hit by new paperwork as 17 per cent temporarily halt purchases from the EU. What’s more, a massive 70 per cent of importers and exporters say they have suffered delays when moving goods around the EU in recent weeks. More than 30 per cent have lost goods in transit and a slightly higher proportion have had goods held indefinitely at EU border crossings. Of
Tag Archive for Brexit
Hot Business News Today
UK-EU exports fell by over 40% in January 2021
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
UK exports to the EU dropped by 40.7 per cent in January 2021, according to ONS figures.
This was the first month after the Brexit transition ended, with customs rules changing and firms contending with extra paperwork. The ONS added that imports were also down by 28.8 per cent (£6.6bn) in January.
> See also: How Brexit is going to affect your business – #2 exports
Much of this is likely to be what the ONS calls ‘temporary factors’. These include concerns around the outcome of the Brexit deal as well predictions of a third lockdown towards the end of 2020. Stockpiling in anticipation of these events were likely to contribute to the fall.
However, there were no similar falls in Britain’s trade in non-EU countries, suggesting that Brexit has been a greater contributing factor.
Yael Selfin, chief economist at KPMG UK, said that Brexit was the most likely reason for doing less business with EU countries, but she foresees a recovery: “The longer term [Brexit] impact on supply chains will depend on how attractive the UK remains and the competition from other locations within the EU,” she said.
The scale of the drop in exports is beyond what most
Hot Business News Today
UK-EU exports fell by over 40% in January 2021
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
UK exports to the EU dropped by 40.7 per cent in January 2021, according to ONS figures.
This was the first month after the Brexit transition ended, with customs rules changing and firms contending with extra paperwork. The ONS added that imports were also down by 28.8 per cent (£6.6bn) in January.
> See also: How Brexit is going to affect your business – #2 exports
Much of this is likely to be what the ONS calls ‘temporary factors’. These include concerns around the outcome of the Brexit deal as well predictions of a third lockdown towards the end of 2020. Stockpiling in anticipation of these events were likely to contribute to a sharp rise and fall.
However, there were no similar falls in Britain’s trade in non-EU countries, suggesting that Brexit has been a greater contributing factor.
Yael Selfin, chief economist at KPMG UK, said that Brexit was the most likely reason for doing less business with EU countries, but she foresees a recovery: “The longer term [Brexit] impact on supply chains will depend on how attractive the UK remains and the competition from other locations within the EU,” she said.
The scale of the drop in exports is
Hot Business News Today
How to minimise gaps in your supply chain post Brexit
by Daniel Baker • • 0 Comments
Originally written by Daniel Baker on Small Business
Since the final Brexit deadline on December 31, businesses across the UK have had to quickly become familiar with the new trade deal and adapt their supply chain accordingly.
Unsurprisingly, this has not been without disruption.
With a shortage of trucks and hauliers available to transport goods across the border and gaps in understanding of the new legislation across the supply chain, the first two months following Brexit have proven incredibly challenging for many British businesses.
>See also: Half of small business exporters struggling with new rules post Brexit
At Origin, we import some of the parts used to manufacture our aluminium doors and windows from the EU, so access to these materials was our primary concern following the announcement of the deal. Like many businesses, we had plans in place for a host of possible scenarios in anticipation of this, many of which have proven invaluable in the months following the deadline.
However, as Covid-19 taught us in 2020, it’s impossible to prepare for all eventualities, and we have found ourselves having to quickly pivot operations in some areas of the business in order to adapt to the impacts of Brexit that we hadn’t anticipated.
‘The first two
Hot Business News Today
How to minimise gaps in your supply chain post Brexit
by Daniel Baker • • 0 Comments
Originally written by Daniel Baker on Small Business
Since the final Brexit deadline on December 31, businesses across the UK have had to quickly become familiar with the new trade deal and adapt their supply chain accordingly.
Unsurprisingly, this has not been without disruption.
With a shortage of trucks and hauliers available to transport goods across the border and gaps in understanding of the new legislation across the supply chain, the first two months following Brexit have proven incredibly challenging for many British businesses.
>See also: Half of small business exporters struggling with new rules post Brexit
At Origin, we import some of the parts used to manufacture our aluminium doors and windows from the EU, so access to these materials was our primary concern following the announcement of the deal. Like many businesses, we had plans in place for a host of possible scenarios in anticipation of this, many of which have proven invaluable in the months following the deadline.
However, as Covid-19 taught us in 2020, it’s impossible to prepare for all eventualities, and we have found ourselves having to quickly pivot operations in some areas of the business in order to adapt to the impacts of Brexit that we hadn’t anticipated.
‘The first two
Hot Business News Today
Where to find your £2,000 Brexit Support Fund grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that only trade with the EU can apply for a £2,000 grant through the Brexit Support Fund for help with importing and exporting.
The government has made £20m available for the Brexit Support Fund to help small businesses with changes to EU trade rules.
The Brexit Support Fund is meant to help Britain’s 6m small businesses cope with new customs, rules of origin, and VAT rules import that come into force from April and July.
>See also: Half of small business exporters struggling with new rules post Brexit
The existing Customs Grant Scheme will administer the Brexit Support Fund, which will open for applications in March.
What the government calls new import controls will come into effect in three stages up to July 1 2021 to allow traders and hauliers adjust to new red tape. More details can be found in the Border Operating Model.
Businesses do not have to complete new import declarations for up to six months, unless they are moving controlled goods.
Michael Gove, the Chancellor of the Duchy of Lancaster, said: “This new targeted funding will see small businesses get more of the practical support they need to adjust to the new processes and
Hot Business News Today
Where to find your £2,000 Brexit Support Fund grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that only trade with the EU can apply for a £2,000 grant through the Brexit Support Fund for help with importing and exporting.
The government has made £20m available for the Brexit Support Fund to help small businesses with changes to EU trade rules.
The Brexit Support Fund is meant to help Britain’s 6m small businesses cope with new customs, rules of origin, and VAT rules import that come into force from April and July.
>See also: Half of small business exporters struggling with new rules post Brexit
The existing Customs Grant Scheme will administer the Brexit Support Fund, which will open for applications in March.
What the government calls new import controls will come into effect in three stages up to July 1 2021 to allow traders and hauliers adjust to new red tape. More details can be found in the Border Operating Model.
Businesses do not have to complete new import declarations for up to six months, unless they are moving controlled goods.
Michael Gove, the Chancellor of the Duchy of Lancaster, said: “This new targeted funding will see small businesses get more of the practical support they need to adjust to the new processes and
Hot Business News Today
Half of small business exporters struggling with new rules post Brexit
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Half of mainly small business exporters that send goods into the EU are facing difficulties trading post Brexit.
For manufacturers the problems are just as bad, with 51 per cent finding life exporting to Europe more difficult after Brexit, according to a British Chambers of Commerce survey.
Overall, nearly one third of businesses (30 per cent) surveyed said they found trading more difficult in January following Britain’s exit from the EU.
>See also: Half a million businesses at risk of collapse without more support
The main problems cited by exporters over Brexit were increased administration, costs, delays and confusion over what rules to follow.
In particular, the BCC would like to see firms be able to write off what they spend on extra admin and customs costs against their tax bill, and for the government to push back against the EU imposing extra health checks on food and animal exports from April, as well as full customs checks from July.
The BCC would also like to see the EU and UK government work together to try and minimise unhelpful burdens, including aspects of rules of origin and VAT.
The research is the first large survey of how companies are coping
Hot Business News Today
How to avoid paying £130,000 in VAT registration fees if you export to EU
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Businesses selling goods into Europe face having to pay for VAT registration in all 26 EU countries, costing up to £130,000.
Britain left the EU on January 1 and small businesses now have to register for VAT in each country they sell directly to customers in. Plus they will need to have a physical business representative in each country, and not just be brass-plate company.
Given that it costs between £3,000 and £5,000 to register for VAT per EU country, small businesses could be left with a bill of £130,000 just for the right to pay VAT in each territory.
>See also: Local authorities blame government for slow release of Covid-19 grants
Sean Glancy, VAT and indirect taxes partner at accountant UHY Hacker Young, said: “The risk here is that a UK business moving goods to consumers in, for example, Germany, Italy and Austria would have to register for VAT in all of these countries. If that multiplies across Europe, that is a lot of registrations, time, resource, and cost.”
The good news is that this is only until July 1, when the EU will bring in a one-stop-shop for VAT registration throughout Europe, which means UK businesses
Hot Business News Today
Fashion industry struggles for survival due to post-Brexit red tape
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
More than 400 leading figures in the fashion industry are calling on the government for help following post-Brexit red tape and travel restrictions.
The open letter to the Prime Minister comes from respected icons, including model Twiggy and Patrick Grant, judge on the Great British Sewing Bee.
Complex international supply chains and relationships have been ‘strangled’ under the new restrictions.
“Everyone working across the EU, our largest trading partner for imports and exports, will now need
costly work permits for each of the member states they visit and a mountain of paperwork for their
products and equipment. This is a step backwards and out of touch with the realities of how the sector
works,” they wrote in the letter fronted by Fashion Roundtable, an industry forum.
“From travelling to the EU for trade shows to large value shoots and shows happening here in
the UK, red tape delays and costs are impacting our industry already, with work relocating to the EU,
all impacting our opportunities to trade and travel.”
Fashion Roundtable wants the government to add garment workers to the list of ‘shortage occupations’ for UK visas to help fill thousands of vacancies in UK clothing factories. It’s also calling for UK tax