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Import VAT

In the event of a no-deal Brexit then there will be changes to the treatment of import VAT.

If your business is registered for VAT in the UK you will be able to account for import VAT on your VAT return. This means you will pay import VAT on your VAT return instead of when the goods arrive at the UK border.

You will need an Economic Operator Registration and Identification (EORI) number when the goods are imported to the UK

Ban on passing on credit card fees

As of the start of 2018, retailers are no longer allowed to charge extra for taking payment by credit or debit card. This also applies to online payment systems such as Paypal, etc.

The immediate effect of this change was that HMRC stopped accepting tax payments on personal credit cards.

Retailers now have to decide whether to stop accepting credit and debit card payments, absorb the extra costs themselves or charge all customers more to recover the card transaction fees.

The new law only applies to consumers and so businesses can still be charged fees, but this should only be the amount it costs to process the transaction.

It is hoped that new technology will provide cheaper alternative methods of direct payment but until that happens anyone taking payment by credit or debit card are advised to factor these costs into their profit margin calculations.

Don’t forget to auto-enrol

All employers have to auto-enrol eligible employees into a pension scheme. From April 2018, the minimum contribution will increase to 5% of qualifying earnings, of which the employer must pay at least 2%.

The government has also announced the results of a review of how auto-enrolment is operated. It is proposed that auto-enrolment be extended to younger workers so that by the mid 2020’s 18 year olds will be included. They also propose that contributions will be calculated on total earnings rather than just earnings over the national insurance lower earnings limit of £113 per week.

Howell & Co has been assisting Online Profiling Ltd since 2005. They couple efficient service with good practical advice and are always extremely helpful and professional.  
Trevor DawesManaging DirectorOnline Profiling Ltd

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Import VAT

In the event of a no-deal Brexit then there will be changes to the treatment of import VAT. If your business[...]