What’s An EORI Number & Why Might The Government Be Enrolling You For One?

The government have announced that they will take their first step to prepare businesses for a no-deal Brexit.

Currently UK Businesses can freely trade within the EU but, in the result of a no-deal Brexit, that would come to a grinding halt.

HMRC have announced that they will enrol companies with customs identification numbers. This will allow them to keep trading with the EU in the event of a no-deal Brexit.


What Is An EORI Number?

In the next fortnight these businesses will receive their unique EORI number.

This is needed in order to track which companies are trading with the EU and allow the relevant persons to collect duties on these trades.

Letters will start arriving this week, however if your business is not registered for VAT you will have to apply for an EORI number manually.

The move comes after research suggests that around 245,000 UK companies will need an EORI number in the result of a no-deal Brexit. Currently just 72,000 businesses have one.

A further 88,000 will receive an EORI number via this new rollout, leaving a final 85,000 businesses to manually apply.

Businesses without an EORI number will be unable to keep trading with the EU.


The Government Accelerates Preparation

Chancellor Sajid Javid said: “As the Government accelerates its preparation to leave the EU on Oct 31, it is right businesses are prepared too.”

It seems as though the government are now actively trying to prepare businesses in the event of a no-deal Brexit.  He goes on to say:

“There can be no time for delay, which is why HMRC has allocated thousands of businesses with a trading number to ensure they can continue to trade their goods through Europe from day one.”

“This will help ease the flow of goods at border points and support businesses to trade and grow.”

The government are beginning to communicate the clear roadblocks for business owners in the not-too-distant future, whilst attempting to resolve potential problems before they arrive.

However, many believe that the words and actions are plastering over the situation that business owners really face come October 31st, and gestures like this will not be enough.


What Should You Do Next?

If you are registered for VAT and trade with the EU, then expect a letter regarding receiving your unique EORI number if you don’t currently have one.

In the chance that weeks pass by and you still don’t receive your number, but believe you should; you should manually apply directly.

If you are not registered for VAT but believe you will need an EORI number in the event of a no-deal Brexit due to trading with the EU, then you should also look into manually applying for one as soon as possible.

 

Get More Business Blogs Like This

Like Us On Facebook  |  Follow Us On Twitter | Services


Interested In Our Accountancy, Tax, Bookkeeping & Payroll Services?

Get In Touch Below

AccountancyBookkeepingPayroll