Brexit updates 29 December 2020
As Brexit arrangements are fast-moving, we want to keep you updated on significant developments. Today's updates affect business travel, payments and qualifications.
From 1 January 2021, there will be new rules affecting citizens and businesses within the UK.
We have recently created a Brexit Bundle which will help you prepare your business and build resilience with:
1. a tool to build a personalised list of actions
2. a shipping tool sheet helping with couriers, customs agents, tax and duty
3. guides covering finance, regulations, workforce, trade, data and more
As this is a developing topic with frequent changes, we are constantly updating our guides to bring you the most up to date information for you and your business. In our bulletins over this holiday period, we'll be keeping you updated with any significant changes. For updates as and when they happen, you can check on gov.uk and sign up for alerts if you like.
On 24 December, the UK Government agreed a trade deal with the EU, meaning businesses will be able to trade smoothly, selling their goods to the EU, following the end of the transition period.
The deal will help to protect jobs in the UK, from financial services to automotive manufacturing. People will also be able to continue buying goods from Europe, tariff free.
Some of the main points of the deal are:
- Zero tariffs and zero quotas on trade in goods between the UK and EU
- It enables streamlined customs arrangements to allow for the smooth flow of goods at the border
- It allows for ongoing cooperation around public, animal and plant health, limiting technical barriers to trade
- The deal includes specific arrangements that will bring economic value to sectors like medicines and organic product
You can find more information about the deal here.
The agreement means there will be zero tariffs or quotas on any trade between the UK and EU, where goods meet the relevant rules of origin.
This includes modern and appropriate rules of origin, allowing for British manufacturers to use significant levels of input from abroad in British products.
A framework for professional qualifications has been secured, which means the UK and EU may agree arrangements (much like the Mutual Recognition Agreements) that cover the UK and all 27 EU Member States. Once an arrangement is adopted under the Free Trade Agreement (FTA), it will enable UK professionals to secure recognition of their professional qualifications within EU Member States.
The agreement will allow for professional bodies and associations to submit joint recommendations for arrangements that would be adopted under the FTA. Arrangements will be implemented on profession-by-profession basis and will depend upon the cooperation of both sides.
Business travel in the EU
From 1 January 2021, any UK-qualified professionals who want to supply their services in the EU will need to seek recognition for their qualifications using the rules of the EU member state in which they are working.
The UK and EU have agreed a deal that will allow business travellers and service providers to travel with legal certainty when they do short-term business between the UK and EU. The deal will be a lot like the one currently in place between the EU and Canada and Japan.
The deal will mean:
- Any short-term business travel (of up to 90 days in a six-month period) can be carried out without the need of a work permit or economic needs test, meaning there will be considerably less admin duties for business travellers
- Clear rules for business travel, meaning the UK and EU member states have transparent visa application processes for longer-term business travel
- Services will be able to be delivered in person, without fear of discrimination, meaning there will be no nationality requirements for certain roles
- Work-permit exemptions will be available for those travelling to set up firms
- Workers will be able to move from a UK based office to one in the EU and their partners or dependents will be able to join them
- Stability for independent professionals and contractual service providers working on long term projects (up to 12 months)
The deal includes a review clause, meaning it can be reviewed further down the line.
Investors aren’t included in the agreement, meaning the UK and EU will have different approaches to how the Government define the movement of investors under the new point-based immigration system.
The Agreement ensures protection for any capital movements and payments, meaning there will be no restrictions on money flowing in and out of the country.
What do you want to do next?
If you have any questions, please get in touch with one of our UMi advisers on 0330 124 7305 or drop us an email at email@example.com