The UK is now approaching the end of the transition period on 31 December 2020 and will be entering a new era outside of the EU from 2021 onwards. 
After this date, the UK will no longer be in the EU Single Market or Customs Union and existing free movement arrangements will end. 
A recent study by the Institute of Directors found that almost half of businesses are not yet fully prepared for the end of the Brexit transition in just over two months.
Those that trade with Europe or have a presence in members states could be significantly affected by this sudden change in trading arrangements and so they must prepare themselves.
At present, the UK is yet to complete a free trade deal with the EU and remains at odds over several key issues, which is creating a significant degree of uncertainty for many businesses and individuals.
To prepare for the end of the transition period, businesses should consider the following: 

• The Implications for VAT
• The introduction of tariffs 
• The new requirements for importing and exporting goods
• New border controls
• The needs of EU citizens in their workforce
• The impact on supply chains
• Scenario planning.

In some cases, the Government has already indicated how it intends to manage the UK’s withdrawal, but in other cases, it is yet to clarify its position in hopes that a deal can be reached and matters resolved before the 31 December 2020.
Steps you can take now
Businesses and their employees may need to take action before the transition period ends to make sure they are adequately prepared for whatever may come.
Importing and exporting goods
From 1 January 2021, the process for importing and exporting goods will change. 
In its latest guidance, the Government has laid out the principles for the ‘Core Model’, which relates to all goods imported and exported, regardless of which means of transport are used to move the goods.
The guidance, which is available here, covers the core process of:

• customs declarations
• customs duty
• import VAT
• safety and security declarations.

Under each of these headings, it sets out the actions that businesses should take now, as they will be required to follow these rules regardless of the outcome of the ongoing trade negotiations.
To help businesses adapt, HMRC will introduce the new border controls in the Core Model in three stages up until 1 July 2021. To help prepare for these changes, businesses should:

• Apply for an EORI number 
• Prepare to pay or account for VAT on imported goods
• consider commercial arrangements and terms of trade
• determine the customs value of goods
• considering how customs declarations to HMRC systems will be made and the use of a customs intermediary.

Future travel and work in the EU
From 1 January 2021, there will be new rules to travel to the EU, or Switzerland, Norway, Iceland or Liechtenstein.
Should you or any representatives of your business need to travel to the EU in future you may need to consider the following:

• Check your passport
• Get travel insurance that covers your healthcare
• Check you have the right driving documents
• Tell HMRC you’ll be working in the EU
• Check whether you’ll need to pay social security contributions in the country you’re working in
• Check whether you need indemnity insurance for your employees
• Check you’ve got the right documentation to take goods to the EU.

Employees right to remain in the UK if they are an EU citizen 
Employees from EU member states should check whether they need to apply to the settlement scheme. To do this, they should: 

• Check whether they need to apply to the EU Settlement Scheme 
• Find out what status they have as it may differ depending on their circumstances
• Check what information they’ll need to apply
• Submit an application.

Some EU citizens may be able to stay in the UK without applying – for example, Irish citizens or those with indefinite leave to remain.
The deadline for applying for settled status is 30 June 2021.
It is also recommended that you:

• Check what actions you need to take by visiting uk/transition.
• Sign-up for updates.
• Attend government webinars for additional support by signing up here.

You should also check with your suppliers and customers that they are taking action.
Here to help
Businesses are facing an extremely challenging period ahead, which is further complicated by the current state of the economy, which has been rocked by the global pandemic. 
The uncertainty regarding a free trade deal with the EU means that there are still a lot of variables to the end of the transition period, which is why companies should begin to prepare for all potential scenarios now.
If you’d like to know more about the impact Brexit may have on your business and how we can help, please contact our team.