Although many of the tax implications of Brexit are currently unknown, it is VAT and customs duties which are most likely to be affected. As these are based on EU law, Brexit provides an opportunity for the UK government to make legislative changes to these taxes. In this guide, TAX guide 21/17, The tax implications of Brexit, ICAEW's Tax Faculty outlines the potential consequences.
Note too that our membership of the single market cuts down many more of the formalities businesses may otherwise face. In the world of tax we worry about the administrative burden of the system as much as the amounts of tax and duties to be paid.
We set out here just some of the challenges ahead.
In particular, we look at:
Also included are links to other guidance material on the ICAEW, HMRC, EU and OECD websites.
When VAT Mini One Stop Shop was being designed and negotiated over, it was said that the UK was opposed to the complexities this introduced. So presumably the UK government will be keen that this is one area where regulatory alignment can be dispensed with come March 2019?