18 March 2021
A labyrinth in the levels of paperwork now required forces some companies to halt European operations at least temporarily. Business groups have pushed the government since the summer for financial help to deal with these issues after a bruising year of the pandemic.
As a result, the government announced new business support measure: small businesses to be offered grants to cope with Brexit disruption. Such grant will be available for small companies, which trades with EU.
We tried to summarize the key points of such support.
What is the essence of the scheme?
The main idea is to support businesses trading with the EU as many companies struggle with the costs and regulatory burden of Brexit. The government will create a £20m support fund. Companies that trade only with the EU can claim up to £2,000 for practical help to navigate new rules, including training and professional advice.
Who can apply?
Only small business (SMEs) can apply.
Eligibility conditions are:
- have been established in the UK for at least 12 months before submitting the application (UK registered business), or currently hold Authorised Economic Operator status;
- have no more than 500 employees;
- have no more than £100 million turnover;
- companies which import or export goods between Great Britain and the EU, or moves goods between Great Britain and Northern Ireland;
- not have previously failed to meet its tax or customs obligations;
- business must complete (or intend to complete) import or export declarations internally for its own goods or business must use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain).
What to use the grant for
Business can use the grant for training on:
- how to complete customs declarations;
- how to manage customs processes and use customs software and systems;
- specific import and export related aspects including VAT, excise and rules of origin.
It can be used to get professional advice so the business can meet customs, excise, import VAT or safety and security declaration requirements.
How to apply for the CBILS?
The businesscan applyfor the grant online: https://www.customsintermediarygrant.co.uk/sme-brexit-support-fund. Applications have opened on 15 March 2021 and will close on 30 June 2021. However, application can close earlier if all funding is allocated before this date.
Potential extension of support
The government is considering increasingthe size of the fund given the extent of the problems.
Summary
The above-mentioned measure provide up to £2,000 for traders with EU to get training and professional advice. Applications will close on 30 June 2021. However, application can close earlier if all funding is allocated before this date. Therefore, the business should immediately to make decision regarding application process.
For further information on any of the points above contact
Mikita Makayou at mikita@lexefiscal.com, or
Dr. Frank at clifford.frank@lexefiscal.com.