THE BLICK ROTHENBERG BREXIT NEWSROOM TEAM set up to assist journalists

OVER RECENT WEEKS BLICK ROTHENBERG HAS RECEIVED NUMEROUS CALLS FROM BUSINESS AND FINANCIAL JOURNALISTS ASKING FOR COMMENT ON BOTH BUSINESS AND PERSONAL TAX ISSUES REGARDING BREXIT.

AS A RESULT WE HAVE SET UP THE BLICK ROTHENBERG BREXIT NEWSROOM AS WE HAVE ALWAYS DONE WITH ISSUES LIKE THE BUDGET. WE HAVE PUT TOGETHER A TEAM OF EXPERTS WHO CAN COMMENT ON VARIOUS ISSUES WHETHER THE COUNTRY DECIDES TO STAY IN THE EU OR LEAVE.

FROM TODAY THAT TEAM WILL ISSUE COMMENT AND PRESS RELEASES WHEN THEY FEEL THAT WHAT THEY HAVE TO SAY WILL BE OF BENEFIT TO JOURNALISTS AND NEWSROOMS BOTH IN THIS COUNTRY, EUROPE, AND THE REST OF THE WORLD.

THE EXPERTS HAVE BEEN SPECIFICALLY CHOSEN BASED ON THEIR INDIVIDUAL EXPERTISE AND THE SORTS OF QUESTIONS THAT WE HAVE ALREADY BEEN ASKED.

BELOW THEY HAVE GIVEN THEIR CURRENT THOUGHTS ON A VARIETY OF ISSUES BUT IF YOU AS A JOURNALIST OR NEWSROOM HAVE A SPECIFIC QUESTION THEN PLEASE FEEL FREE TO CONTACT THEM DIRECT OR CONTACT ME.

OUR INITIAL EXPERTS ARE:

Alex Altman: German and European business:

“The increased fears around a potential no-deal Brexit on 31 October has sent shock waves across Europe with strong signs of huge economic damage across the continent. The German economy is close to edging into a recession, which would be the first one since the global financial crisis in 2008. The UK is Germany’s biggest export market in the EU. German exports to the UK have already decreased over the last three years and a no-deal Brexit with potential trade barriers, like a different customs regime and regulatory divergence, will damage the German-British trading relationship further. German businesses have continuously requested an end to the uncertainty an supported the Withdrawal Agreement negotiated between the EU and the UK Government since it would provide clarity over the trading relationship over the next few years. A no-deal Brexit would certainly see a further decrease in exports and investments to the UK, creating an economic downturn across Europe”.

Telephone: 0207 544 8747

Alan Pearce: VAT:

“In the run up to 29 March, the Government issued a raft of guidance on how VAT and Customs procedures will work in the event of a no deal Brexit. These comprised a number of simplifications to speed up the process of importing goods (including the temporary withdrawal of customs duty charges for the vast majority of good). However, there will inevitably be a lot of confusion, delay and additional administrative costs associated with the more complex areas of change that Brexit will bring.

Telephone: 0207 544 8884

Simon Sutcliffe: Customs

Transitional Simplified Procedures (TSP) is a very simple registration process heralded by HMRC for UK traders currently moving goods from the EU into the UK who wish to continue these movements as ‘seamlessly’ as possible. TSP will be enacted after Brexit to ensure that traders who have registered can ‘import’ their goods across the frontier with no immediate documentary or monetary interdiction by HMRC. HMRC have negated the requirement for TSP registered importers to hold a guarantee (Deferment Account) until 6 months after TSP takes effect. Although it is commendable that HMG is seeking to maintain a degree of frictionless trade, the potential impact on the Treasury is obvious. Movements that are not covered by any suitable guarantee as to payment of the relevant duties will mean that HMRC will be pressured to try and collect any unpaid duty six months later. Problems such as customs undervaluation and mis-declaration may go unnoticed for many months. Additionally, the interim UK Schedule of goods (tariff), which sets the majority of goods at a nil rate of duty, means that the benefit to the UK of collecting and keeping any revenues (instead of sending it to the EU as at present) is lost – certainly in the short to medium term - and also means years contesting complex and costly disagreements in the WTO.

Telephone: 0207 544 8981

Robert Salter: Global Mobility Tax:

“BREXIT provides a real challenge to both employers and the self-employed. It is quite possible, for example, that UK-based workers who are seconded overseas following BREXIT could become liable to double social security contributions (i.e. both UK and foreign contributions) on the same income and with no offsetting credits being available, if there is a no-deal BREXIT. This is in contrast to the existing position, where social security is, per EU law, only ever payable in one location.”

Telephone: 0207 544 8706

Fiona Fernie: Personal Tax and dispute resolution:

“The relentless pressure on businesses and high net worth individuals from HMRC is likely to continue unabated, whatever the outcome of the Brexit negotiations. The data inflow from the automatic exchange of information under the Common Reporting Standard (CRS) is now clearly having an impact, with HMRC opening an increased number of enquiries based on that data. The UK’s involvement in CRS is not based on its membership of Europe and therefore nothing is likely to change in the world of HMRC investigations.”

Telephone: 0207 544 8994

Tim Shaw: Corporate Tax:

“Following a no deal Brexit, UK companies with investments in the EU could find their overall corporate tax costs increasing. Once the UK has left the EU, UK companies may face increased exposure to local withholding taxes on dividends and interest paid to them from EU sources and, to the extent that such taxes cannot be offset against UK corporation tax liabilities, tax leakage may arise.”

Telephone: 0207 544 8983