The Derbyshire Live Business Awards 2022 are fast approaching, and organisations and individuals across Derbyshire are gearing up for the region’s most hotly-anticipated business awards.

This year there are 13 categories for businesses to enter, each one to highlight the different ways in which local companies make an impact in our area.

We spoke to Dains‘ Evolve partner, Lisa Richards, about the firm’s decision to support the Medium Business of the Year category in 2022. Lisa had plenty of information about the challenges that medium-sized businesses which trade internationally are currently facing.

Dains is an accountancy and business advisory firm that specialises in advice and support to growing, owner managed businesses. Derbyshire has had its fair share of successful businesses and the team at Dains believe that driving enterprise is key to the success of the region.

However, many businesses have been dealt a hard blow over the past few years and this has demanded innovation and grit. Whilst Covid-19 has been a challenge at the forefront of business, a new hurdle was thrown into the mix when the UK officially departed from the EU.

The indirect tax team at Dains has expanded to meet the increased demand from SME businesses for customs advice and support with compliance by setting up an in-house customs agency. Its first challenge was to help local businesses with the many teething problems and red tape that had impacted on trade with the EU and Northern Ireland.

We asked them to guide us through the top issues that businesses need to consider when trading with the EU and for help and advice on how to avoid the potential pitfalls of trading with international business partners.



Dains can help your business find its feet amongst all the recent trade changes

Trade & Co-operation Agreement

Under the Trade & Co-operation Agreement, there should be no duty payable on UK origin products supplied to the EU and there should be no duty payable on EU products supplied to the UK. However, if goods are imported into the UK and then re-exported to the EU, duty will become due unless the product has been substantially transformed.

This has resulted in unexpected and unforeseen costs for businesses and impacted on profit margins. This has created an issue with double taxation where duty is incurred and paid twice.

There are a number of customs simplifications which can eradicate the cost of duty and improve commercial performance.

Warehousing

The first of these is warehousing. The use of a customs warehouse can defer the date on which duty is paid or eradicate the cost completely if goods are exported from the UK.

Inward Processing Relief (IPR)

The second of theses simplifications is Inward Processing Relief. If goods are imported into a process, duty can be deferred or avoided. Manufactured or processed goods may be eligible for UK origin which can make them more attractive for the export market.

IPR should also be used if goods are imported by a business for a process such as coating or polishing. Failure to do so could result in duty being payable and irrecoverable VAT arising.

A business cannot recover VAT on importation of products which it does not own. Judicious use of IPR can also help to support UK origin.

Incorrect commodity codes

Using the incorrect commodity code for imported goods could result in the wrong amount of duty being paid. Selecting the optimum commodity code for your goods can sometimes be complex but it is essential that you use the correct one to reflect the use of the product and to ensure you pay the correct tariff.

Origin rules

The origin of a product also dictates the level of duty payable. The origin rules were introduced as part of the Trade & Co-operation Agreement. They are incredibly complex and are dependent on the commodity code used.

The rules of origin requirements are some of the most important rules that businesses need to understand and follow when trading with the EU.



Two shipping crates swinging, one displaying the EU flag, the other displaying the Union Jack
You could be overpaying tax and duties by not having the correct paperwork

Incoterms

Incoterms set out the responsibilities between a seller and a buyer in respect of the costs, risks, and tasks involved in international trade. Supply chains and incoterms need to be understood in order to avoid unnecessary costs.

If a UK business supplies to an EU customer on a DDP basis, it may have a requirement to register for VAT in the member state of the customer.

Business to Customer (B2C) sales into Europe

One of the most problematic issues arising from Brexit concerns the VAT treatment of ecommerce sales to EU consumers.

The EU has introduced some VAT simplifications to facilitate B2C sales across Europe. The Import One Stop Shop (IOSS) is for sales of goods under €150. The One Stop Shop (OSS) is for goods over €150 and requires an overseas VAT registration.

Dains is supporting the Medium Business of the Year Award

Dains is sponsoring the prestigious Medium Business Award as part of the Derbyshire Live Business Awards 2022.

This category brings attention to businesses that have diversified, changed, or adapted. This past year has been a crucial time for businesses, and now more than ever we need to celebrate the commitment and drive it has taken for businesses to excel and find success within the current climate.

Dains provides its clients with a range of support from its professional advisors. With more than 90 years of expertise, Dains has a depth of knowledge which is critical to support a growing client base.

Lisa Richards, Evolve partner at Dains said:

“Derbyshire has had its fair share of well-known businesses that have enjoyed exceptional growth over the past few years and from our experience, it is incredibly exciting as well as being a privilege to be part of this journey.

“We eagerly await the nominees for the awards in 2022 and wish all the nominees the best of luck and hope to meet you very soon.”

The awards will be hosted on the Thursday, October 6, in Derby, celebrating the hard work and innovation of Derbyshire businesses.





Source link