From 15 March 2021 a Brexit Support Fund for small and medium enterprises (SMEs) is accepting applications for grants of up to GDP 2,000 to assist with adaptation to new customs and tax rules that now apply when trading with the European Union (EU). The fund can give practical support to SME traders for training for new rules on customs, rules of origin and value added tax (VAT) processes.
SMEs that trade only with the EU are effectively encountering import and export processes for the first time. These SMEs are now having to cope with new, unfamiliar paperwork and administrative costs when they trade with EU countries. Many of them will need professional advice and will therefore incur additional fees. The government is therefore encouraging them to submit applications for grants from the support fund.
The grant can be used for training on how to complete customs declarations; how to manage customs processes and use customs software and systems; or aspects related to import and export including VAT, excise and rules of origin. The grant could be used for professional advice on customs, excise, import VAT or declarations on safety and security.
The business must be established in the UK and have been established there for at least twelve months before applying, or currently hold Authorised Economic Operator status; it should not previously have failed to meet its tax or customs obligations; and must have no more than 500 employees and turnover of no more than GBP 100 million. The business should be importing or exporting goods between Great Britain and the EU or between Great Britain and Northern Ireland.
The business should either intend to complete import or export declarations internally for its own goods or need additional capability internally to effectively import or export, for example in connection with advice on rules of origin or on dealing with a supply chain.
The UK government is also helping businesses in various sectors through meetings held by the Brexit Business Taskforce and regular meetings of the Seafood Exports Working Group which discusses issues raised by businesses in the industry. There are also helplines for business, regular webinars with policy specialists and an online Brexit Checker Tool where businesses can access a list of actions they need to take. There is a Trade Support Service supporting businesses moving goods between Great Britain and Northern Ireland.
SMEs can also access a guarantee scheme under which the UK government can provide an 80% guarantee in relation to financial support from lenders to help with general exporting costs, up to a maximum of GBP 25 million.