At the end of 2020, the transition period for the United Kingdom comes to an end, during which the final terms of cooperation between London and the European Union are to be settled. We have known for many months that the United Kingdom has left the EU, yet almost until the very end of the transition period the terms of that separation were unclear. Now, however, with only days left until the end of the negotiations, we know more details of the Brexit arrangements and can prepare ourselves for the new reality ahead. What awaits us from 1 January 2021? Let’s find out.
Summary & key takeaways
- From January 2021 the UK introduces a points-based immigration system and ends free movement.
- EU citizens need a visa to stay in the UK for longer than 6 months.
- EU citizens living in the UK must apply for settled status by 30 June 2021.
- Businesses trading with the UK face customs declarations, permits and VAT changes.
Transport and the border situation
One of the more far-reaching changes coming into force from January 2021 is the introduction of a points-based immigration system, which will directly affect people wanting to take up work in the United Kingdom, or to live or study there.
At the end of the year, the free movement of people between the EU and the UK will come to an end. The status of citizens from EU countries will be brought into line with that of people from other countries. This means that for any stay longer than 6 months, you will need to apply for permission to stay in the form of a visa.
Without applying for a visa, you will only be able to visit the British Isles for shorter periods, for tourism, business, private or work-related purposes.
The status of EU citizens living in the United Kingdom
A vital piece of information for people with a European Union passport currently living and staying in the United Kingdom is that if they want to remain in the UK permanently, they must apply for settled status. This status will allow them to stay legally in the United Kingdom after 30 June 2021, which is the final deadline for submitting applications.
A guide for businesses working with the UK
There are four types of businesses that will be affected by the end of the transition period and will have to change the nature of their cooperation with the United Kingdom:
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those selling goods to the UK or providing services there,
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those buying goods or services provided by British companies,
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those using materials and goods originating from the United Kingdom in trade under preferential arrangements with the European Union’s partner countries,
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those transporting goods across UK territory.
Not all the rules have been settled yet, but if your business falls into one of these four categories, you can expect, among other things, the need to submit customs declarations when importing/exporting goods, to provide safety and security customs data, to obtain permits to export/import certain goods, additional formalities relating to excise duty in the UK, and changes in how VAT is accounted for. To find out the details of the new trading rules that apply to you, contact your business partners and the advisory centres operating in your area, and keep up to date with the announcements published on the European Commission’s website.
There is no point waiting for the end of the transition period and for Brexit to become reality - the time to act is now. Prepare the right documents, applications and operating procedures in your business, and don’t let your dealings with the United Kingdom in 2021 catch you off guard.
Sources:
https://www.gov.uk/guidance/the-uks-points-based-immigration-system-information-for-eu-citizens.pl
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