All change! British businesses warned to get ready NOW before 1 January deadline - here's what you need to do

There are new rules for businesses from January 1, 2021 as the UK leaves the single market and customs union.

From January 1, it's all change for companies that move goods between the UK and EU – and it's vital firms start preparing now.

There are new processes, contracts and agreements that need to be in place before businesses can import and export.

From the start of the year, when the UK leaves the single market and customs union, if you send goods from Great Britain to the EU you'll have to complete export declarations.

Ready for 1 January 2021: Sussex-based firm Electronic Temperature Instruments is all set

And if you're bringing in controlled goods, such as animal products, alcohol or tobacco, you'll also have to make declarations.

So too if you're importing anything not on the controlled list – although you may be able to defer this for up to six months.

There are other changes too, making it essential you check what you need to do NOW.

USE THE CHECKLIST TO PREVENT CUSTOMS HOLD-UPS

With ten per cent of its goods heading to the EU each year, the UK's largest thermometer manufacturer can't afford any hold-ups.

So Electronic Temperature Instruments' accountant Erika Marsh has spent the past few months making sure it's ready.

'I've attended the Sussex Chamber of Commerce webinars about the UK transition,' she says.

Accountant Erika Marsh has been working on making sure thermometer firm ETI is ready

'This provided me with a checklist of ten different points, such as making sure we knew our EORI Economic Operators Registration and number and our record-keeping responsibilities.

'Another point was whether we were using a customs broker or filling out our own declarations; we've been using a customs broker for many years.'

Using a broker simplifies exporting, as they are experts at knowing what paperwork is needed.

'What was new, and is in progress as we speak, is that all our invoices will have to include our commodity codes,' adds Erika.

She's confident ETI will be ready, and urges other companies to prepare. 'I'd definitely recommend taking stock of your company's export procedures and going through the checklist. This will help you avoid your goods getting stuck at customs due to not having the correct paperwork.'

WE'RE HOPEFUL THE CHANGE WILL BRING MORE OPPORTUNITIES

Between building Newport's iconic red dragon sculpture and the roof on London's Olympic Stadium, Pro Steel Engineering has managed to find time to prepare for January 1, 2021.

'If you have 50 people on a construction site in Paris, you don't want to be late delivering to them because you've got your paperwork wrong,' says director Richard Selby.

The Welsh company use a freight forwarder who will deal with export declarations.

'You don't want to be late because you got your paperwork wrong': Pro Steel Engineering's Richard Selby says his Welsh firm is ready for the deadline

'We did our GB EORI number on the gov.uk website, which was very straightforward,' says Richard.

'One of the big impacts will be the VAT changes. We took the decision to move our business into monthly VAT returns to try to smooth any of the issues associated with three-month build-ups of VAT.'

It has also written tariff changes into its contracts and been through the Government's checklist (visit gov.uk/transition).

'It was a good reminder. A lot of what was in there, I'd been through before, but it did provoke thoughts: 'Have we done this?'

'It's all coming together and we're hopeful that the change will bring more opportunities.'

NEED TO KNOW: WHAT ALL TRADERS WITH EU MUST DO NOW

Make sure you have a GB EORI

You will need this to complete customs declarations. If you do not yet have one, you can register for free by going to gov.uk/eori

Decide how you're going to make customs declarations

Customs agents, freight forwarders and express operators can help you with declarations to ensure you're providing the necessary information.

See if your imported goods are eligible for staged controls

Most traders with a good compliance record will be able to defer import declarations on most goods for up to six months after January 1, 2021.

Decide how you will account for import VAT when you make a customs declaration

From January 1, 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT return for goods imported from anywhere in the world.

Check if import VAT is due at the border

Import VAT will not be due at the border if goods in a consignment do not exceed £135 in value. The only exceptions will be excise goods and gifts.

Check the Controlled Goods list to see if you need to complete declarations from January.

If your goods are not on the list, you can choose to delay import declarations until July 2021.

Check the UK Government's tariff tables and consider how your trade will be affected

From January 1, 2021, there will be new rates of customs duty for imports called the UK Global Tariff.

To find out what your company needs to do, go to gov.uk/transition