HMRC confirm VAT changes for No Deal Brexit

HMRC have confirmed proposals for VAT100 if there is a no deal Brexit.

"Talking today it seems unlikely that there will be a No Deal Brexit", said John Hemming CEO of Cirrostratus Exedra who operate the Vat Direct MTD and cloud cashbook accounting system.

"However, if there is then there will be important changes to the VAT100 form.  I am not sure that people understand what these changes are likely to be."

HMRC propose that Boxes 8 and 9 change to include the value of all exports (8) and all imports (9) of goods. excluding VAT.  Box 4 will cover VAT reclaimed on all purchases (including any imports) and Box 2 will include VAT due on imports accounted for through postponed accounting.

"Amidst all the other chaos that would result from 'no deal' there is this extra bit of short notice accounting chaos as well to look forward to", said Mr Hemming.

"If people have a VAT period that straddles 31st October then they will need to account for VAT on the old basis up to 10.59pm on 31st October 2019 and on the new basis for the rest of the period."

"Obviously this is not an issue for those businesses that don't import or export goods.  However, for those businesses that do trade internationally in goods this is a factor they need to raise with their software providers."

HMRC have released guideance of VAT returns in a no deal Brexit.

https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-impo...