| This is Brexit on 20:18 - Jan 23 with 2154 views | kentsouthampton |
Move to EU to avoid Brexit costs, firms told
Exporters advised by Department for International Trade officials to form EU-based companies to circumvent border issues
British businesses that export to the continent are being encouraged by government trade advisers to set up separate companies inside the EU in order to get around extra charges, paperwork and taxes resulting from Brexit, the Observer can reveal.
In an extraordinary twist to the Brexit saga, UK small businesses are being told by advisers working for the Department for International Trade (DIT) that the best way to circumvent border issues and VAT problems that have been piling up since 1 January is to register new firms within the EU single market, from where they can distribute their goods far more freely.
The heads of two UK businesses that have been beset by Brexit-related problems have told the Observer that, following advice from experts at the Department for International Trade, they have already decided to register new companies in the EU in the next few weeks, and they knew of many others in similar positions. Other companies have also said they too were advised by government officials to register operations in the EU but had not yet made decisions.
Andrew Moss, who runs Horizon Retail Marketing Solutions, based in Ely, Cambridgeshire, and selling packaging and point-of-sale marketing displays in the UK and to EU customers, is registering a European company Horizon Europe in the Netherlands in the next few weeks, on the advice of a senior government adviser.
This will mean laying off a small number of staff here and taking on people in the Netherlands.
Referring to discussions with a senior DIT adviser on trade, Moss said: “This guy talked complete sense. What I said to him was, have I got another choice [other than to set up a company abroad]? He confirmed that he couldn’t see another way. He told me that what I was thinking of doing was the right thing, that he could see no other option. He did not see this as a teething problem. He said he had to be careful what he said, but he was very clear.”
Moss said it was now clear that Brexit was not about winning back control from the EU but investing in it to survive.
Geoffrey Betts, managing director of Stewart Superior Ltd, a company in Marlow, Bucks, which sells office supplies to UK and continental customers, said he had also decided to set up a company in the Netherlands for the same reasons.
He had also spoken to an official at the Department for International Trade before making his decision and received the same advice. “When the government said it had secured free trade, it was obvious it was nothing of the sort,” said Betts. VAT issues, new charges on moving goods and more bureaucracy all added up to an “administrative nightmare”, he said.
By moving operations into the EU and shipping out large consignments from the UK to their new European operations, the businesses can not only avoid cross-border delays and costs on every single small consignment they send, but can also defuse VAT problems that are currently hitting them and their European customers hard.
The Department for International Trade was approached for comment but did not respond.
Yesterday, as the impact of leaving the single market and customs union on 1 January became ever more clear, the Financial Times reported that the cost of a £12 bottle of wine in UK shops could rise by up to £1.50 a bottle because of the extra bureaucracy and charges affecting imports.
In a further blow to the government’s idea of “global Britain” after Brexit, the chances of signing a swift UK/US trade deal also appeared to be ebbing away after President Joe Biden’s nominee for Treasury Secretary, Janet Yellen, made clear the president had other more pressing domestic economic priorities than international trade deals.
Rachel Reeves, shadow chancellor of the Duchy of Lancaster and shadow minister for the Cabinet Office, said: “Once again we see this government’s sheer incompetence and lack of planning holding British businesses back and slowing our economic recovery.
“They’ve got to get a grip on this now and stop leaving our businesses out in the cold.” |  | |  |
| This is Brexit on 09:18 - Jan 24 with 2072 views | grumpy |
Better start thinking of a new flag, thanks Brexit. |  | | |
| This is Brexit on 09:25 - Jan 24 with 2054 views | dirk_doone |
| This is Brexit on 09:18 - Jan 24 by grumpy |
Better start thinking of a new flag, thanks Brexit. |
Regardless of the fact that it was going to make our country much poorer, the fact it was going to cause it to disintegrate was the main reason I was so anti-Brexit. |  |
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| This is Brexit on 09:39 - Jan 24 with 2049 views | Berber |
| This is Brexit on 20:18 - Jan 23 by kentsouthampton |
Move to EU to avoid Brexit costs, firms told
Exporters advised by Department for International Trade officials to form EU-based companies to circumvent border issues
British businesses that export to the continent are being encouraged by government trade advisers to set up separate companies inside the EU in order to get around extra charges, paperwork and taxes resulting from Brexit, the Observer can reveal.
In an extraordinary twist to the Brexit saga, UK small businesses are being told by advisers working for the Department for International Trade (DIT) that the best way to circumvent border issues and VAT problems that have been piling up since 1 January is to register new firms within the EU single market, from where they can distribute their goods far more freely.
The heads of two UK businesses that have been beset by Brexit-related problems have told the Observer that, following advice from experts at the Department for International Trade, they have already decided to register new companies in the EU in the next few weeks, and they knew of many others in similar positions. Other companies have also said they too were advised by government officials to register operations in the EU but had not yet made decisions.
Andrew Moss, who runs Horizon Retail Marketing Solutions, based in Ely, Cambridgeshire, and selling packaging and point-of-sale marketing displays in the UK and to EU customers, is registering a European company Horizon Europe in the Netherlands in the next few weeks, on the advice of a senior government adviser.
This will mean laying off a small number of staff here and taking on people in the Netherlands.
Referring to discussions with a senior DIT adviser on trade, Moss said: “This guy talked complete sense. What I said to him was, have I got another choice [other than to set up a company abroad]? He confirmed that he couldn’t see another way. He told me that what I was thinking of doing was the right thing, that he could see no other option. He did not see this as a teething problem. He said he had to be careful what he said, but he was very clear.”
Moss said it was now clear that Brexit was not about winning back control from the EU but investing in it to survive.
Geoffrey Betts, managing director of Stewart Superior Ltd, a company in Marlow, Bucks, which sells office supplies to UK and continental customers, said he had also decided to set up a company in the Netherlands for the same reasons.
He had also spoken to an official at the Department for International Trade before making his decision and received the same advice. “When the government said it had secured free trade, it was obvious it was nothing of the sort,” said Betts. VAT issues, new charges on moving goods and more bureaucracy all added up to an “administrative nightmare”, he said.
By moving operations into the EU and shipping out large consignments from the UK to their new European operations, the businesses can not only avoid cross-border delays and costs on every single small consignment they send, but can also defuse VAT problems that are currently hitting them and their European customers hard.
The Department for International Trade was approached for comment but did not respond.
Yesterday, as the impact of leaving the single market and customs union on 1 January became ever more clear, the Financial Times reported that the cost of a £12 bottle of wine in UK shops could rise by up to £1.50 a bottle because of the extra bureaucracy and charges affecting imports.
In a further blow to the government’s idea of “global Britain” after Brexit, the chances of signing a swift UK/US trade deal also appeared to be ebbing away after President Joe Biden’s nominee for Treasury Secretary, Janet Yellen, made clear the president had other more pressing domestic economic priorities than international trade deals.
Rachel Reeves, shadow chancellor of the Duchy of Lancaster and shadow minister for the Cabinet Office, said: “Once again we see this government’s sheer incompetence and lack of planning holding British businesses back and slowing our economic recovery.
“They’ve got to get a grip on this now and stop leaving our businesses out in the cold.” |
Non EU companies have been doing this for decades, typically a single company that has distribution capabilities, they are called Commisionaire Arrangements, and it is no big deal. They handle all the EU tax and VAT matters as well, and show a minimal profit, typically 1-2% so as to keep the profits in lower tax areas. |  | | |
| This is Brexit on 11:22 - Jan 24 with 2032 views | 1885_SFC |
| This is Brexit on 09:18 - Jan 24 by grumpy |
Better start thinking of a new flag, thanks Brexit. |
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| This is Brexit on 17:03 - Jan 24 with 1974 views | kernow |
| This is Brexit on 11:22 - Jan 24 by 1885_SFC |
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You're good on photoshop 1885.
Something along the lines of George slaying the dragon.
Waiting with expectation. |  | | |
| This is Brexit on 17:20 - Jan 24 with 1964 views | 1885_SFC |
| This is Brexit on 17:03 - Jan 24 by kernow |
You're good on photoshop 1885.
Something along the lines of George slaying the dragon.
Waiting with expectation. |
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| This is Brexit on 18:23 - Jan 24 with 1944 views | kernow |
| This is Brexit on 17:20 - Jan 24 by 1885_SFC |
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Number 2 gets my vote.
Excellent work.  | | | |
| This is Brexit on 18:26 - Jan 24 with 1942 views | kernow |
Number 2?
Number 1 definitely. | | | |
| This is Brexit on 18:49 - Jan 24 with 1928 views | grumpy |
| This is Brexit on 17:20 - Jan 24 by 1885_SFC |
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Dear oh dear.... | | | |
| This is Brexit on 15:10 - Mar 1 with 1787 views | DorsetIan |
The thing that gets me about all this fish stuff, is that all the Brexit supporters said that us bedwetters didn't need to worry about the few 'bumps in the road' because the great British 'blitz' spirit would see us all pull together to get us through any difficult times.
So what I want to know is are we all out there buying more fish and shellfish to help out those fishermen who are finding it harder to sell to Europe now?
In terms of a blitz spirit buying a few more prawns and cuttlefish doesn't seem like too much to ask.
Perhaps the government needs a slogan.
'Eat fish for victory!' maybe or 'Your Coley needs you!' | |
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| This is Brexit on 16:21 - Mar 1 with 1763 views | inthebox |
| This is Brexit on 15:10 - Mar 1 by DorsetIan |
The thing that gets me about all this fish stuff, is that all the Brexit supporters said that us bedwetters didn't need to worry about the few 'bumps in the road' because the great British 'blitz' spirit would see us all pull together to get us through any difficult times.
So what I want to know is are we all out there buying more fish and shellfish to help out those fishermen who are finding it harder to sell to Europe now?
In terms of a blitz spirit buying a few more prawns and cuttlefish doesn't seem like too much to ask.
Perhaps the government needs a slogan.
'Eat fish for victory!' maybe or 'Your Coley needs you!' |
You might be on to something there Dorset, they should start dishing out cuttlefish sandwiches to kids at break time instead of lukewarm milk, oh they don't even do that now. But they won't because Tories are too fu$kin tight. | | | |
| This is Brexit on 23:01 - Mar 12 with 1658 views | dirk_doone |
It's fairly obvious that Brexit has been disastrous for the UK economy but on the other hand it has been great for our vaccination programme so, overall, it balances out. The EU may become wealthier but their vaccination programme has been a shambles. Whatever your political persuasion, you have to admit that by placing large advance orders with every company researching coronavirus vaccines, the UK government was ahead of most other countries.
So, although we were sold Brexit as a money maker, it has been a life saver but a money loser. I'd say the pros and cons are 50/50 now and it's difficult to predict how things will pan out in the future.
https://www.independent.co.uk/news/uk/politics/brexit-poll-trade-savanta-comres- [Post edited 12 Mar 2021 23:05]
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| This is Brexit on 23:45 - Mar 12 with 1642 views | Bicester_North |
| This is Brexit on 23:01 - Mar 12 by dirk_doone |
It's fairly obvious that Brexit has been disastrous for the UK economy but on the other hand it has been great for our vaccination programme so, overall, it balances out. The EU may become wealthier but their vaccination programme has been a shambles. Whatever your political persuasion, you have to admit that by placing large advance orders with every company researching coronavirus vaccines, the UK government was ahead of most other countries.
So, although we were sold Brexit as a money maker, it has been a life saver but a money loser. I'd say the pros and cons are 50/50 now and it's difficult to predict how things will pan out in the future.
https://www.independent.co.uk/news/uk/politics/brexit-poll-trade-savanta-comres- [Post edited 12 Mar 2021 23:05]
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Exports to the EU have taken a big hit so far but i reckon it’s too early to proclaim that Brexit has been a disaster for the UK economy.
Just like knee jerk reactions to football matches, immediate proclamations of doom or triumph in economics can be unwise | |
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| This is Brexit on 00:18 - Mar 13 with 1624 views | dirk_doone |
| This is Brexit on 23:45 - Mar 12 by Bicester_North |
Exports to the EU have taken a big hit so far but i reckon it’s too early to proclaim that Brexit has been a disaster for the UK economy.
Just like knee jerk reactions to football matches, immediate proclamations of doom or triumph in economics can be unwise |
The stats show very clearly that it has been so far but perhaps it won't be in the future. That is what is too early to judge. But on the plus side, history shows that economies recover from most blows over time. [Post edited 13 Mar 2021 0:35]
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| This is Brexit on 09:51 - Mar 13 with 1552 views | DorsetIan |
| This is Brexit on 00:18 - Mar 13 by dirk_doone |
The stats show very clearly that it has been so far but perhaps it won't be in the future. That is what is too early to judge. But on the plus side, history shows that economies recover from most blows over time. [Post edited 13 Mar 2021 0:35]
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The concern is whether the impact in relation to EU trade will recover any time soon. If it doesn’t, then we will be reliant on an increase in trade with more far flung places, and it will take a long time for that trade to fill the gap.
Impression I get is that many small exporters to the EU have now been priced out by the added bureaucracy (or needing £180 vets certificate in order to send a £30 box of cheese) and many larger businesses are establishing EU subsidiaries/distribution hubs, with the loss of UK jobs that that brings.
Meanwhile, I believe we are just waiving all the red tape on incoming stuff to make sure our shelves don’t empty.
If only we could have seen some of this coming. | |
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| This is Brexit on 16:05 - Mar 14 with 1501 views | squidofdespair |
| This is Brexit on 09:51 - Mar 13 by DorsetIan |
The concern is whether the impact in relation to EU trade will recover any time soon. If it doesn’t, then we will be reliant on an increase in trade with more far flung places, and it will take a long time for that trade to fill the gap.
Impression I get is that many small exporters to the EU have now been priced out by the added bureaucracy (or needing £180 vets certificate in order to send a £30 box of cheese) and many larger businesses are establishing EU subsidiaries/distribution hubs, with the loss of UK jobs that that brings.
Meanwhile, I believe we are just waiving all the red tape on incoming stuff to make sure our shelves don’t empty.
If only we could have seen some of this coming. |
Brexit thickies f-ck-d it up |  | | |
| This is Brexit on 19:04 - Mar 14 with 1480 views | kernow |
| This is Brexit on 16:05 - Mar 14 by squidofdespair |
Brexit thickies f-ck-d it up |
The thick ones don't know what's going on and the clever ones don' t give fukk. | | | |
| This is Brexit on 15:36 - Mar 16 with 1437 views | dirk_doone |
No more retiring to Spain:
Spain has been accused of exploiting Brexit red tape and sending people packing. Michel Euesden, who runs the Euro Weekly newspaper in Fuengirola, said that "removal companies have never been busier".
The flight of Britons came after post-Brexit rules limited stays of 90 days within every 180 days.
And anyone wishing to become a resident will have to prove earnings of £2,000 a month plus £500 more for each dependent.
UK driving licences are no longer valid indefinitely - requiring people to take a test in Spanish.
It means poorer retirees will be forced back to the UK, placing a greater strain on the NHS and social services. [Post edited 16 Mar 2021 15:41]
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| This is Brexit on 17:29 - Mar 16 with 1396 views | 1885_SFC |
| This is Brexit on 15:36 - Mar 16 by dirk_doone |
No more retiring to Spain:
Spain has been accused of exploiting Brexit red tape and sending people packing. Michel Euesden, who runs the Euro Weekly newspaper in Fuengirola, said that "removal companies have never been busier".
The flight of Britons came after post-Brexit rules limited stays of 90 days within every 180 days.
And anyone wishing to become a resident will have to prove earnings of £2,000 a month plus £500 more for each dependent.
UK driving licences are no longer valid indefinitely - requiring people to take a test in Spanish.
It means poorer retirees will be forced back to the UK, placing a greater strain on the NHS and social services. [Post edited 16 Mar 2021 15:41]
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And worse still - it will mean a big influx of returning OAP's clogging the UK's roads with Honda Jazz's and Hyundai i10's FFS!!!!
Perish the thought!... | |
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| This is Brexit on 18:20 - Mar 16 with 1374 views | kernow |
| This is Brexit on 15:36 - Mar 16 by dirk_doone |
No more retiring to Spain:
Spain has been accused of exploiting Brexit red tape and sending people packing. Michel Euesden, who runs the Euro Weekly newspaper in Fuengirola, said that "removal companies have never been busier".
The flight of Britons came after post-Brexit rules limited stays of 90 days within every 180 days.
And anyone wishing to become a resident will have to prove earnings of £2,000 a month plus £500 more for each dependent.
UK driving licences are no longer valid indefinitely - requiring people to take a test in Spanish.
It means poorer retirees will be forced back to the UK, placing a greater strain on the NHS and social services. [Post edited 16 Mar 2021 15:41]
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A very large proportion of them supported it.
A bit like some of the Cornish who voted for it, now wondering why?
The 'in touch' English government have instantly categorised Cornwall as being in the same league as Kensington and Chelsea when it comes to receiving financial support, so called levelling up. Talk about cutting off your nose because you don' t like what you see in the mirror.
The turkey's will carry on voting for Christmas though.
Depressing, if you let it be so. | | | |
| This is Brexit on 21:24 - Mar 16 with 1342 views | DorsetIan |
| This is Brexit on 15:36 - Mar 16 by dirk_doone |
No more retiring to Spain:
Spain has been accused of exploiting Brexit red tape and sending people packing. Michel Euesden, who runs the Euro Weekly newspaper in Fuengirola, said that "removal companies have never been busier".
The flight of Britons came after post-Brexit rules limited stays of 90 days within every 180 days.
And anyone wishing to become a resident will have to prove earnings of £2,000 a month plus £500 more for each dependent.
UK driving licences are no longer valid indefinitely - requiring people to take a test in Spanish.
It means poorer retirees will be forced back to the UK, placing a greater strain on the NHS and social services. [Post edited 16 Mar 2021 15:41]
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It's all this stuff that depresses me most fundamentally about Brexit. The freedoms and opportunities open to most britons have narrowed considerably. | |
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| This is Brexit on 21:42 - Mar 16 with 1331 views | dirk_doone |
| This is Brexit on 21:24 - Mar 16 by DorsetIan |
It's all this stuff that depresses me most fundamentally about Brexit. The freedoms and opportunities open to most britons have narrowed considerably. |
When you look at it in the cold light of day, Brexit doesn't appear to be any more than self-harming. How anyone ever believed it would do us any good was beyond me but then along came the UK v EU vaccine war, which we appear to be winning.
Apart from that though, it is obviously disastrous for the UK and is probably going to impoverish it and worse still, destroy it. What were we thinking?
We just have to keep clinging on to our victory in the vaccine war which, admittedly was an important one but it has been pointed out that even if we'd remained in the EU, we could have placed exactly the same vaccine orders if we'd wanted to.
Ultimately, Brexit was a dream of restoring the British Empire, which was about as likely to happen as the Italian government recreating the Roman Empire by leaving the EU. [Post edited 16 Mar 2021 21:48]
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