New rules and regulations for small business owners in 2022

Thanks to the Brexit and Covid double-whammy, small businesses have had a lot of changes to contend with over the past two years.

While it should ease in 2022, there are still some significant new rules and regulations to be aware of in the coming year.

Getting to grips with the new rules will help you to avoid any unnecessary fines or delays in your business operations. We’ve rounded up some of the key changes taking place this year.

1st January 2022: New Brexit regulations in place​

The Brexit transition period may have ended on December 31, 2020, but there are still a number of new rules and regulations being introduced that could affect UK traders.

The changes to customs controls have prompted a lively discussion on the UKBF forums, with @fallschirmjaeger commenting:

“Let's see what fun and games will happen with importing from the EU and exporting to the EU over the coming months! I can see headaches coming!”

@Mike Godwin replied: “The UK Gov hopes this system will minimise the risk of lengthy delays at UK ports. Fingers crossed eh!”

Here’s an overview of some of the key rules being introduced that you need to know about:

1. Customs declaration​

Goods coming to Great Britain from EU countries (apart from Ireland) can no longer have delayed import customs declarations.

This means that UK businesses importing goods from the EU will now need to submit customs declarations and pay any duties at the point of import. You can do this yourself or appoint an intermediary, like a customs agent, to deal with your declarations.

More information about customs declaration

2. Border controls​

New rules have been introduced which require ports and other border locations to control goods moving between Great Britain and the EU (except in Ireland).

As a result, your goods will now need to have a valid declaration and received customs clearance, otherwise they won’t be released, and in most cases will not be able to leave the port.

More information about border controls

3. Rules of origin​

If you can provide proof that the goods you import from the EU originate there, or the goods you export to the EU originate in the UK, you may benefit from a reduced rate of Customs Duty under the Trade and Cooperation Agreement (TCA).

Your goods will need to meet the product-specific rules of origin requirements set out in the TCA. These state that they are produced or manufactured in the appropriate country, not where they were shipped or bought from.

Find out more about the different forms of proof of origin that are accepted for imports and exports

4. Commodity codes​

If you import or export goods, they will be classified using a commodity code. These have recently been reviewed and changes to the codes take effect from the start of 2022.

New commodity codes have been an issue for UKBF member @Martin Patfield, who said:

“Just found I had to add RRS01 into the declaration. Import declaration went through ok as usual, but the courier's side couldn't locate it in order to tie up the GMR to the declaration.

“This is going to be a minefield for everyone, as well as the changes from July 2022. Fingers crossed the lorry arrives and makes it through customs tomorrow with no issues.”

Find out more about commodity codes for imports into or exports out of the UK, including how to use the Trade Tariff tool to help you classify your goods

1st April 2022​

Making Tax Digital for VAT​

From April, all UK businesses that are VAT-registered must keep their VAT records digitally, regardless of their turnover. These changes are part of the government's Making Tax Digital (MTD) strategy, which aims to overhaul the tax system.

To comply, your business must:

• Keep VAT records in Making Tax Digital-compatible software
• Keep digital records from 1 April 2022 or the beginning of your VAT period
• Sign up for ‘Making Tax Digital for VAT’ and submit your VAT return through this system

Plastic Packaging Tax​

New taxes are being introduced in April for companies that manufacture or import plastic packaging.

A tax of £200 per tonne will apply to plastic packaging that doesn’t contain at least 30% recycled plastic that is manufactured in or imported into the UK.

Your business will be exempt if it manufactures or imports less than 10 tonnes of plastic packaging per year.

Find out more about the steps to take when deciding if you should pay the tax

Increases to National Minimum Wage and National Living Wage​

If your business employs staff, you’ll need to be aware of the following increases to National Minimum Wage and National Living Wage:

• National Living Wage (23+) – £9.50 (6.6% increase)
• 21-22 year-old rate – £9.18 (9.8% increase)
• 18-20 year-old rate – £6.83 (4.1% increase)
• 16-17 year-old rate – £4.81 (4.1% increase)
• Apprentice rate – £4.81 (11.9% increase)

6th April 2022: Increases to National Insurance contributions and Dividends​

National Insurance contributions (NICs) will increase by 1.25%. The increase will be spent on the NHS and social care in the UK and it will apply to:

• Class 1 (paid by employees)
• Class 4 (paid by self-employed)
• Secondary Class 1, 1A and 1B (paid by employers)

Dividend tax will also increase by 1.25%.

Find out more about NICs increases

1st July 2022: Further Brexit changes introduced​

There will be further Brexit changes introduced from July 2022 that may affect small businesses. These include:

• Full safety and security declarations will be required for all imports
• Export Health Certificates will be required
• Requirements for Phytosanitary Certificates – an official document required for exporting plants, plant products or other regulated articles
• Physical checks on sanitary and phytosanitary goods will also be introduced at Border Control Posts

Will your business be affected by new rules introduced this year?​

Have you had to make changes to make sure you comply with these new rules and regulations? How will it affect the way you do business this year? Share your experience with customs controls by clicking Discuss above or start a thread on one of the other topics in the UKBF forum.