A word on inter-company transfer

[Pawel Kosinski]

Hi Guys,

Bit desperate here for some understanding of the new situation we find ourselves in because of Brexit.

I run a small company, earning a modest amount for myself and trading mostly with EU. Apart from my own company I am also hired by EU-based company to head a R&D software research project in medicine.

In order for me to be able to do my job we need to often exchange expensive equipment between my base here in the UK and the HQ in Poland.

Equipment we often exchange is worth well in excess of £10000 (expensive computers, Hololens 2 kits which are expensive AR goggles used in our research, lab equipment and such). We need to do it this way since we are a small company and we can't afford for everyone to have the best equipment.

It looks now that each time we transfer equipment there will be a customs duty to pay - I somehow missed that during the brexit talks, there was a lot of discussions about tariffs but seems very little on customs? If we have to pay close to 40% of customs duty / vat each time we transfer equipment we will not be able to continue and we will have to pack up.

Or I will simply lose my employment as I am a liability to my employer. It will be far easier for them to find another research project manager in EU than to worry about dumping money into unreasonable customs duty charges.

Am I missing something here or does it mean that all SMEs have essentially lost any reasonable ability to trade / do business with the EU (unless of course you only shift data or are a multi-million pound business)?

Any help, or pointing to any information would be greatly appreciated. I talked with HMRC and they were unhelpful and misinformed. I received more information calling UPS than HMRC :|

 

[Mr D]

SMEs can still trade with the EU. Just there are costs to be borne now we are outside.
Most are not going to be shifting equipment around like yours but some are choosing to open a base in the EU to do what cannot be done at a distance. Including on government advice.

In your instance yes may well be too expensive to ship equipment around.
So the company saves money by not shifting equipment and just shifting staff. Or as you say recruiting for one in the customs area.

 

[Pawel Kosinski]

SMEs can still trade with the EU. Just there are costs to be borne now we are outside.
Most are not going to be shifting equipment around like yours but some are choosing to open a base in the EU to do what cannot be done at a distance. Including on government advice.

In your instance yes may well be too expensive to ship equipment around.
So the company saves money by not shifting equipment and just shifting staff. Or as you say recruiting for one in the customs area.

Three cheers for Brexit then! I mean you answered my question, so that's it? Quit your job or just pack up your home and move? Those are our options. Just wow.

 

[Mr D]

Three cheers for Brexit then! I mean you answered my question, so that's it? Quit your job or just pack up your home and move? Those are our options. Just wow.

What answer were you looking for? Perhaps someone can post it for you.

Some things will not have been a surprise - WTO deal would have meant the same for you?

 

[eteb3]

Any use? Check the 'related content' in the sidebar on the right, too.
https://www.gov.uk/guidance/apply-to-import-goods-temporarily-to-the-uk-or-eu

Eligible goods:
https://www.gov.uk/government/publi...sion-eligible-goods-and-conditions-for-relief

 

[Pawel Kosinski]

Some things will not have been a surprise - WTO deal would have meant the same for you?

Is it meant to say 'be happy with what we got, because it could have been a lot worse'? I mean you can look at it like that - its your right. However, there are so many business that have complex relationship with the EU and contribute a lot to the UK economy. I now am unable to do my work therefore I will stop contributing in taxes and I will take my innovation somewhere else - but the thing is I do not want to, I shouldn't have to, its my home.

Anyway, we have diverged from the subject. If anyone else can shed any light on this situation or have a brilliant idea of how to overcome it I would love to hear from you.

 

[Pawel Kosinski]

Any use? Check the 'related content' in the sidebar on the right, too.

That is very interesting - I will investigate that! Thank you!

 

[Mr D]

Is it meant to say 'be happy with what we got, because it could have been a lot worse'? I mean you can look at it like that - its your right. However, there are so many business that have complex relationship with the EU and contribute a lot to the UK economy. I now am unable to do my work therefore I will stop contributing in taxes and I will take my innovation somewhere else - but the thing is I do not want to, I shouldn't have to, its my home.

Anyway, we have diverged from the subject. If anyone else can shed any light on this situation or have a brilliant idea of how to overcome it I would love to hear from you.

No, more a case of was it unexpected?

 

[Pawel Kosinski]

No, more a case of was it unexpected?

In a sense yes, there was very little discussion on the subject - and as a company that inherently does not deal with mass import and export of the goods I never thought that those regulations would in any way affect me or my company. Say, our goods are digital - and the equipment we shift is only for us to be able to do our work. I tired to comply and get prepared as good as anyone else who is responsible for their company - but I struggle to see how anyone could review the mass of the changes that were coming into the force post brexit and say that they were 100% prepared.