Changes to VAT obligations and the EU settlement scheme
On 1 July 2021, several important changes came into force.
- The EU implemented changes to the VAT obligations for businesses selling directly to customers (B2C). There are two major reforms: the end of Low Value Consignment Relief (LCVR) and introduction of the Import One-Stop-Shop (IOSS), and the launch of the One-Stop-Shop (OSS). Read more about how this may affect your business.
- The EU settlement scheme ended on 30 June 2021 however applicants may still be able to apply in certain cases. Individuals who want to work in the UK after 1 January 2021 may need to apply for a visa. Read more about right to work checks.
The UK left the EU single market, customs union and VAT area on 31 December, and from 1 January 2021 the provisions of the UK-EU Trade and Co-operation Agreement (TCA) now apply to trade between the UK and the EU. New rules now apply in areas including trade in goods and services, immigration, and travel.
Under the terms of the Northern Ireland Protocol, Northern Ireland will continue to follow EU single market rules for goods and agriculture, and will continue to apply rules of the EU’s Union Customs Code, this will mean some changes to trade between Great Britain and Northern Ireland.
We will continue to update our Transition Hub to provide information and guidance on the new trading arrangements to help small businesses adapt. We will also continue to signpost you to other practical information to keep you informed and up to date.
What action can I take now?
Check the new rules for doing business with the EU and the actions you can take now with our guides below.
Our policy experts answer the top questions small businesses are asking.
Find out what's changed if you provide services to the EU and what action you may need to take.
The rules around data transfers between the UK and EU will change in 2021. Find out what this means for your business.
Get your Imports and Exports in order
If you are a UK based business who imports from, or exports to, the EU new procedures and additional paperwork is now required. Find out more using the options below.
FSB member and MD of Global Freight Anton Gunter answers our questions on what may change for small businesses after 31 December 2020
Our guide to what they are, whether you need to complete them and where to find more support.
Find step by step guides to importing and exporting goods between the EU and the UK
Living and working in the UK after the transition period
Employing from outside the UK? Learn the steps you need to take to ensure your applicants have the right to work in the UK under new immigration rules, including updated guidance on transitional measures, frontier permits and how to access specialist immigration support.
The Frontier Worker Permit Scheme
The Home Office has launched the new frontier worker permit scheme. This means frontier workers working in the UK on or before 31 December 2020 can now apply for a frontier worker permit.
If you’re employing from outside the UK, learn the steps you need to take to ensure your applicants have the right to work in the UK under new immigration rules, including updated guidance on transitional measures.
From 1 July 2021, a new frontier worker permit is required by those who work in the UK but live abroad. Find out who might need a permit and how to apply with our guide.
FSB members can access free resources and discounted legal support through their FSB membership.
What happens to data security after 31 December 2020 and what can you do to prepare?
From green cards to the impact on general insurance, find out what action you can take now to prepare your business’ insurance.
From keeping your supply chain moving to collecting payments in different currencies with ease, FSB Funding Platform explains how export finance can grow your business.
How can FSB membership help?
Take control of your debt with the tools and support you need to get paid. Download free guides, customise template letters and get advice 24/7 from debt recovery specialists.
FSB members can access free resources and legal support at special discounted rates through market leading immigration specialists to provide all the support you need to retain your existing workforce and to recruit the right people with right skills to grow your business.
From employer’s liability insurance to insuring your exports, our experts at FSB Insurance Service ensure you’ve got the right cover for your business as well as being on hand to answer your questions via their insurance advice line.