UK Transition // Industry sector advice
Services & investments
Check and change – 5 steps services and investment companies can take to be ready to go after the transition period
The UK has left the EU, and the transition period will end on 31 December 2020. From January 2021, there will be important changes for businesses.
Here are five things service and investment companies can check and change now to be ready to go. For more actions your business may need to take before January 2021 visit www.gov.uk/transition and use the checker tool.
Signpost your current employees to the EU Settlement Scheme
If you employ EU, EEA and Swiss citizens, you can signpost them to the information they need to apply to the EU Settlement Scheme, enabling them to secure their future in the UK. The deadline for applying is 30 June 2021. Find out more here.
Get your qualifications recognised now by EU regulators to be able to practise or service clients in the EU.
If you have a UK professional qualification you will need to have this officially recognised by the appropriate regulator for your profession in each country where you intend to work. You will need to do this even if you are only providing short-term or occasional professional services. If you do not do this, you may be unable to continue to practice or service clients in the EU from 1 January 2020. There are different rules if you are a lawyer or an auditor.
For more information, visit here.
Check if a visa or work permit is required to travel to the EU for work purposes and apply if necessary.
If you travel to the EU for work purposes from 1 January 2021, you may need a visa or work permit. The country you are travelling to might also ask you to have other additional documents depending on the activity you perform. This advice may be relevant to anyone travelling to the EU for work purposes: this could include anyone working in the private, public or third sector, for example, professional and business services, manufacturing, charities, or the arts. For more information, visit: https://www.gov.uk/visit-europe-1-january-2021.
Comply with the new immigration policies for recruiting from overseas
From 1 January 2021, the UK will introduce a points-based immigration system. EU and non-EU citizens will be treated equally and will need to meet certain requirements to come to the UK to work. If you want to recruit workers from outside the UK from 1 January 2021, you will need to be a licensed sponsor. Registering as a sponsor normally takes eight weeks and fees apply. To find out more about the new system, including how to register as a sponsor, visit: https://pbisemployers.campaign.gov.uk/
If UK-adopted international accounting standards are not determined as equivalent to EU-adopted international accounting standards, UK businesses listed on EU markets may need to produce accounts that comply with EU-adopted international accounting standards (or an equivalent) and UK-adopted international accounting standards.
Companies preparing IFRS accounts will need to use ‘UK adopted IFRS’ instead of ‘EU adopted IFRS’ for financial years beginning after the 1 January 2021. UK incorporated groups with securities admitted to trading on a UK regulated market will need to prepare accounts using UK adopted IFRS for all accounting periods beginning on or after 1 January 2021. UK incorporated companies listed on other EU markets will need to comply with the rules of those markets as well as preparing accounts that comply with the UK Companies Act 2006.
UK incorporated parent companies with a subsidiary in the EEA and UK companies with a presence in the EEA (for example a branch) need to check the reporting requirements in the country where the subsidiary, or branch, is based.
UK incorporated groups that issue debt from a subsidiary incorporated in the EU will need to comply with the rules of the country where the subsidiary is based as well as produce accounts that comply with the UK Companies Act 2006.
More information is available here.
UK companies listed in the EEA need to secure an auditor who is registered as a third country auditor in the relevant EEA states to comply with local audit requirements.
More information is available here.
Speak with your lawyer and accountant or visit www.gov.uk/transition for tailored business information and to sign up for email updates.
Also in this section: