What you need to know about the end of the Northern Ireland grace period
It was today revealed that the European Commission is unlikely to accept the Government’s proposition of a two-year extension to the Northern Ireland grace period.
With reports suggesting that the Union will consider a three-to-six-month extension at best, what does this mean for businesses transporting goods into Northern Ireland?
What is the Northern Ireland grace period?
Announced hours before the end of the Brexit transition period, the Northern Ireland grace period exempts businesses transporting certain goods – such as meat and dairy products – into Northern Ireland from customs processes until 01 April 2021.
When will the grace period end?
The grace period is unlikely to be extended for a further two years. Reports suggest that the grace period will be extended by three months, putting the end date in July, to a maximum of six months, moving the end date to October.
What will happen at the end of the grace period?
Whether it is July, October, or somewhere in between, the end of the grace period will bring the Northern Ireland protocol into force.
The protocol was originally imposed to prevent controlled goods from moving into the European Union via Northern Ireland without following the correct customs processes.
This means certain goods coming into Northern Ireland ports will become subject to strict EU customs rules, despite the Brexit deal allowing for tariff-free trade.
The processes and new requirements include:
- Firms sending products of animal origin – such as meat, fish, eggs and dairy – to Northern Ireland will be legally required to complete Export Health Certificates (EHC) to ensure they meet EU standards. A vet or similar professional must sign off every consignment.
-Some meat products, like sausages, have a six-month grace period before customs processes come into force.
-Some meat products, like sausages, have a six-month grace period before customs processes come into force.
- Firms will need to complete customs declarations for commercial parcels entering Northern Ireland.
- Personal parcels carrying goods valued at £135 or less do not need to be declared, but parcels containing excise goods, such as alcohol, do.
- More information on all of the new customs processes can be found here.
Get expert help today
To discover how these changes will affect your business, please get in touch with our expert Brexit advisory team today.
The revised version of FRS 102 accounting standards has already brought new reforms for accounting periods starting on or after 1 January 2026 and now the rules are changing again. The Financial Reporting Council (FRC) has announced further amendments to FRS 102 and FRS 105, affecting how certain businesses present their financial statements. With the changes taking effect over the next two years, now is the time to understand what is coming and how it could affect you. Why are the FRS 102 rules changing again? The updates follow the introduction of IFRS 18, which replaces IAS 1 on the presentation of financial statements. To ensure they are aligned with international accounting standards, the FRC has introduced amendments to UK GAAP. However, after consultation, it stopped short of adopting the full IFRS 18 model. What are the new FRS 102 changes? The latest amendments apply to entities using updated Companies Act formats. They include: · Revised presentation requirements for businesses applying adapted balance sheet and profit and loss formats · Moving presentation requirements into new appendices within Sections 4 and 5 · Updated definitions of current assets, non-current assets and current liabilities, plus additional application guidance These changes are taking effect for accounting periods beginning on or after 1 January 2027. Alongside this, earlier reforms came into force from 1 January 2026 and changed revenue recognition and lease accounting. Revenue must now follow a five-step control-based model and businesses must reassess customer contracts. Most leases must also now be recognised on the balance sheet as a right-of-use asset with a corresponding lease liability. Instead of a single lease expense, businesses will record depreciation and interest separately. How can you prepare? To prepare for the current FRS 102 changes, you should now be reviewing contracts and lease liabilities and ensuring you have the correct presentation formats. If you are unsure how the new FRS 102 rules will affect your business, now is the time to seek professional advice. For further support, contact our team today.
With just a few weeks before Making Tax Digital (MTD) for Income Tax comes into effect on 6 April, the countdown is on. HMRC has been sending letters to thousands of sole traders, landlords and self-employed individuals, warning them their reporting obligations are about to change. Whether you have received your letter or not, you should act now to ensure you are compliant. What is MTD for Income Tax? MTD for Income Tax is HMRC’s move towards a fully digital tax system. If you are affected, you will need to: · Keep digital records of your income and expenses · Use HMRC-compatible software · Submit quarterly updates to HMRC · Complete an end-of-year declaration Quarterly updates will not replace your annual Self-Assessment, but it does mean that you will interact with HMRC more regularly throughout the year. Who will be affected? MTD for Income Tax is being rolled out in stages based on your gross income: · April 2026 – gross income over £50,000 · April 2027 – gross income over £30,000 · April 2028 – gross income over £20,000 Those who fall into the first phase of MTD for Income Tax in April must submit their first quarterly update by 7 August 2026. You must also keep your digital records accurate from the start of the tax year and file your Self-Assessment return by 31 January 2027. How can you prepare for MTD for Income Tax? The time to act is now. You need to move away from paper records and understand your new obligations. You will then need to choose an MTD-compatible software or use a suitable bridging solution that works for your finances. It is necessary to sign up for MTD for Income Tax, as HMRC will not automatically do this for you. You can then begin digital record-keeping. HMRC is taking a soft launch approach to MTD for Income Tax and is waiving penalties for the first year, but you must still remain compliant. Our team can advise you on your reporting requirements, help you implement the right software solution and handle quarterly submissions on your behalf. For further advice or support, get in touch today.
Do you have to declare savings interest to HMRC? Learn how the Personal Savings Allowance works, when you pay tax and when to file a tax return.