Home Brexit No-deal Brexit could cost businesses £20bn a year, says tax head

No-deal Brexit could cost businesses £20bn a year, says tax head

by LLB Reporter
5th Jun 18 1:27 pm

Here’s how

Just days after PM’s spokesman played down ‘no deal’ Brexit fears and said the government was ‘working towards a deal because it’s in the interests of both sides’, Britain’s most senior tax official today said that companies face an extra £20bn a year in costs to comply with the customs arrangement if there is a no-deal Brexit.

This is because businesses would have to file customs declarations in both a no-deal scenario and the so-called maximum facilitation that PM Theresa May’s inner Cabinet is analyzing, Jon Thompson, chief executive of HM Revenue & Customs, told lawmakers today.

“If we move to WTO (World Trade Organization) rules, that would definitely require customs declarations so it would be similar in terms of costs,” Thompson said when asked about the cost of a no-deal Brexit.

Prime Minister Theresa May has pledged to take Britain out of the customs union with the EU, a step she argues is necessary so that London can strike its own trade deals around the world.

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