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You can find the current article at its original source at http://www.theguardian.com/politics/2018/oct/04/watchdog-commons-hmrc-delay-advising-small-firms-brexit-no-deal-hillier
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| Version 2 | Version 3 |
|---|---|
| Watchdog criticises HMRC delay in advising small firms on Brexit | Watchdog criticises HMRC delay in advising small firms on Brexit |
| (about 1 month later) | |
| Tax officials have been severely criticised by parliament’s spending watchdog for failing to prepare thousands of businesses for continued trade with Europe in the event of a no-deal Brexit. | Tax officials have been severely criticised by parliament’s spending watchdog for failing to prepare thousands of businesses for continued trade with Europe in the event of a no-deal Brexit. |
| Meg Hillier, chair of the public accounts committee, wrote to Jon Thompson, permanent secretary at Her Majesty’s Revenue and Customs, saying she was concerned and disappointed that firms had not been contacted about how to prepare for the possibility of the UK crashing out of the EU. | Meg Hillier, chair of the public accounts committee, wrote to Jon Thompson, permanent secretary at Her Majesty’s Revenue and Customs, saying she was concerned and disappointed that firms had not been contacted about how to prepare for the possibility of the UK crashing out of the EU. |
| Tax officials have not yet identified 100,000 small traders who would be affected by a new customs regime after the UK leaves the EU, said Hillier, who is the Labour and Co-op MP for Hackney South and Shoreditch. | Tax officials have not yet identified 100,000 small traders who would be affected by a new customs regime after the UK leaves the EU, said Hillier, who is the Labour and Co-op MP for Hackney South and Shoreditch. |
| The development follows Thompson’s appearance before the committee in September, which examined the readiness of the customs declaration service, the new digital system that will monitor goods entering and leaving the UK after Brexit. Following delays the CDS is now supposed to be ready for use in January, just weeks before the UK is due to leave the EU on 29 March. | The development follows Thompson’s appearance before the committee in September, which examined the readiness of the customs declaration service, the new digital system that will monitor goods entering and leaving the UK after Brexit. Following delays the CDS is now supposed to be ready for use in January, just weeks before the UK is due to leave the EU on 29 March. |
| The number of traders and suppliers declaring customs to HMRC at the border is expected to almost double, from 150,000 to 295,000, while the number of declarations could rise from 55m to 255m after Brexit, though this would depend on the outcome of negotiations. | The number of traders and suppliers declaring customs to HMRC at the border is expected to almost double, from 150,000 to 295,000, while the number of declarations could rise from 55m to 255m after Brexit, though this would depend on the outcome of negotiations. |
| The letter from Hillier, released on Thursday, questioned why revenue and customs officials had not told businesses how they might prepare for a possible no-deal Brexit. | The letter from Hillier, released on Thursday, questioned why revenue and customs officials had not told businesses how they might prepare for a possible no-deal Brexit. |
| “I am both concerned and disappointed that nearly two months on you have made little progress. You gave us no assurance that HMRC has a plan to ensure that businesses are aware of what they will need to do. We are particularly concerned about the 100,000 small traders that HMRC can not engage directly with, as you do not know who they are.” | “I am both concerned and disappointed that nearly two months on you have made little progress. You gave us no assurance that HMRC has a plan to ensure that businesses are aware of what they will need to do. We are particularly concerned about the 100,000 small traders that HMRC can not engage directly with, as you do not know who they are.” |
| Hillier also expressed concern that Thompson had said the CDS system would be subjected to further delays, and that would mean it would have to run alongside the old system, called CHIEF, further increasing costs. HMRC’s timeline has slipped, with delays putting pressure on the department to be ready by March 2019. | Hillier also expressed concern that Thompson had said the CDS system would be subjected to further delays, and that would mean it would have to run alongside the old system, called CHIEF, further increasing costs. HMRC’s timeline has slipped, with delays putting pressure on the department to be ready by March 2019. |
| “We are disappointed that despite your previous and repeated assurances about the progress of the CDS there has yet again been a slip in the timing just weeks after we last took evidence on the subject,” Hillier wrote. | “We are disappointed that despite your previous and repeated assurances about the progress of the CDS there has yet again been a slip in the timing just weeks after we last took evidence on the subject,” Hillier wrote. |
| Plans to implement the new declarations service have been the subject of much examination in Whitehall; MPs and civil servants are concerned that its failure to be ready on time could lead to long delays at ports and airports in the days after Brexit. | Plans to implement the new declarations service have been the subject of much examination in Whitehall; MPs and civil servants are concerned that its failure to be ready on time could lead to long delays at ports and airports in the days after Brexit. |
| Amyas Morse, head of the National Audit Office, warned that it would be a “horror show” if officials were forced to manually process imports and exports. | Amyas Morse, head of the National Audit Office, warned that it would be a “horror show” if officials were forced to manually process imports and exports. |
| A HMRC spokesperson said plans to ensure that there will be a functioning customs, VAT and excise system if the event of a no-deal Brexit are “well-developed”. | A HMRC spokesperson said plans to ensure that there will be a functioning customs, VAT and excise system if the event of a no-deal Brexit are “well-developed”. |
| “We have always said the timeline for implementing the CDS is tight, but that we would operate the current system [CHIEF] in tandem throughout the transition. | “We have always said the timeline for implementing the CDS is tight, but that we would operate the current system [CHIEF] in tandem throughout the transition. |
| “We have made good progress to ensure that the UK has a customs system capable of handling any potential volume of customs declarations after March 2019.” | “We have made good progress to ensure that the UK has a customs system capable of handling any potential volume of customs declarations after March 2019.” |
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