With two weeks to go until the 31st January BREXIT deadline, we thought now would be a good time to recap on what BREXIT will look like after the UK leaves the EU:
What will happen on 31st January 2020?
- The UK will leave the EU on 31st January 2020 with the deal that was negotiatied by Boris Johnson’s government prior to the election.
- With Boris Johnson winning a majority in the house of commons in December 2019, the government swiftly passed the Withdrawal Bill paving the way for BREXIT to take place on 31st January.
What happens after the 31st January 2020?
- On 31st January, Great Britain will leave the EU with the deal Boris Johnson negotiated. However, fret not as nothing is set to change until the next deadline on 31st December 2020. This period between the 31st January 2020 and the 31st December 2020 will be known as the “Transition Period”. This is the period where the new arrangements (including a new trade deal) between the UK and the EU are negotiated.
What happens if the new arrangements are not finalised or agreed between the UK and the EU by 31st December?
- In this scenario, the UK will leave the EU with No-Deal in place and trade will revert to WTO (World Trade Organisation) rules. Therefore our advice is that you should still plan for a no-deal BREXIT post December 31st. Our guide for BREXIT readiness can be found here.
Can the UK request an extension to the transition period?
- Yes but this has to be completed and agreed by 1st July 2020 (source) .
- However, the Tory manifesto ruled out an extension to the transition period but recently the rhetoric from No.10 has changed indicating that they may leave the door open for an extension.
- The extension requested can be up to 2 years so there is potential for the transition period to be extended to 31st December 2022. During this time, the customs rules under which we all operate will not change, but preparations for a no-deal will still be taking place.
To summarise, our advice is that you should still prepare for a no-deal BREXIT on 31st December 2020. If you havent done so already please visit our guide to BREXIT readiness here
Are you ready for BREXIT? Click here to read our guide on BREXIT readiness.