New legislation will protect the welfare of farm animals being transported across England and Wales, the Government has announced.

EU directives had previously prevented any changes to animal welfare rules, but now that the UK has left the single market, the UK Government is free to improve standards and regulations.

Here’s what we know about the reforms so far.

What is changing?

According to the consultation document, farm animals will benefit from improved welfare standards compared to those currently afforded under the EU regime.

This includes shorter journey times, more headroom, and “stricter rules” on being moved in extreme temperatures.

Here’s a summary of the proposals:

• Introducing shorter maximum journey times for live animals – between four and 24 hours depending on the species of animal
• Giving animals more headroom during transport
• Stricter rules on the transport of animals during extreme hot or cold temperatures
• Better training for animal transporters
• New guidance on an animal’s fitness to travel.

The Government says the new rules – which have been developed in partnership with the farming industry – come in addition to the proposed ban on live animal exports for slaughter and fattening, currently going through Parliament as part of the Animal Welfare (Kept Animals) Bill.

When will the new rules apply?

The new legislation will apply to any animal being transported within England and Wales for journeys over 65 km. This is also likely to include animals being transported abroad via England or Wales or animals exported into England and Wales from overseas.

“Opportunity to change legislation and make substantial improvements to animal welfare in transport”

Commenting on the new standards, Environment Secretary George Eustice said: “We are legislating to ban the export of live animals for slaughter and fattening, and are now developing other measures to improve the welfare of animals during transport.

“We have listened to the concerns raised relating to our proposed changes to transport regulations and have made changes to address these. We will continue to work with industry on the remaining details.”

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Business groups have called on the Government to reopen the SME Brexit Support Fund after it was revealed that just a third of the grants available had been awarded.

The £20 million initiative was launched this summer in response to Brexit to help up to 10,000 traders get to grips with new customs processes.

But it has now been revealed that just 4,376 grants totalling £6.8 million have been awarded to struggling businesses, with the scheme now closed to new applications.

Commenting on the figures, the cross-party UK Trade and Business Commission said the initial application process was too complex and the scheme should be reopened to support businesses that are facing barriers to international trade.

“It seems that the Government’s support scheme is more of an obstacle course, which discourages applications by making SMEs jump through too many hoops for a very small return,” said Hilary Benn, co-chair of the UK Trade and Business Commission.

“We have heard first hand testimony from businesses continuing to face serious hardships since leaving the EU. If the Government really wants to support them, they must hold another round of bidding with a simplified application process and more substantial grants.”

Should the scheme reopen to new applications, here’s what your business needs to know.

What is the SME Brexit Support Fund?

The grant funding scheme enables traders to access specialist training to help them adapt to new customs and tax processes, such as the rules of origin and VAT.

According to recent research, the vast majority of small businesses who trade overseas only do so with the EU, meaning many are unfamiliar with the complex international trading rules introduced at the end of the transition period.

How much financial support could I receive?

Traders who currently trade with the EU, or plan to do so in the future, were able to access up to £2,000 in grant funding via this scheme. The cash could be used to pay for specialist training and professional advice – including accountant’s fees.

Who was eligible for support?

Eligible businesses had to have been established in the UK for at least 12 months before applying, or currently hold Authorised Economic Operator status, and:

• not have previously failed to meet its tax or customs obligations
• have no more than 500 employees
• have no more than £100 million turnover; and
• import or export goods between Great Britain and the EU, or move goods between Great Britain and Northern Ireland.

The business should also:

• complete (or intend to complete) import or export declarations internally for its own goods

OR

• use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain).

It is not yet known whether the Government will reintroduce the grant, despite pressure from various organisations. Nevertheless, businesses struggling with the new trade and VAT rules should seek advice at the earliest opportunity.

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The UK and Spain are set to review how residents and companies based in Gibraltar are treated for tax purposes in a bid to tackle tax avoidance, it has been announced.

It comes after the Joint Coordinating Committee and Liaison Body met last month to discuss tax co-operation between the authorities of Spain and Gibraltar, resulting in the International Agreement on Taxation and the Protection of Financial Interests regarding Gibraltar.

If you or your company has interests in either territory, here’s what you need to know.

What will the review look at?

According to reports, the review will largely look at tax co-operation between the authorities of Spain and Gibraltar, the tax residence criteria for people and companies, and new procedures for administrative cooperation.

Who will the new rules affect?

The new rules will affect taxpayers who have interests in both jurisdictions, such as those registered in Spain but have property or work in Gibraltar, or vice versa. This could have significant tax implications for those living in Gibraltar but are determined to be a tax resident in Spain.

According to the International Agreement, conflicts may arise when persons meet any of the following criteria:

• The person spends more than 183 overnight stays in Spanish territory;
• The spouse – or partner in a similar relationship – and/or economically dependent ascendants and descendants, have their habitual residence in Spain;
• The individual’s only permanent home is in Spain; or
• At least two-thirds of the individual’s net assets are located in Spain.

In addition, Spanish nationals who transferred their residence to Gibraltar after 4 March 2019 will only be considered a tax resident in Spain.

Rules for companies

The review will also affect companies incorporated and managed in Gibraltar, where any of the following apply:

• Most of their assets are located, or most of their rights are enforceable, in Spanish territory;
• Most of their income is Spanish-sourced;
• Most of the people in charge of effective management are tax residents in Spain; or
• Residents of Spain politically or financially control the company, entity, or other legal form.

Provisions to take effect from the start of the next tax year

The provisions agreed in the international agreement will not come into effect until the next tax year. This means 1 July 2021 for Gibraltar and 1 January 2022 for Spain.

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There is less than one month remaining to claim grant funding through the SME Brexit Support Fund, businesses have been reminded.

The initiative – which helps new and established businesses adapt to post-Brexit importing and exporting processes – will close to new applications on 30 June 2021.

If you need help trading overseas, here’s what you need to know.

What is the SME Brexit Support Fund?

Launched in response to Brexit, the grant funding scheme enables traders to access specialist training to help them adapt to new customs and tax processes, such as the rules of origin and VAT.

According to recent research, the vast majority of small businesses who trade overseas only do so with the EU, meaning many are unfamiliar with the complex international trading rules introduced at the end of the transition period.

How much can I get?

Traders who currently trade with the EU, or plan to do so in the future, can access up to £2,000 in grant funding. The cash can be used to pay for specialist training and professional advice – including accountant’s fees.

Who is eligible for support?

Eligible businesses will have been established in the UK for at least 12 months before applying, or currently hold Authorised Economic Operator status, and:

• not have previously failed to meet its tax or customs obligations
• have no more than 500 employees
• have no more than £100 million turnover; and
• import or export goods between Great Britain and the EU, or move goods between Great Britain and Northern Ireland.

The business should also:

• complete (or intend to complete) import or export declarations internally for its own goods

OR

• use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain).

When is the deadline?

The final deadline for applications is 30 June 2021, but the Institute of Chartered Accountants in England and Wales (ICAEW) has urged businesses to apply as soon as possible. This is because there is a limited amount of grant funding available.

How do I apply?

For more information about the application process, please click here.

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EU workers have just one month left to apply to the EU Settlement Scheme to secure the right to live and work in the UK.

If you employ EU nationals, here’s what you need to know.

What is the EU Settlement Scheme?

European Union, European Economic Area (EEA), and Swiss citizens who lived and/or worked in the UK before the end of the transition period will be offered permanent residence, providing they meet the relevant criteria to stay.

The application process is free, but applicants must demonstrate that they are in the UK as a worker, student, or self-sufficient person. They are also required to provide a form of official ID (such as a passport or driver’s licence) and their National Insurance (NI) number, if they have one.

Workers who have lived in the UK for at least five years can apply for “settled status”, while those who have lived in the UK for less than five years can only apply for “pre-settled status”.

When is the deadline?

The scheme will close to new applications on 30 June 2021. If EU workers do not apply by that time, they may be forced to return to their country of nationality.

What do I need to do as an employer?

Employers should ensure that eligible workers are aware of the scheme and the consequences of not applying in time. You should encourage your employees to apply as soon as possible to avoid uncertainty and offer assistance where possible.

After 30 June 2021, a new digital system will be launched to help employers check proof of settled status. If you continue to employ a worker who has not received settled status, your business may be fined.

Where can I get more information?

To learn more about the EU Settlement Scheme, please click here.

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