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Brexit information hub for charity tax and finance professionals

To support its members and the wider sector, CTG has collated guidance and announcements relating to Brexit, to inform charities. This page is updated regularly and includes guidance, support and updates for charity tax and finance professionals.

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Latest Announcements

European Commission launches process on personal data flows to UK

The European Commission launched the process towards the adoption of two adequacy decisions for transfers of personal data to the United Kingdom, one under the General Data Protection Regulation and the other for the Law Enforcement Directive.

The publication of the draft decisions is the beginning of a process towards their adoption. This involves obtaining an opinion from the European Data Protection Board (EDPB) and the green light from a committee composed of representatives of the EU Member States. Once this procedure is completed, the Commission could proceed to adopt the two adequacy decisions.

EU Resettlement Scheme closes on 30 June

Over five million applications have now been made to the EU Settlement Scheme, according to the latest Home Office figures. The scheme requires any EU, EEA or Swiss citizen — even if they have lived in the UK for many years or have a permanent residence document — to apply for settled status (or citizenship) before 30 June 2021 if they wish to be allowed to continue to live and work in the UK.

Any charity that employs EU, EEA or Swiss citizens who have not yet applied should encourage them to do so as soon as possible. For more detailed information on applying, see Free Movement:

Commission proposes extension to EU-UK Trade Agreement

The Commission has proposed an extension, until 30 April 2021, of the provisional application of the EU-UK Trade and Cooperation Agreement. The extension is to allow the time for the completion of the legal-linguistic revision of the Agreement for its scrutiny by the European Parliament and the Council. For the extension to be approved, a joint decision must be made by the EU-UK Partnership Council.

Brexit Trade Deal agreed

The UK and the EU have agreed a Trade and Cooperation Agreement, an Agreement on Nuclear Cooperation and an Agreement on Security Procedures for Exchanging and Protecting Classified Information. The guidance states that it “changes the basis of our relationship with our European neighbours from EU law to free trade and friendly cooperation”. A helpful summary explainer of the trade deal can be read here, while the full text of all of the agreements can be read here. The deal was approved by Parliament and is now enshrined in the EU (Future Relationship) Act. Two articles under the heading “Institutional Framework” outline the role of the voluntary sector in the implementation of the deal and any further discussions. Article six says: “The parties shall consult civil society on the implementation of this agreement and any supplementing agreement, in particular through interaction with the domestic advisory groups and the civil society.” Article eight has a number of recommendations that include the organisation of a Civil Society Forum to discuss the implementation of part two of the agreement.  In addition, the forum should meet at least once a year, and include not only civil society organisations established in the UK and the EU, but also domestic advisory groups such as non-governmental organisations, business and employers’ organisations, and trade unions, the agreement states.

Guidance Document for the UK’s Equivalence Framework for Financial Services

HM Treasury has published guidance that outlines the principles and processes which govern the UK’s equivalence framework. In particular, the document highlights the UK’s commitment to an ‘outcomes-based model’ of equivalence, which operates in a transparent manner, providing predictability and stability over time to UK industry, overseas jurisdictions and firms.

DAC 6 to be replaced by OECD rules

There are to be changes to the way UK intermediaries report cross border tax arrangements post-Brexit, with the EU DAC directive set to be replaced by OECD rules later this year. If this is relevant to your charity, we suggest that you read this very helpful summary, including links to ICAEW guidance, on Accountancy Daily. 

Changes to accounting for VAT for Northern Ireland and Great Britain from 1 January 2021

HMRC has published several guidance notes that give information about when you can, or need to, account for VAT on your tax return if you’re a UK VAT-registered business.

Brexit resources

VAT after Brexit: CTG Observer Member BDO has produced a helpful series of FAQs.  

Financial Services Sector: End of Transition Period Guidance

The Government has collated guidance that brings together guidance for the end of the transition period from HM Treasury, the Financial Conduct Authority (FCA), the Bank of England, the Prudential Regulation Authority, and the Foreign, Commonwealth & Development Office (FDCO) for consumers and businesses.

Brexit checker tool: The Brexit transition period ended on 31 December 2020. The Government has updated its guidance on Brexit with a new “Brexit checker” tool. Get the complete list of what you need to do for you, your business and your family. Check what you need to do differently if you are:

Brexit transition webinars: HMRC has announced a series of webinars to help organsiations become more familiar with the new regulations and processes. The available webinars include:

Useful links

The Government has published (or updated) the following guidance to reflect changes as a result of Brexit: