Windsor Framework: an opportunity for the advisory role

The announcement of the Windsor Framework will present the accountancy industry with an opportunity to play a key advisory role, assisting clients with the anticipated changes to the NI Protocol, according to Gerry Myton, head of indirect tax at HW Fisher.

On Tuesday, the Prime Minister, Rishi Sunak, revealed his agreement for a post-Brexit Northern Ireland protocol with the European Commission after four months of discussions. The PM described the Windsor Framework as a “new chapter” for the relationship between Britain and the EU, while the President of the EU Commission said it was a “decisive breakthrough.”

The new deal will see changes to way Northern Ireland can trade, and the framework sets out a new set of rules and keeps NI as part of the single market for goods.

Under the new framework, the UK Government will continue to set the rules applicable to VAT in Northern Ireland, however the EU will maintain control of the collection and enforcement of VAT.

Advisory services key to adapting to new protocol

Myton says both businesses and customers will “benefit” from the changes to VAT.

“Businesses now have one set of rules to follow, and this will reduce the administrative burden, and equally customers will benefit from reduced VAT rates on certain products that now apply across the entire UK,” he adds.

Accountants’ advisory services will be key in assisting with the alterations to the NI protocol, and Myton believes this may extend beyond customs, excise, and VAT into advisory areas like state aid.

“Businesses will need guidance around the enhanced trusted trader rules [the green lane] and the revised rules for B2C parcels to ensure full compliance and accreditation,” Myton notes.

The Green Lane is a new provision in the New Windsor Agreement that facilitates the smooth flow of trade between Northern Ireland and Great Britain. This lane will allow goods to travel freely between both countries without any additional tariffs or checks.

To be eligible to use the Green Lane, goods must originate in Northern Ireland and have no more than 40% of their value derived from outside of the EU.

Myton says: “Goods will move into Northern Ireland for domestic consumption or for processing without the onerous customs checks and provision of paperwork that existed since the Withdrawal Agreement was signed.”

‘A win’ for Northern Ireland?  

The agreement appears to be a win for the UK Government, the business community, and the people of Northern Ireland, he states.

“There has been a significant movement by the EU in areas of customs, VAT, product labelling, the movement of agri/food/plant products to Northern Ireland from Great Britain, and the movement of parcels in all scenarios including B2B, B2C, and C2C,” he adds.

When asked how long it would take to consider the framework, Sammy Wilson, a senior MP for The Democratic Unionist Party (DUP), told Times Radio: “As long as it takes us to, first of all, look at the substance of the deal rather than the spin which the Government has given.”

Additionally, Wilson indicated he believed Sunak’s agreement was “not a great deal” for NI.