Key dates for the implementation of the Windsor Framework
On 27 February the UK and EU agreed the Windsor Framework (Framework) and these arrangements were adopted by the Withdrawal Agreement Joint Committee on 24 March.
The implementation of the Framework will be introduced in phases up to and including 2025 to provide businesses with time to adapt to the new arrangements, with some arrangements already in force.
We have set out a time line summarising these arrangements:
Domestic installation of energy saving materials - May 2023
The Framework introduced a temporary VAT zero-rating in Northern Ireland for the domestic installation of solar panels, insulation, heat pumps and other energy saving materials with effect from 1 May 2023.
Second-hand cars into Northern Ireland from Great Britain - May 2023
A new second-hand motor vehicle payment scheme was introduced on 1 May 2023 which allows UK VAT registered and established businesses to claim a VAT-related payment on their VAT Return where they buy and take possession of an eligible second-hand motor vehicle in Great Britain and move that vehicle to Northern Ireland with the intention to resell it in Northern Ireland or in the EU.
Duty reimbursement scheme - June 2023
The Tariff Reimbursement Scheme, which is due to be launched on 30 June 2023, allows businesses that paid EU duty on “at risk” goods/”red lane” goods but can evidence these goods did not move into the EU, to seek a reimbursement of this duty. Claims can be backdated to 1 January 2021 and made in bulk across different declarations by accessing a new form which will be made available on gov.uk. Claims for overpaid duty should be submitted by 30 June 2026.
The reimbursement scheme will continue to operate for future movements where goods are moved into NI and declared “at risk”/”red lane”. Claims for goods brought into Northern Ireland after 30 June 2023, should be submitted within three years of being notified of the duty owed.
UK Internal Market Scheme - September 2023
The existing UK Trader Scheme (UKTS) will be replaced by the new UK Internal Market Scheme (UKIMS) with effect from 30 September 2023. This will enable businesses established in Great Britain to join and declare goods “not at risk” if they are brought into Northern Ireland for sale or final use by end consumers in the UK.
UKIMS authorisation will, with effect from 30 September 2024, provide access to the “green lane” for goods moving from Great Britain into Northern Ireland. Goods moving through the “green lane” will:
- not be subject the same processes that apply to other goods entering Northern Ireland;
- businesses will be able to submit a simplified dataset, based on commercial information.
The annual turnover threshold for businesses which process goods in Northern Ireland will increase to £2m.
Moving goods from Great Britain to Northern Ireland - sanitary and phytosanitary products - October 2023
The Temporary Agrifood Movements to Northern Ireland (STAMNI) will be replaced in October 2023 by a new scheme, the Retail Movement Scheme.
Businesses moving goods under the scheme will be able to benefit from the new “green lane” arrangements provided for in the Framework and goods will move on the basis of a single General Certificate for eligible consignments, supported by a packing list. There will be no need for an official vet to approve the documentation and instead, goods will move on the basis of a trader declaration under the authority of the UK competent authority.
Movements of goods which do not qualify under STAMNI will move through the “red lane”.
Customs Duty Waiver Scheme – January 2024
The Customs Duty Waiver Scheme will be expanded from January 2024, increasing the maximum value of duties able to be waived over the course of three tax years for “at risk” goods moved into Northern Ireland from £170,000 to £235,000.
Parcels - September 2024
With effect from 30 September 2024, there will be new arrangements in place for the movement of parcels with further information to be announced following dialogue with parcel operators to develop these arrangements:
- Consumer to consumer - the relevant parcel carriers will provide data on the movement to HMRC for parcels sent by or to a consumer.
- Business-to-consumer parcel movements – businesses in Great Britain sending goods to consumers will not need to provide or generate any commodity codes. The parcel carriers will provide data to HMRC based on commercial information under a new “authorised carrier” scheme.
- Business-to-business movements – these movements will follow the same “green and red” lane process in place for freight. In order to use the “green lane”, businesses sending or receiving goods will need to be UKIMS authorised and meet the criteria for moving goods.
Supply of goods – medicines - January 2025
In 2025, medicines available in Northern Ireland will be those approved by the UK’s Medicines and Healthcare products Regulatory Agency (MHRA), enabling a single licence and a single pack for medicines throughout the United Kingdom.
In the meantime, all existing grace periods and arrangements will remain in place until the new arrangements come into force.
The Indirect Tax team is able to assist businesses understand the implications of these arrangements and advise on their impact, what they should do to prepare and their implementation.