(The slide below comes from the UK Government's 'Border Operating Model' case studies, which were released on 31 December 2020, 8 hours before the transition period ended.)
And what happens in a couple of weeks when the £23 million is gone? Do they shut up shop?
Here are 250+ examples of firms that have stopped serving the UK/NI/EU markets, or which have been forced to make major changes to their business models as a direct result of Brexit.
"Scottish seafood firms are 'days from collapse' due to Brexit border chaos - as langoustine fishing boss threatens to dump TONS of rotting stock outside Downing Street if crisis isn't resolved"
"Government will use post-Brexit shake up of workers' rights to ‘stimulate business growth’ amid claims 48 hour working week could be scrapped and holiday and legal requirements for breaks will be overhauled"
"£34bn Brexit VAT bill pushes companies to the brink"
UK companies are having to find massive amounts of cash to pay new VAT bills on their exports, as a result of Brexit. uk.finance.yahoo.com/news/brexit-va…
Why? It's COMPLICATED. This blog post explains it extremely well.
Short-n-sweet version: any firm which doesn't want to annoy their clients (probably fatally) by making them do all the paperwork & cover EU VAT will have to take on the task & cost itself. avalara.com/vatlive/en/vat…
Here's an example of the other side of the equation (the case of Ireland).
As they point out, the VAT on imports is due immediately at the point of import, unless the trader signs up for deferred payment (which buys them a few weeks grace). revenue.ie/en/vat/goods-a…