Statement from IRIS Software Group on Brexit

The decision by the United Kingdom to leave the European Union, known as Brexit, has presented changes for businesses across both the UK and the wider EU.

In light of the recent negotiated deal which came into effect on the 1st January 2020, IRIS Software Group (IRIS) has assessed the potential impact for its customers and employees and has summarised below.

Impact on IRIS customers

The UK’s withdrawal from the EU has not had any material impact on customers as IRIS derives minimal revenue from the sale of goods or services which are imported from the EU.

IRIS has not identified risks in its supply chain or for any EU sales. The sales which do occur are in respect of software only and do not involve the movement of goods.

We have appointed IT Governance Europe Limited to act as our EU representative. If you are based in the EU and wish to exercise your rights under the EU General Data Protection Regulation (EU GDPR), or have any queries in relation to your rights or general privacy matters, please email our representative at eurep@itgovernance.eu. Please include reference to “IRIS Capital Ltd” in any correspondence you send to our representative. Alternatively, you may contact us directly at dataprotection@iris.co.uk.

The data processing agreement with IRIS is available upon request and includes the necessary clauses to safeguard data transfers outside of the EU.

Impact on IRIS products

IRIS has already made the appropriate changes to products for the following:

IRIS Company Secretarial & IRIS Company Formations: Prior to Brexit, Company House formsdifferentiated between EEA and non-EEA Corporate Officers. This differentiation is no longer needed as it becomes UK and non-UK Corporate Officers.

KashFlow: Postponed VAT accounting was introduced on 1st January 2021 for all imports of goods. If you are UK VAT-registered you will now automatically account (as required) for the import VAT on such goods in your VAT returns as both a supply (Box 1) and a purchase (Box 4). These entries cancel each other out. The collection of its VAT revenue on such goods by HMRC is thus postponed to the quarter in which the imported good is finally sold upon the UK market. IRIS made this rule live in the KashFlow release on 29th December 2020.

Please also note that Northern Ireland, remains within the European single market. Though its trade with the UK and with the rest of the world continues to follow the usual UK VAT rules, its trade with the EU continues to follow the procedures in place for all the UK before the start of this year. Given this requirement, only UK VAT-registered entities resident in Northern Ireland will still need to use Boxes 2, 8 and 9 on the VAT Returns.

Impact on IRIS employees

IRIS does not anticipate Brexit to impact its workforce, other than a potential skills shortage in particular areas. However, offshoring options exist outside of the EU.