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14th October 2020

EU Begins Legal Action Against UK

The EU announced they are beginning legal action against the UK for legislation Boris Johnson recently created. This new legislation overrides the Northern Ireland protocol set forth in the Brexit negotiations. The Northern Ireland protocol eliminated the border checks between Northern Ireland and Ireland, to prevent a hard border after Brexit.

The EU requested that the UK change the draft bill by the end of September, as it violates international law and directly contradicts the Northern Ireland Protocol. The only land border shared by the UK and EU is on the island of Ireland, and with a hard border there could be potential for unrest or sectarian violence.

The UK government created this new Internal Market Bill as a “safety net” for future trade in the event of a no-deal Brexit. They knew the new legislation would break international law and were anticipating consequences from the EU. The UK has one month to respond to the EU letter, or then a formal infringement process will begin. If the EU court in Luxembourg hears the case, they could impose daily fines for the breach.

Stay tuned for updates as the Brexit talks continue. There could be potential tax and payroll changes related to Brexit, but Payescape is here to help. Our cloud-based payroll technology with customised reporting ensures you stay in compliance with evolving regulations. Click here to learn more

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