2021 Year in Review: Food, Drink and Hospitality Sector

As we look back over the food, drink and hospitality sector in 2021 what are the key words that have shaped the year? Covid, Brexit, human capital challenges, sustainability and organisational agility all immediately come to mind.

Organisational Agility Blog Series

In a disruptive and rapidly changing world, never before has organisational agility been so important.

The reality of Brexit

Even with COVID19 overshadowing everything during 2020, Brexit did not exactly creep up on exporters on 1 January 2021.  However, with the EU-UK Trade and Cooperation Agreement only being finalised on Christmas Eve, UK businesses had very little time to prepare for the reality of Brexit.  It is little wonder, therefore, that we have had all of the headlines in the first few months of 2021 around delays at the ports, rotting food on lorries and empty shelves in stores.  Even the UK’s beloved “Percy Pig” was threatened by EU “red tape”! 

Brexit changes for UK residents with EU properties

Following our previous blog on the personal tax impact of Brexit, it seems those who own property in France or Spain may be particularly affected by Brexit.

The Seafood Sector and Brexit - Q&A

Following on from issues the seafood sector has faced as a result of Brexit, Alistair Duncan hosted a Q&A session on LinkedIn to answer the most frequently asked questions since New Year. Below is a round up of the questions and detailed responses in case you missed it.
 
Since the Q&A was hosted, the Scottish Government has announced new financial assistance, totalling £6.45 million, to the Seafood Producers Resilience Fund. The Scottish Government estimates the fund will benefit roughly 1,000 vessels and a further 75 aquaculture businesses.
 
If your business owns both vessels and aquaculture undertakings you will have to complete two applications (combined payments will be capped at £45,600). Eligibility, payment rates and other details are different for the two kinds of business, and total payments under the scheme are capped at £45,600 for the catching sector and £40,500 for the aquaculture sector.
 
All applications concerning fishing vessels must be in before 26 February, therefore it is important to assess the criteria and complete your application carefully. If you have any questions at all, please do not hesitate to contact Alistair Duncan.
 
All available information regarding the scheme can be found on the government website: Seafood Producers Resilience Fund - gov.scot (www.gov.scot)

Withholding Tax - implications following Brexit

For any companies who previously relied on an EU directive in relation to Withholding Tax (“WHT”), there will be a need to consider the impact between the UK and other EU entities. The terms of the relevant Double Tax Treaty (“DTT”) should be reviewed to determine if there is any reduction, or possibly even elimination, of the withholding tax obligation. There may also be a requirement to make a new or amended claim to the relevant tax authority too.

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