Jon Thompson On What Will Happen If Theresa May Doesn't Hurry Up

Forex News

Britain's most senior tax official, a permanent secretary at Her Majesty's Revenue and Customs, Jon Thompson stated that if EU and UK won’t agree on the trade deal, UK firms will face an extra 27 billion dollars (20 billion pounds) each year in costs to comply with the customs arrangement, a so-called "max fac" (maximum facilitation).

Thompson claims: "If we move to WTO (World Trade Organization) rules, that would definitely require customs declarations so it would be similar in terms of costs".

Theresa May and her cabinet promised to present the plan for leaving the custom union and the European Commission has to approve it. But, it is a very difficult task. Right now, the government is looking at 2 options in a debate that has created some wide diversion between May’s party. Some members would prefer a clean break with the EU and some would like a closer cooperation with Brussels.