Customs charges due to Brexit could cost the offshore industry £145 million this summer and £120 million every year thereafter, north-east firms have been warned.
The bombshell has been delivered to the oil and gas industry in letters sent out by Her Majesty’s Revenue and Customs (HMRC).
Until now, the industry has been able to take widgets offshore without paying tax, and Financial Secretary to the Treasury Mel Stride had given assurances this would remain the case after Brexit.
Now HMRC has warned new charges will be brought in from mid-July.
An Oil and Gas UK spokeswoman confirmed the initial cost was expected to be £145 million, followed by £120 million every year from 2019.