The £414m figure, which was published in a report commissioned by VAT specialists Avalara, represented around 16% of revenue loss on total EU exports. The biggest loss was recognised in the manufacturing sector, with £24.4bn of revenue lost.

The analysis found that if the EU was part of the domestic market, exporters were set to make just over £300bn in revenue, instead of the £252bn they earned.

The losses from businesses have been estimated to have affected the UK’s economic growth by preventing £8.7bn worth of investment. The report stated that UK GDP in 2026 could be 0.63% higher without the tax complexities.

The research also featured a survey of 250 business decision-makers from UK businesses that export to the EU and found that 66% of respondents were planning to expand to at least one more EU market which shows that businesses are still optimistic.