How will Brexit affect my business?

The UK’s decision to leave the European Union (EU), known as “Brexit”, has implications for businesses, individuals, the economy and the tax system. The UK should leave the EU on 31 October 2019, at which moment all EU treaties cease to apply to the UK.

Negotiations for leaving and the UK’s future relationship with the EU are being overseen by the Department for Exiting the European Union. The UK/EU Withdrawal Treaty was published in November 2018. The House of Commons Library published a series of links to related documents. In December 2018 the government published an overview of the legal position on the Withdrawal Treaty and launched an online portal to help businesses prepare for Brexit. However, following the failure of the UK Parliaments to endorse the Withdrawal Agreement the exit date has been delayed to 31 October 2019. 

During 2019 the government has been planning for a potential EU exit without a deal or a transitional period including a new schedule of tariffs which will apply to goods arriving from the EU and the rest of the world in the event of a no deal Brexit. There are also simplified customs procedures which may apply in these circumstances.

The key issues that make Brexit a very important and an immediate issue for businesses include:

  • ACCOUNTING – The potential change in reporting EU transactions means updating accounting systems. This can take time, and any business currently configuring a new accounting system will need to make sure it is capable of dealing with reporting and accounting changes.
  • INTERNATIONAL TRADE – The imposition of customs duties on movements of goods to and from the EU will affect agreed prices and costs of goods, so it is important for businesses which have contracts spanning key Brexit dates to consider the potential impact of these duties and who will bear the additional costs.
  • VAT  –  Once the UK leaves the EU VAT area there are a number of VAT issues to consider especially for UK businesses which buy and sell goods to or from EU based customers and suppliers, and for EU businesses trading in goods with the UK.
  • WORKERS – The rights of EU nationals working in the UK and UK nationals working in the EU have yet to be fully agreed, and may impact on the workforce. (Settled status for EU citizens)

 

If these issues resonate with you please contact a member of our team to find out how we can help you. 

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