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 at 11pm on 29 March, 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 latest version of the UK/EU Withdrawal Treaty was published in November 2018. The House of Commons Library has 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.

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 & CASH FLOW – There is a specific impact on the VAT treatment of goods arriving in the UK from the EU after Brexit which has cashflow implications, and which need to be considered by affected businesses and factored into their working capital planning.
  • 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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