A key tenet of the UKs relationship with the EU is free movement of labour and as a result Brexit could lead to changes in your workforce and the skills available to you.
As well as the free movement of labour, another principle of EU membership is free-trade, the UK’s departure from the EU could mean that tariffs will change on goods that move between the borders.
As a worst case scenario, you should consider the potential impact of a situation where there are tariffs between the UK and the EU – based on the EU Most Favoured Nation (MFN) tariff (which applies to countries that do not have a special agreement with the EU).
Taxation will also likely change as a result of the UK’s departure from the EU.
In the event of no deal, the UK will introduce postponed accounting – the same system that is currently in place for intra-EU trade. This means that there will be no need to pay VAT at the border; the only change caused by Brexit on VAT will be on parcels valued up to and including £135.
Across a number of sectors and regulatory areas, the UK Government has expressed its intention to maintain status quo arrangements for obtaining licences to trade with the EU, and for domestic compliance and enforcement.
In the event that a Brexit withdrawal deal is agreed, it remains unclear whether UK regulators would be able to provide licences for the EU market after the transition period; it is also unclear if notified bodies in the UK will be able to conduct conformity assessment checks destined for the EU market.
In the event of a ‘no deal Brexit’, firms may need to comply with new licence requirements and changes to their competent regulatory authority.
Business groups across the country are announcing that many companies are ill-prepared for a deal or no-deal Brexit. Edwin Morgan, interim director-general of the Institute of Directors, said recently that businesses across the economy were “seriously underprepared” for no deal, with smaller businesses especially facing “unknown unknowns”.
Our guide was created to help you understand the effect that Brexit may have on your business. Not knowing the implications for your business could result in disaster.
If you would like to get in touch to have a more in depth discussion about Brexit planning please get in touch using the form or calling us on +44 (0)330 380 30 30.