Boris Johnson has promised the UK will leave the EU with or without a deal on 31st October – and that makes a no-deal Brexit a distinct possibility.
“I would recommend that nobody underestimates the consequences of no-deal for UK first and foremost, but for us as well.” Said European commissions officer, jean Claude Juncker.
With the departure date of the UK leaving the EU drawing closer, it is looking more likely that Boris Johnson’s plan to leave the EU with a possible no-deal would be the end result of the three year Brexit turmoil. However, that leaves the question of where this leaves the UK business sector?
Recent research from YouGov indicates that 76% of UK businesses are aware that Brexit will have a lasting impact, and 57% say they will need to adapt their business processes. However, two-thirds are yet to implement any changes.
What does a no-deal Brexit mean for my business?
Leaving the EU with a no-deal would have if not the most detrimental impact on businesses and cooperation’s here in the UK, which is why governing bodies and business cooperations are being advised to prepare for the worst.
Leaving with a no-deal means many things for the future of businesses such as a change in free trade in both goods and services as well as the free movement of employees.
The following areas of business will likely have to be examined and potentially revised once the UK leaves the EU, largely because the UK will no longer recognize institutions that oversee these areas, or will no longer be a part of the EU free trade area, which means these areas of business trading will be affected:
-Import and export of goods and services to and from EU countries, including associated VAT payments and (potentially) custom and excise duties.
-Employment of EU citizens in the UK, and UK citizens in the EU.
-Transport and logistics, including fulfillment.
-Product safety or eco-compliance, including packaging and labeling that references EU licensing.
Source: Sage advice
How should I start preparing my business for what is to come?
Although the future is uncertain, it is important to prepare for whatever results are to come. Some large cooperation’s such as Sony, are in the process of moving their headquarters from Britain to the Netherlands. Although this is a drastic move, it is vital for businesses to structure themselves in a way that ensures comfortability and steady growth regardless of the Brexit outcome.
HMRC (Her Majesty’s Revenue and Customs) has recently released instructions for businesses that trade between the UK and the EU-27 (or with the rest of the world) in preparation for a no-deal Brexit.
They’ve prepared advice for businesses that only trade with the EU and trade with the EU or the rest of the world. https://www.gov.uk/government/publications/letters-on-no-deal-brexit-advice-for-businesses-trading-with-the-eu-andor-the-rest-of-the-world
most experts are advising businesses to keep close contact with their supply chains to figure out what they are doing in order to ensure continuous service.
With everything up in the air, businesses need to put their best foot forward and remain strong during this crucial political turbulence as it is a period that can make or break a company.
For more information on how to better prepare for a no-deal Brexit visit, the gov.uk site, and ICAW business advice page.