Brexit: Is your business prepared for the end of the transition period?

04/12/2020

The end of the Brexit transition period is approaching, with the UK due to leave the European Union (EU) on 31 December 2020 and begin life outside the EU from 2021.

After this, the UK will no longer be in the EU Single Market or Customs Union, and free movement will end. This will have a significant impact on businesses, particularly for those companies that employ EU citizens or trade with Europe.

However, recent research indicates that a significant number of businesses in the UK are still not prepared for post-Brexit trade, with experts now reaffirming the importance of taking action now to secure their future operations.

Understanding your circumstances

Each business is unique, and the impact of Brexit will be defined by your circumstances and trading position, whether you are an importer or exporter, or if your supply chain and customers are UK-based, or based in Europe or the rest of the world.

Understanding your clientele is vital, and working with your supply chains will help you to mitigate the impact of Brexit, while simultaneously taking advantage of new opportunities.

We’re here to help

At WMT – Chartered Accountants, we are here to help businesses like yours.

We will help to protect your business from any additional risks and costs that may be incurred as a result of the UK’s exit from the EU, while also looking to take advantage of the opportunities the new trading environment provides.

What is the current state of play?

There is still significant speculation as to the type of arrangement that the UK will enter in to, with the Government still to agree a Brexit trade deal with the EU.

The Government is believed to be focusing on a ‘Canada-Style’ agreement, which would mean that 98 per cent of products are tariff-free, while import taxes would remain on some goods such as meat, eggs and poultry.

However, the Government has also warned businesses to prepare for an ‘Australia-Style’ agreement, which would mean the UK trading on the EU’s World Trade Organisation (WTO) tariffs when exporting to the EU, with firms in the EU facing the UK’s standard WTO tariffs for exports to the UK.

As the UK is yet to secure a deal, businesses must consider the following:

• The implications for VAT
• The introduction of tariffs
• The new requirements for importing and exporting goods
• New border controls
• The needs of EU citizens in their workforce
• The impact on supply chains
• Scenario planning

You should take time to review each of these points and consider the direct and indirect impacts on your business so that you can put plans in place to mitigate any issues.

Brexit information hub

Our expert team are on hand to help you, which is why we’ve prepared a useful Brexit information hub, to keep you up-to-date with all of the latest news and developments to help your business thrive in a post-Brexit environment.

For help and advice, contact our expert team at WMT – Chartered Accountants today.