Brexit is coming:
Time to up your game
@MarketFinance
Nikki Gandhi, Partnerships Manager, MarketFinance Nikki’s hands-on approach means she’s our accountants go-to for all things funding. With over a decade of experience at major UK banks in retail and commercial banking, Nikki is best placed to understand the needs of both you and your clients.
After tackling the challenges brought about by COVID-19, the next course to be navigated by businesses in the UK is Brexit. And they need you, their trusted advisor, to help them.
I
t’s been a long journey along this Brexit road since the people of the United Kingdom voted to leave the European Union on 23 June 2016. Now, almost four and a half years later, the UK is on the cusp of leaving the single market and customs union. Even after all this time, we don’t have clarity on what to expect as we’re still in this deal/no-deal limbo. And there are only two months to go. It’s difficult to take steps forward when you don’t know what you’re walking towards. Small and medium-sized businesses must be feeling the weight of this more than most. In a recent survey we undertook of 2000 businesses, 32% of respondents said that they don’t see any risk of a no-deal Brexit. Regardless of whether they’re aware of any risks, deal or no-deal, things are going to change for the UK’s traders. It’s easy for businesses to thrive amid certainty. But while certainty is not always possible, being prepared for different outcomes can be the next best thing. We know 110 / Issue 25
that certain aspects of business are going to be affected by leaving the EU – we just don’t know exactly in what way yet. But with this knowledge and your knowledge of your clients, you – the accountant – are already equipped to give your clients some valuable advice. The workforce will be affected According to our survey, 27% of respondents were mainly concerned about workforce availability as a risk for their business. With statistics showing that, for example, a quarter of all staff employed by the construction industry are non-UK nationals, perhaps there should be more concern shown for the potential ramifications on the workforce. Lord Agnew, a minister working on the preparations for Brexit, said in a recent interview that he fears traders will be unprepared come 1 January. The government can surely admit that, without clarity on any plans, they’re not giving businesses much to go on! In just two months, the free movement of people between the
UK and the EU will be a thing of the past. EU nationals working in the UK will at the very least be faced with reams of paperwork to complete so they can continue living here. Businesses that rely on migrant labour coming from the EU seasonally may find that this source of labour dries up. We had a glimpse of the impact of a lack of labour on the summer harvest this year as labourers were not able to move freely from Europe due to COVID-19. Business travel won’t be as easy as it was before Another part of life that we’ve taken for granted is travel to the EU. It’s been easy to jump on a train and head over to France with no real planning or paperwork needed. And while you’re on the continent, it’s been easy to hop over to another EU member state without a second thought. However, from the new year, visas will be needed for all countries in the EU and each country may have its own requirements when it comes to fees, processes and paperwork. And there’ll be no spontaneous trips
XU Magazine - the independent magazine for Xero users, by Xero users.
