Whether you voted ‘Remain’ or ‘Leave’ you and your business now have to deal with any changes in the way we do business in the UK. But what effect will Brexit mean for our businesses?
The first thing we discovered was that it takes time to remove our nation from the EU. So we shouldn’t expect any instant changes and we need to hope that our Government will deliver on its promises.
Also, a lot of legislation needs to be re-written; much of which will affect many UK businesses. This could take up to 10 years. Currently the EU dictates legislation for many things that affect most UK businesses, such as employment laws, international trade, VAT and Data Protection.
The outlook could be a bit turbulent thanks to a large number of unknowns. If your business exports internationally, you may be a little nervous post-Brexit, while being outside of the EU will by no means make it impossible to trade internationally, there may be some delays ahead. Similarly, if your business manufactures in the EU you will have reason to be concerned thanks to import tariffs and mark-ups – the big questions being, can the UK’s manufacturing industry bounce back and support the economy?
In terms of finance, as finance is often granted by local retail banks, we would expect to see some effects – with the overall legislations changes and the expected economic and financial repercussions affecting banks. If EU banks find it more difficult to support British businesses due to legislation restrictions, we may see competition for finance increase. One expected boost to SME businesses in the UK is likely to be halted as a result of the Brexit result, the European Investment Bank had planned to lend £100m to our small businesses.
SMEs throughout the UK seemed to be split between Remain and Leave with different types of business expecting to be affected by the decision in different ways, click here to read a few quotes from SMEs on their Brexit decisions.
The outlook for small businesses depends on whether Theresa May goes for membership of the Single Market or a “Hard Brexit” which is trading under WTO rules. Whatever the outcome, UK SMEs will have to buckle up and ride out the storm before feeling the benefit. Those that take advice ‘before the storm’ will have an easier ride and will be better placed to take advantage of new opportunities.
We are stepping into a phase of uncertainty, but the important points to take from this blog are that changes will not be immediate, there will be turbulence, but there will be benefits on the horizon. If you have concerns about Brexit, whether you are a Contractor, Freelancer or an SME, contact us to discuss your business’ financial and strategic position.
Askews Accountants and Askews Solicitors can advise you on various commercial and legal issues surrounding the changes that are likely to result from Brexit. The implications of any decision need to be carefully considered. So why not contact us to discuss your situation and to better understand which options are best for you.
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