Now we’ve entered the month of September, it is time to start seriously thinking about the UK’s exit from the European Union. Brexit’s terms are expected to be announced on the 31st of October, which could cause several changes that will affect UK citizens, especially businesses which will experience a significant impact post-Brexit. While some companies already have preparations in place, others are not as proactive. To ensure your business is protected for the official exit, you should take a look at these top tips which will you prepare and succeed.
Many UK businesses with multiple locations in the EU are considering closing or moving them back to the United Kingdom in order to prevent any losses. This is because negotiations with the European Union are unstable and therefore businesses feel as though branches overseas should be brought back home for the time being. While this may cause them to lose part of their customer base, it is a safer option and it can also help the UK’s economy – which may suffer if a no-deal Brexit happens.
A great example of this is property companies and investors, who have shifted their focus from the rest of the world back to the UK, which may be facing a price decline but still has the potential to succeed. This includes property investment experts RW Invest who have a number of ongoing developments in the north-west of England, which has shown no signs of slowing down with high rental yields and low-cost properties. After Brexit, there have been predictions of market improvement, which is pushing investors to buy now and benefit later.
Assess additional costs
Right now, UK companies have it easy with low import and export rates for products going in and out of the European Union. However, this is set to change with the arrival of Brexit. Any business that sends items to and from any European countries will face import and export taxes, which can add up and dramatically increase your outgoings.
To ensure you’re prepared for these additional costs, you should assess all your bills and predicted ingoing’s, which will help you determine if you can afford them or not. You can achieve this easily with an auditing tool or even the Brexit calculator which helps you work it all out. If paying extra will harm your business, you may want to consider swapping suppliers, preferably UK-based. This will offer you high-quality but affordable products that enable your business to flourish.
Check employee status’
According to the government’s checklist for businesses and Brexit, one of the most important things you need to consider is your workforce, which may be at risk if any of your employees have not achieved settled status by 31st of December 2023. To avoid losing workers, you should ensure all your non-UK staff applies to the EU settlement scheme, as this will allow them to become a permanent UK resident.
You may also lose workers if taxes go up, as current employees working in the UK are only required to pay national insurance contributions in one country. However, if a no-deal Brexit occurs, your staff may also have to pay the same taxes in their own country. This may be too much, resulting in them leaving and going back to their origin country, which could have a significant impact on your production levels. To avoid losing any key workers, you should reassure them while also offering them job security and potential for a pay rise or certain perks.