As of last week, the UK is no longer part of the European Union: however, despite months of headlines, multiple forecasts, and mounting uncertainty, it feels for many that it was a blink-and-you-miss-it moment. Leading finance firm, Salhan Accountants, is warning businesses that this may well be the calm before the storm, and failure to prepare now for changes later may well be preparation to fail.
Pointing out that the country is unlikely to feel the effects of Brexit until the transition period ends on 31 December 2020, Director of Salhan Accountants, Dr Anjulika Salhan, has indicated that we won’t fully have a grasp of how business will change until then.
Commenting on what she contemplates the key considerations to be, Anjulika said:
“There are two main areas for companies to consider when it comes to Brexit: people and products. Businesses that already employ staff from the European Union or trade with EU countries will need to be hyper-vigilant, of course, but I can’t urge start-ups and scale-ups enough to educate themselves and get prepared. While you might not feel that it’s necessary now, the impact of Brexit on employment laws and the supply chain for the next few years and beyond may well see the need for businesses to reassess their cash-flow forecasts.”
From 1 January 2021, Anjulika predicts that the primary changes that will be most notable are likely to be: employment acts, particularly those related to payroll; tax legislations, which are tied up in European law; and customs processes for importing and exporting goods once we are outside of the EU’s customs territory.
Whilst the final terms are likely to become concrete as time goes on, there are a few provisions that Salhan Accountants recommend implementing as soon as possible to avoid delays. For example, having your Economic Operator Registration and Identifications – otherwise known as EORI – number. Starting with the letters GB, this code will allow you to submit customs declarations to move good between the UK and the EU after the implementation period ends.
“If you already have an EORI number beginning with GB, keep it safe! If not, we can help you to register. If you’ve only ever traded with the EU – or if you already trade with non-EU countries but need to expand or change your processes to cover your GB-EU imports and exports, you should start to prepare now to make customs declarations. There are options to use third parties such as customs agents too, but knowing what the process entails will ensure you’re able to make informed choices about what is best for your business.
“Here at Salhan Accountants, our expert team are on hand and fully briefed to understand the new laws; most importantly though, we have our finger on the pulse of the changes when they happen, so we can give you the most up-to-date advice as and when you need it. Don’t leave these changes to chance, and certainly don’t rest on your laurels now that Brexit has ‘happened’; in the world of finance, it has really only just begun,” concluded Anjulika.
To enquire further about the potential impact of Brexit on your business, seek advice, or to find out more about how Salhan Accountants might be able to help you, head to salhanaccountants.co.uk.