Brexit Experts

Navigate the uncertainity with our Brexit Specialists.

Make sure you're up to date and compliant with the latest rules.

With so much uncertainty surrounding Brexit, what form it will take, and the repercussions it will have on the British economy and British businesses it would be hard to state that anyone is an expert on Brexit yet.

However, our legal team and accountants are going to be among to first to understand the ramifications of any and all situations that develop surrounding Brexit and are in the best situation to help you insulate your business from negative effects.

To see what they can do for you and your business and support you at this uncertain time, feel free to contact us.

Alternatively, look at the advice below that should help all businesses that are importing or exported goods from the EU.

Brexit Advice For Businesses

Brexit Advice for Businesses

With our relationship with the EU changing, see our must see ten step guide for all businesses that trade in the UK and EU.

Brexit Advice For Accountants

Brexit Advice for Accountants

We know that changes are coming to our relationship with the EU, for ideas on how you can support your clients, see our Brexit guide.

BREXIT ADVICE
FOR BUSINESSES

Brexit Checklist


A ten point checklist for businesses that trade with the EU

BREXIT ADVICE
FOR ACCOUNTANTS

What affect will Brexit have on accountants?


Many businesses are asking at this time what affect Brexit will have on them, the accountancy sector is no different.

Recently the Government lost the vote on the deal it proposed for Brexit.

This has led to further uncertainty and speculation about what the future may hold, and in what form Brexit will take, and therefore the affect it has on us and our clients.

That is where we will chiefly feel the affects of Brexit, through the effects it has upon our clients.

Some businesses may relocate, and in fact, some are making contingencies to do so.

Increased customs checks with EU trading partners may affect supply chains, changes to freedom of movement could lead to skill shortages, changes could occur to contracts through the amendment of laws.

A large concern is that Brexit will have a large detrimental impact on economic activity, which in turn could lead to our clients being less financially stable - which naturally would mean that there would be pressure on accountants to lower their fees.

However, uncertainty could also be beneficial to the accountancy sector.

When things are uncertain, and rules and regulations changing, clients need more support and advice alongside extra support with forecasting, planning and the management of working capital.

As accountants, we will be among the first to understand the ramifications of the changes bought by Brexit, and understand the changes in regulation and taxation, the easiest way to offset these risks for our clients is to help and support them through these uncertain times.

In the event of a deal


If there is a deal with the EU then the business sector will be much more confident, at least to begin with.

The business sector craves stability and certainty, in the event of a deal the status quo would be maintained until at least the end of 2020, which will allow all businesses time to adjust and plan.

However, changes will still come into effect after the transition period.

In the event of a deal British qualifications are likely to still be recognised across Europe.

Currently, the system is that qualifications are checked by the country in which they are to be used, and if satisfactory can be used across the whole of Europe.

Under the Draft Withdrawal Agreement and Outline of the Political Declaration, the qualifications equivalence would only be for the country that you have made an application.

So, if you were to take a job with a company in Germany that also operated in France, you may need to apply for recognition of your qualifications in both countries.

Applications for recognition of qualifications in European Union member states can currently until 31 December 2020, which is the end of the transition period.

However, there is also a further 9 months after this for applications to be determined, which will cease on August 31 2021.

Whilst going through the transition period, the United Kingdom are going to remain within the customs union.

As a result, no changes to customs and VAT will take place during this time.

However it is certain that after this gradual changes to both will occur.

In the event of no deal


In the event of no deal, there will be almost certainly be further uncertainty and upheaval in the short term.

Refusal by parliament to back any deal put before it will mean that we will go to a no-deal scenario.

What does this mean?

  • It would mean customs checks on imports and exports from and to the European Union.
  • Further uncertainty for the business sector.
  • Changes for reporting and auditing.
  • A lapse in air traffic control agreements will mean that flights to the European Union, or internationally, could be affected.
  • You should to follow Government contingency advice.

Business and Clients


The Bank of England have stated that in either a deal or no deal scenario economic activity in the UK will be depressed compared to previous levels.

This will mean more challenging trading conditions for individual companies.

Conversely, accountants have a tendency to do well in more challenging times.

The uncertainty ahead is an opportunity for accountants to step up and use their advisory skills to assist and support their clients.

AAT members should be advising their employers and clients to test their resilience in the event that sales dip, or supply chains operating more slowly, or if debtor days actually increase.

What will happen to customs?


At some point in the future, tariffs and customs declarations are certainly going to apply on all imports and exports to and from the European Union.

In the event that parliament has a change of heart and decides to now back Theresa May's deal, this will not occur for 2 years until the end of the transition period.

However, if no deal is ratified by parliament in time, this will occur at exactly 11pm 29 March 2019.

Will there be changes in VAT?


In the event that the United Kingdom leaves the European Union without a deal, business in the UK will have to apply VAT, customs and excise procedures to goods that are imported or exported to the European Union in much the same way that they currently apply VAT, customs and excise to goods that are traded with countries that are outside of the European Union.

Understandably, as a result of this there will be implications on cash-flow.

As a result the Government has stated that in the event of a no deal Brexit it would introduce postponed accounting, which would apply to import VAT on products imported to the United Kingdom.

This will mean that instead of having to pay import VAT on goods as soon as, or soon after they arrive at the border, UK VAT registered businesses can pay the VAT later on their annual tax return.

The UK Government has stated that this will apply to both goods that are imported from the European Union and countries that are outside of the European Union.

In the event that there is a deal with the European Union, the most likely scenario would see that VAT stays and continues after the transition period.

There may have to be changes in the law in the UK to provide legal standing for this.

Categories and rates of VAT may also be subject to change over time.

However, one would expect the government to attempt to minimise any potential upheaval to trade.

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