The UK’s exit from the EU will definitely have an economic impact that all business owners should prepare for. Here is the list of the key areas to change and recommendations for business owners.
In the case of no-deal Brexit, the UK will totally separate from the EU. In that case, trade between countries will be regulated on the basis of international principles. Businesses will experience the greatest impact with continental European suppliers or customers. Trade with non-EU countries will also be affected by losing access to the EU’s current free trade arrangements. Logistics will slow down as border controls will take place.
Tariffs, or customs duties, will definitely change. Currently, the UK is still trading with the rest of the world according to EU tariff rates. But after the Brexit tariffs will depend either on trade agreements with each separate country or on the World Trade Organisation (WTO) rules.
Note, that any import or export business must register for an Economic Operator Registration and Identification (EORI) number (the unique ID code used to track and register customs information in the EU). Businesses will not be able to move goods in and out of the UK without one.
It’s still unknown if the UK manages to reach a free trade deal with the EU. We will keep you updated on the progress.
If you run business in the UK, and you hire employees from the European Union European Economic Area (EEA) and Switzerland, certain measures should be taken.
Each EU citizen wishing to remain in the UK after the 30th of June 2021 must apply for Settled Status. The application can be done prior to the 30th of December 2020. Learn more about the process and prepare the required documents and photos.
Each business owner should inform EU workers of the latest developments and of their ability to remain in the UK after Brexit!
UK service providers are currently exporting their services to the EU under the rules of the common market. In the case of no-deal scenario, the relevant regulatory framework will be the rules of the World Trade Organization (WTO). Note, that the right to provide services in the EU market will not extend automatically, but details are still unveiled.
What can I do for my business in the UK at the moment?
Don’t worry: the Government has already taken measures to help business owners prepare for different scenarios.
First: contact one of the 31 Local Enterprise Offices (LEOs) across the country. You will receive individual guidance and useful Government support to help you get your business Brexit ready.
Second: read the Brexit Preparedness Checklist produced by the Republic of Ireland government. It describes the steps you can take now to get ready for Brexit.