Brexit is not far away and with many businesses fighting the effects of the current Covid-19 pandemic it is important to still be mindful and pay attention to what you need to do in order to get your business ready for Brexit. Below are five steps to prepare for when the time comes.
1. Tax and tariffs
From January 1, 2021, an Economic Operators Registration and Identification (EORI) number is required to move goods into or out of the EU. All goods which are imported to the UK will also be subject to UK global tariffs from 2021. As a business owner, you will need to check what these will be if you are not sure then a member of our team can help. If the UK leaves the EU without a deal, there will be new tariffs on certain goods and services that are exported from the UK to the EU.
2. Supply chains
When it comes to supply chains as a start-up you must audit them in order to check which goods or services are procured from the EU. Familiarise yourself with all your contracts, do they have certain clauses which might get activated, and will they work in your favour? Get in touch with all of your suppliers as well as service providers about their plans for Brexit. Are they stockpiling to cover any delays at the borders?
Any of your employees who are UK-based and are citizens of the EU, the European Economic Area (EEA) or Switzerland, must register for settled status to continue living and working in the UK six months after the end of the transition period on June 31 2021. There will be a new points-based system in place for those employees who are sponsored which will come into effect from January 1, 2021. If you haven’t done so already you should be checking to make sure that all your staff are legally allowed to live and work once the deadline has passed.
Understanding the financial implications of Brexit may be difficult for some business owners to understand especially those who have recently started out. Additional stockpiling and storage costs to cover potential delays at the borders as the UK gets to grips with life after Brexit, new tariffs, price increases and currency fluctuations could all make a big dent in start-up finances. If you are unsure about anything to do with your finances, then one of our professional business consultants will be able to help.
5. Data protection
One aspect of Brexit that you need to be prepared for is the regulation of data. This is going to be important for any businesses who hold client data, such as personal information. From January 1, 2021, the EU is most likely to treat data transfer to and from the UK in the same way that it does other non-EU countries. These restrictions subject to GDPR compliance from the EU will adhere to adequacy decisions by the EU.