Here are the top considerations for getting your business Brexit-ready.
- Have a Brexit contingency plan
- Consider the impact on human resources
- Build in increased labour costs
- Evaluate cross-border import and export costs
- Calculate the VAT impact
- Assess potential WTO tariffs
- Plan for system updates
- Consider sector implications
- Talk to your bank
Making changes to your organisation or banking relationships may take up to 12 months. Considering the uncertainty around any transitional arrangements beyond 29 March 2019, you should look to have contingency plans in place.
If you have EEA nationals working in your UK operations or UK nationals working in your EEA operations, Brexit may impact your ability to keep these employees or recruit.
Should non-British workers leave the UK, a significant gap between the supply and demand for skilled workers may increase the cost of labour.
In order to assess the impact of border controls on your supply chain, list the countries in which your suppliers, logistical centres and/or clients are established and evaluate how often your goods are doing multiple EEA/UK transits.
Consider the VAT impact on your costs and prices for cross-border trading.
A ‘hard’ Brexit will result in the UK moving to World Trade Organisation tariffs. Assess what would be the WTO tariff for trading your goods/services with UK or EEA markets. Some examples are shown below:
Try and anticipate the need for internal systems updates to manage new customs declarations and communications with the UK and the EU systems.
Your business may be impacted to a greater or lesser degree by Brexit due to the sector in which you operate. If you are in a regulated sector, e.g. pharmaceuticals, you may need to consider regulation changes and their impact on your business.
Ensure that your bank can precisely describe their post-Brexit solution in relation to all affected products and services. e.g. Liquidity & Cash Management, Hedging & Loans, Trade Finance and Working Capital Settlement.
Rather than struggling with uncertainty, take advantage of the transition period to consider, discuss and plan for the implications of Brexit on your business.