The effect of Brexit on businesses in the UK

The effect of Brexit on businesses in the UK
The UK left the European Union (EU) on January 31st 2020. A trade deal called the Trade and
Cooperation Agreement (TCA) was settled in December 2020, helping to determine the future trading relationship between the UK and the EU. Businesses need to be aware of the trade and
cooperation agreement which has only recently been announced.
The effect of Brexit on businesses is huge. Businesses need to adapt to changes in legislations which affect areas such as VAT and customs.
It is very important to ensure your business is trading correctly. Each business requires expert knowledge for their situation.
For example, if your business trades with the EU, there will be changes to UK-EU trade at the UK border including on customs, tariffs and VAT. You will need to ensure that you are prepared for this now.
If you sell manufactured goods, there may be new rules that you are going to need to comply with.
With regards to personal data, if you transfer personal data into the UK there may be changes to how you send or receive personal data from outside of the UK.
Also, if you hold intellectual property your business may be affected relating to copyright, patents,designs and trademarks.
To gain a better understanding of these changes and the way your business needs to adapt, the government website provides a checklist tool for businesses to help them to prepare. This can be found here – https://www.gov.uk/transition

Due to these changes, there is likely to be an impact to the business supply chains. There may be disruption relating to the flow of goods and services and it may continue to be a problem for over a year. It may be harder to fulfil customer orders. This is likely to be a concern for up to a year after
Brexit whilst businesses undergo a transformation to adapt to the new rules. This will involve changing how they currently operate. If you do import goods, it would be valuable to keep good relationships with EU suppliers and to be clear in your trading practices.
Some business models and ‘ways of working,’ which may have been profitable before Brexit, may no longer be profitable after Brexit and so businesses may need to make changes to ensure that they
remain profitable. This may involve reviewing your supply chain and your supplier relationships.
According to data published by the guardian, they mentioned that Brexit could cause a 6.7% loss in GDP growth in the next 15 years. If you don’t trade outside the UK, this is still going to be an
economic shock that will likely affect us all living in the UK.
Some businesses are looking at expanding their business and gaining customers outside of the UK and the EU. Some businesses are looking to gain customers in the emerging markets, who would not have normally considered this.
McKinsey did a report highlighting growth in the emerging markets, so there’s plenty of opportunity for UK businesses to grow overseas. Businesses just need to ensure there is a potential market for your business services or goods there.
Some UK businesses are looking at outsourcing some of their work and operations outside of the EU because of Brexit. On the topic of outsourcing work, it’s worth noting that under the new Brexit immigration laws, both EU and non-EU migrants will be subject to a point-based system for visa eligibility. This new immigration system could result in affects to the workforce, however, there are many opportunities such as apprenticeship schemes and grant schemes for businesses in the UK to
help them to gain and keep local talent.