31-Oct Brexit: How can SME’s prepare for no-deal?

23rd August 2019

As we edge ever closer to what looks more and more likely to be a ‘no-deal’ Brexit, SME business owners should now be readying their businesses.

 

There is clearly no certainty over quite how affected we shall all be by Brexit. However, there are sensible risk management mitigation steps that business owners may wish to consider.

 

  • If your business imports or exports goods from/to the EU, you should make sure that you already have a UK EORI number and that you have appointed a Customs agent. If you are an importer, you may also benefit from using this registration to sign up for the Transitional Simplified Procedures (TSP) scheme and Authorised Economic Operator (AEO) status.

 

  • If your business is reliant upon imported goods, consumables, etc, it must make sense to stockpile more of these than normal, to bridge any possible initial bottle-necks in your supply chain during November.

 

  • Many fear that prices will rise on imported inputs, due to tariffs and exchange rate movements. If this happens, be prepared to pass This on by adjusting your own selling prices.

 

  • If any of your suppliers invoice you in euros, it might be wise to convert a significant amount of spare sterling cash into euros, to hedge the possibility of the pound being initially devalued, as it was post referendum.

 

  • If you really are worried how Brexit could affect your business, perhaps you should consider trying to switch reliance on EU suppliers and/or customers to UK alternatives. If this is not possible, your own ‘backstop’ should perhaps be to consider ceasing to trade or selling-up.

 

Even if your business is not directly reliant upon European transactions, Brexit shockwaves could undermine the overall level of UK confidence and economic activity – so be prepared.



 
Other items in Blogs
 
Richard Alecock
12th September 2019 “Get ready for Brexit” workshops

  The Department for International Trade is hosting “Get ready for Brexit” workshops across the East region, each running from 11:30 – 13:30 followed by a networking lunch.   Please see the link below for dates and venues.   http://x.email.ukti.gov.uk/ats/msg.aspx?sg1=6a523609b267f7129747b384f8f21e3e

Read More »

Steven Denton
10th September 2019 Employer allowance – is it worth the hassle?

The £3000.00 employer allowance ceases at the end of the current tax year. From April 2020 employers will have to re-apply for a di minimis state aid based allowance.   A new HMRC checklist will have to completed to declare the following;   NIC contributions in the previous tax year were beneath £100,000; Confirmation that…

Read More »

Daryl Smith
10th September 2019 DELAYED – Domestic Reverse Charge VAT for Construction Services!

Brexit strikes again!  It appears that dreaded “B” word is not only good for grabbing headlines but also for causing H M Revenue & Customs a fair number of headaches.  Brexit has been blamed by the Revenue for everything from extended hold times on their phone lines to the delay in implementing their Making Tax…

Read More »

Jonathan Moore
5th September 2019 Gift Aid Guidance Update

HM Revenue & Customs have updated their Gift Aid for charities guidance.   In particular, the tables under sections titled The Benefit Rule, Charity Auctions and Educational School trips have been updated the latter of which will be of interest to charities involved in the running of schools and Educational Trusts.   The updated guidance…

Read More »

Karen Moore
3rd September 2019 National Payroll Week – Keeping the UK Paid

2019 marks the 21st Anniversary of National Payroll Week which is from 2 to 6 September 2019.   National Payroll Week recognises and celebrates the importance of payroll in business and the UK economy.  Not many people may know that there are 1.3 million employers in the UK and that Payroll is the largest expenditure…

Read More »

Amanda Newman
23rd August 2019 Changes in VAT for Contractors and Subcontractors

Confused by the new CIS reverse charge VAT rules that come into effect from 1 October 2019, then HMRC have issued further guidance at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services#overview.   The basics are as from 1 October 2019 if you are a VAT registered subcontractor working for a contractor you will no longer be paid for the VAT element…

Read More »