Brexit: Practical SME preparations.

26th September 2017

 

As we approach the end of the first quarter in the run-up to Brexit D-day, we are now beginning to see what practical steps SME businesses are taking in preparation:

  • Businesses with a significant production source or market presence within the rest of the EU are strengthening their presence there. Creating a subsidiary based in Southern Ireland keeps your options open and seems to be the preferred solution.
  • Perhaps the biggest fear from Brexit is that it will create a confidence shockwave, that will depress UK economic activity generally. As always with a downturn, businesses should consider how they could trim excess costs from their overheads and which discretionary spends can now be turned off.
  • Business borrowing and commercial leases are often backed up by personal guarantees and security given over assets owned outside of the business. Where your relative strength has improved, consideration should be given to negotiating the removal of this exposed security.
  • The Government positive spin on Brexit is that it will enable us to sell into non EU export markets with lower tariffs. If such tariffs have been a barrier to you selling in the past, prepare to reconsider.
  • Since the day before the Brexit referendum, Sterling has devalued 13%. This author is not clever enough to predict or gain from future rate movements. But sensible pricing arrangements and purchase of forward currency contracts can hedge against the downside risk.

Blog entry by: Ian Piper



 
Other items in Blogs
 
Jodie Pheby
22nd July 2021 Accounts Basis Period Reform – Consultation

Under current rules, businesses draw up annual accounts to the same date each year. The profit/loss for the tax year is usually the profit/loss for the year to the accounting date – called the basis period.  Tax is paid on profits earned in the basis period ending in the tax year in question.   However,…

Read More »

Nick Edgley
15th July 2021 31st July: Can your tax payment be reduced?

Many taxpayers who are required to file a self-assessment tax return to HM Revenue & Customs should now be preparing for their next tax payment which is due by 31 July. The amount payable is the second payment-on-account for the 2020/21 tax year and is automatically calculated as half of the total tax liability for…

Read More »

Ian Piper
6th July 2021 30-Sep-21: End of most COVID support measures for SME’s

When COVID directly impacted upon the UK in Spring 2020, the Government introduced a range of measures specifically targeted to help businesses survive the expected period of financial strain. Such businesses, that are still here, should now be planning ahead for when this support is gradually unwound: 21-Jun-21 Deadline for arranging with HMRC when to…

Read More »

Megan Turner
5th July 2021 Charity annual returns

The charity annual return service is now available for 2021 and can be found on the link below. https://apps.charitycommission.gov.uk/   Charities need to submit their annual return within 10 months of the financial year end.   Dependant on the level of income, the annual return has different requirements; Income under £10,000 It is only the…

Read More »

Bethan Hassey
1st July 2021 Changes to the reduced rate of VAT for hospitality, holiday accommodation and attractions

  In July 2020 the government announced that VAT registered business who operate in the hospitality and tourism industry could use a temporary 5% reduced rate of VAT on certain supplies compared to the standard 20%. The objective of this legislation was to support businesses in this sector during the Coronavirus pandemic and assist with…

Read More »

Thomas Nicholls
15th June 2021 Tax on Cryptocurrency does not have to be cryptic

Within the last 10 years the cryptocurrency scene has exploded from the first decentralised cryptocurrency, Bitcoin, being created back in 2009 to now more than 4,000 different cryptocurrencies being in existence with a total market cap value of over £1trillion.   This has led to the creation of the Cryptoassets Taskforce which was announced back…

Read More »