As we get closer to March 2019 and the completion of Brexit, it may not feel like it…..but things are slowly becoming clearer.
We are going to be communicating more regularly with clients about the key issues as we see them and share our thoughts along the way. We have assembled a ‘Brexit Team’ and over the coming weeks and months we will be responding to the latest news and views, sharing opinions, information and helping our clients get Brexit ready!
Leading the way will be my myself (Stuart Rogers) as Head of PKF Francis Clark’s International Tax Services Group and Liam Dushynsky who is an Indirect Tax Director specialising in Customs Duty. We will also be joined by experts in other relevant fields and sectors as matters dictate.
Last week saw the Confederation of British Industry (CBI) host their annual conference at the O2 Arena and this was understandably dominated by the issue of Brexit and the outcome of their latest survey.
According to the CBI, 11% of the firms surveyed have taken no action whatsoever in relation to Brexit, whilst approximately only 14% have taken any advice in relation to Brexit or recruited extra staff to assist in managing the process. This means that an awful lot of businesses have not yet taken positive action to deal with the changes that are coming.
Paul Drechsler, the Head of the CBI, claimed that 10% of businesses are already engaged in plans to move staff and operations overseas – if we get to March 2018 and there is still no deal, the CBI say that another 50% will be enacting similar contingency plans as concerns and uncertainty grow. But of bigger importance, his message was that SMEs in the UK are struggling to know what to do and how to respond to a ‘no deal Brexit’ – and that is why a transitional deal with the EU is so important in their eyes (read more).
Likewise, the Chartered Institute of Procurement and Supply (CIPS) has undertaken Brexit related research in the form of a survey. 63% of EU companies surveyed confirmed that they were considering changing suppliers from the UK to elsewhere in the EU. At the same time, 40% of British companies are looking to replace EU suppliers with British suppliers. It would therefore seem that without any clarity, businesses are beginning to take action (read more).
With SMEs struggling to know what to do next, it seems a good time to remind everyone that you can download our very useful Brexit Planner below.
Our next communication is going to open up the world of customs duty and the issue of Authorised Economic Operator status. In the interim, if you have a burning Brexit question, please email either myself or Liam, or your usual PKF Francis Clark contact.