Brexit: A New Horizon
With Brexit scheduled for 29 March 2019, UK businesses face the daunting task of scrutinising supply chains and preparing for customs…and the clock is ticking.
While we do not yet know what kind of Brexit we will have, the sheer range of tasks businesses will need to undertake ahead of the departure date is worthy of attention.
Businesses should have already begun the process of strategic review to minimise their risks and maximise the opportunities Brexit presents for them.
What happens next?
The negotiation process is not straightforward. Article 50 was triggered on 29 March 2017. This meant that negotiations for the UK to leave the EU could begin and would need to be finalised by 28 March 2019. The EU’s chief negotiator, Michel Barnier, has indicated that the transitional period for the UK leaving the EU customs union will likely reach its end on 31 December 2020.
When the UK leaves the customs union, goods moving into or out of the UK will be subject to customs checks, customs declarations and duty rates negotiated with EU or non-EU countries. In the absence of specific trade agreements with the UK’s trading partners, the default position would be for the World Trade Organisation (WTO) to apply its own tariffs.
UK businesses who have not prepared for the possible absence of trade agreements with the EU could be faced with unanticipated costs, and supply chain dilemmas which may create vulnerabilities for their business within the post-Brexit landscape.
Maximise your opportunities with our Brexit Business Planning Guide
Written by our tax experts, this guide will help you work through the issues and steer you towards the long term strategic opportunities in a post-Brexit business world.