What was Brexit?
The UK formally left the EU on 31st January 2020. At that point, a transition began that ended on 31 December 2020
Key from a business perspective is that, following the end of the transition period, Great Britain is no longer a member of the EU’s single market and customs union.
These enable the EU member states to function as a single trading area with no tariffs or border checks, the little requirement for import/export documentation, and with a combined VAT system.
Great Britain now has customs borders with the EU, operating at crossing locations such as Dover and Holy head, and a separate VAT system.
Shortly before the end of the transition period, a final piece of the jigsaw was put in place when the UK and EU legislations ratified a free trade agreement.
This means that 100% of trade between the UK and EU countries receives preferential treatment – meaning there are no customs tariffs and no quota (providing “rules of origin”
What industries are affected by Brexit?
Every industry is affected by Brexit due to the potential economic impacts (reduced investment and recession) and manpower issues (migrated workforces and skilled worker shortages). Some industries will be impacted more than others such as financial services but it is those that trade internationally
that will see the greatest change. Businesses will continental European suppliers or customers will be impacted, while trade with non-EU countries will be affected by losing access to the EU’s current free trade arrangements and any customs blockages
What issues is Brexit ceasing for UK businesses?
How Brexit affects business will be different across the board. Every organization faces different challenges when it comes to the UK leaving the EU, but there are some key challenges that we all need to address.
Customs and tariffs
The future trade agreement between the UK and the EU will be essential to the economy post-transition period, therefore affecting all businesses. This is especially true for those who trade physical goods as opposed to services. It is worth considering a review of possible tariffs, ensuring paperwork is in order, and making sure business is read for VAT changes.
It is important to review your supply chain for any potential challenges which may impact the importing and exporting of goods. This may include finding alternative suppliers or intermediaries such as freight forwarders.