Businesses are advised to prepare for all eventualities including a no-deal Brexit. It’s crucial for organisations to act now to be in a resilient position – to adapt quickly and thrive. Here’s a checklist for businesses to assess where they stand in their Brexit preparations.
The UK’s IT sector is worth £185 Billion, employing about 1.2 Million people, directly and indirectly. Latest research reveals top IT executives expressing concerns that companies in the UK are in danger of losing software development work post Brexit. Brexit might have various ramifications on UK’s Information Technology sector. Some of the possible impacts are examined below.
Mr. Johnson might be forced to write to the EU at the EU summit on 19 October 2019, after the EU leaders meet for final European Council summit and ask for an extra three months. Unless he returns with a deal – then gets it approved by MPs – or gets the Commons to back a no-deal Brexit. As of now, there are multiple scenarios in the fray, each representing a different version of Brexit.
The discussions around Brexit have mostly revolved around the movement of goods across borders, somewhat undermining the discussions on its impact on the services industry. Over the years, multiple services industries have flourished in the country and made a positive impact to the economic output. Facilities Management (FM) is one such industry.
Most of the Brexit discussions so far have veered heavily towards its impact on physical goods and their movement across borders. However, the focus on border controls and achieving frictionless trade in goods has inadvertently shunned a large chunk of companies operating in the services sector – a sector that generated £31 Billion in trade surplus for the country in 2018.
The UK joined the EU in 1973. Known as the European Economic Community back then, EU envisaged a political and economic union that allowed free trade and free movement of people to live and work in country of their choice. If Brexit goes through on the dotted line – 31 October, UK would be the first member state amongst the 28 European countries to withdraw from the union.
In the event that the UK leaves the EU without finalising a deal, businesses importing and exporting goods with the EU will have to comply with a new set of rules and regulations. Her Majesty’s Revenue and Customs (HMRC) department is assisting businesses in understanding these new rules and the course of action that should be adopted to take to ensure compliance and continuity in case of no-deal exit.
Brexit will bring forth changes for businesses of every size and sector. It will have an impact on multiple elements that are essential for the wellbeing of a business such as workforce, intellectual property, data protection, taxation etc. How well prepared is your business to deal with Brexit? Have you had a thoughtful conversation about what could change for your organization?
As part of the European Union (EU), Britain was a beneficiary to about 40 free trade deals which covered more than 70 countries spread globally. It essentially meant that the UK could trade with countries such as Canada without paying taxes (tariffs) for importing most goods. In case the country decides to leave the EU, without striking a deal first with the bloc, it stands to suddenly lose its tax-free access to these markets.
Businesses should tread with caution where personal data is concerned. Data protection and data flow are not exactly top priorities for businesses or citizens when considering the impact of Brexit. However, the implications should not be taken lightly given that collecting and processing personal data is integral to the sustenance of many businesses.