Brexit Business Risk Analysis

Is your business ready for Brexit?

On 29 March 2017, the Government triggered Article 50, which has begun a two year process that will eventually see the UK leave the EU, following a period of negotiations with the other member states.

In preparation, the Cabinet has already begun laying out some of their plans for negotiations and have indicated that they are willing to leave the single market if they are unable to secure a suitable deal, which is likely to include changes to immigration.

This means that business now only have a very limited period to prepare themselves for the fundamental changes ahead of them.

Therefore it is extremely important that businesses plan for the challenges they may face in the next few years sooner rather than later.

Failing to plan is planning to fail. Can you afford to wait for things to happen? Or are you happy to get left behind?

Complete our questionnaire to see if your business is at risk from the effects of Brexit.

Step 1

Name:

Company name:

Email:

Telephone:

Company address:

Risk Analysis

Consider how the following will impact your business?

Income

1. Introduction of tariffs – At the moment the UK pays no tariffs to the EU as part of its single market arrangements, but new tariffs may be levied if we leave the Union.

Could your business take a sudden introduction of tariffs?
YesNo
Would the additional costs affect your cashflow?
YesNo
Have you sought advice on tariffs?
YesNo
Would it affect contracts/arrangements with European customers?
YesNo

2. Loss of passporting arrangements - Passporting into the EU from the UK will not be possible following a Brexit unless a special arrangement can be negotiated.

Is your business prepared to establish overseas subsidiaries if passporting is removed?
YesNo
Have you considered the cost of this?
YesNo

3. Changes to VAT and other indirect taxes – The UK is currently bound by the EU VAT Directive, but may be forced to pull out of this arrangement.

Is your business prepared for any potential changes to VAT?
YesNo
Have you sought advice about what these changes would mean?
YesNo
Is your business prepared/able to trade in different currencies?
YesNo

4. Security of supply chain – Brexit and subsequent tariffs are likely to affect trade between you and your suppliers.

Do you have suppliers in the EU?
YesNo
Do you have suppliers, with their own suppliers in the EU?
YesNo
Have you considered how the supply chain to the EU might be affected?
YesNo
Have you amended your supplier contracts to take into consideration the effects of Brexit?
YesNo
Have you considered how disputes would be handled with European suppliers after Brexit?
YesNo

People

1. Restriction on inward immigration – The EU and the UK has been quite clear about curtailing the Freedom of Movement arrangements.

Would this affect client relationships?
YesNo
Would this affect your supplier’s ability to import goods?
YesNo

2. Visa requirements imposed by other states – Outward travel from the UK may also be affected by Brexit.

Would it affect your ability to send staff to overseas subsidiaries on secondment?
YesNo

3. Employment legislation – The UK is currently bound by EU regulations on working hours and other employment issues.

Have you thought about the impacts of rolling back the UK’s existing employment law framework?
YesNo
Would it require you to change employment contracts?
YesNo

4. Alternative sources of staff resources and skills shortage – Many EU citizens may be required to leave the UK in the future.

Would your company experience a skills shortage if this was the case?
YesNo
Would you be able to find the same talent in the UK?
YesNo
Would this affect your current senior leadership team?
YesNo

Step 2

Preparation of a plan

During your planning for Brexit consider the following:

Relocation of trading

1. Choice of location

Have you already considered moving?
YesNo
Do you already have plans to move?
YesNo
Have you thought about overseas subsidiaries?
YesNo
Would Brexit require you to change where you are headquartered?
YesNo

2. Tax jurisdiction

Do you understand the implications of your move on your tax liabilities?
YesNo
Could a move bring beneficial tax arrangements?
YesNo

3. Suitable trading structure

Would your business require restructuring?
YesNo
Could you gain some benefit from changing your trading structure?
YesNo

4. Regulations

Could a change in regulations affect your current operation or existing contracts and agreements?
YesNo

5. Governmental grants/funding

Is Brexit likely to affect your current funding from the EU?
YesNo

6. Office costs and accommodation

Have you thoughts about the cost of relocation?
YesNo
Do you have an understanding of overseas property laws/regulations?
YesNo
Would relocation affect current rental/lease agreements?
YesNo

Business Activity

1. Changes to resources from increased/decreased trade

Have you considered the impacts of a decline in trade from EU customers?
YesNo

2. Liquidation of surplus trading entities

Could liquidating existing trading structures be beneficial after Brexit?
YesNo
Would you be looking to liquidate any existing trading entities?
YesNo

3. Recruitment/Redundancy Costs

Have you considered the costs of redundancies?
YesNo
Have you considered the potential legal requirements of redundancy?
YesNo
Have you considered the costs of recruiting new staff?
YesNo

If you have any additional questions, queries or concerns, please include them below:

 

Delivery

You should create and review a plan for the delivery of these time critical changes:

  • Finding and securing accommodation
  • Sourcing local resources
  • Relocation of key employees
  • Tax and VAT registration
  • Regulatory approval
  • Establishment of trading structures

This plan should be kept up to date on a regular basis and review as and when the situation changes. Professional advice should be sought throughout this process and we will happy to assist you with this and future reviews.

At Haslers, our expert team will stand alongside your business through these uncertain times to ensure you have the advice and support you require.

To find out more about how we can help your business, please contact our team today