On 23rd June 2016, the UK voted to leave the EU. Since the results of the referendum were published there has been turmoil in the financial markets and general uncertainty in a lot of businesses.
A lot of questions have been raised by businesses:
How will Brexit affect my business?
Will Brexit affect trading with our European customers?
What will happen to the UK economy in the event of Brexit?
If the UK does leave the EU, the current preferential access that UK businesses enjoy with the single market may no longer be available. Tariffs could be imposed which will inevitably raise prices and ultimately affect sales.
Even before the referendum, there were signs of the UK economy shrinking and the UK entering another recession. The referendum result has affected a lot of businesses growth prospects and resulted in a slump of corporate confidence. The UK pound is at an all time low against the dollar and if you are transacting internationally this will have the obvious affect on your trade and business. However, the Bank of England is in the process of taking measures that should prevent too much of a hit to the UK economy.
Now that the UK has a new Prime Minister and Cabinet, some stability has been restored to the political outlook of the UK. Teresa May’s mantra ‘Brexit means Brexit’ would indicate that we are certainly heading for Brexit. However, as we all know with politics, a lot of things that we hear should be taken with a pinch of salt.
Article 50 of the Lisbon Treaty – which states that any member state may decide to withdraw from the Union in accordance with its own constitutional requirements – has not yet been triggered and until it is and as the in/out results were so close, there will remain some ambiguity over whether it will ever be triggered and whether the UK will actually leave the EU.
What is clear is that the referendum has caused uncertainty; leaving the EU will be a complex and long process that could take several years. The eventual exit model that the UK adopts could have an impact on your business. However, until we know what this is, everything we hear is speculation.
The best thing to do in the interim is to sit tight, continue business as usual, do some scenario planning to cover an eventual Brexit and put some plans in place that will keep your business in good stead and prepared in the event of Brexit actually happening.
If you are uncertain of what Brexit will mean to your business please give us a call on 01902 42 2020 and we’ll try our best to answer any questions that you throw our way. We’ve had a lot of discussions with our business partners and will ensure that your business stays buoyant regardless of whether the UK leaves the EU or not.
Alternatively, you may complete the contact form on our website by clicking here: I’m a business looking for an accountant.
You can also email us: firstname.lastname@example.org.
Appleby Mall, Chartered Accountants, here to ensure your business achieves the success that it truly deserves in the event of Britain leaving the EU.