Brexit: Practical SME preparations.

26th September 2017

 

As we approach the end of the first quarter in the run-up to Brexit D-day, we are now beginning to see what practical steps SME businesses are taking in preparation:

  • Businesses with a significant production source or market presence within the rest of the EU are strengthening their presence there. Creating a subsidiary based in Southern Ireland keeps your options open and seems to be the preferred solution.
  • Perhaps the biggest fear from Brexit is that it will create a confidence shockwave, that will depress UK economic activity generally. As always with a downturn, businesses should consider how they could trim excess costs from their overheads and which discretionary spends can now be turned off.
  • Business borrowing and commercial leases are often backed up by personal guarantees and security given over assets owned outside of the business. Where your relative strength has improved, consideration should be given to negotiating the removal of this exposed security.
  • The Government positive spin on Brexit is that it will enable us to sell into non EU export markets with lower tariffs. If such tariffs have been a barrier to you selling in the past, prepare to reconsider.
  • Since the day before the Brexit referendum, Sterling has devalued 13%. This author is not clever enough to predict or gain from future rate movements. But sensible pricing arrangements and purchase of forward currency contracts can hedge against the downside risk.

Blog entry by: Ian Piper



 
Other items in Blogs
 
Ruth Pearson
17th October 2019 Is it too early to talk about Christmas!

In December 2018 HMRC wrote to employers to advise of a temporary easement on reporting PAYE information in real time. This was for a number of reasons, one of which could be due to businesses closing over the Christmas period and therefore having to pay staff earlier than normal.   HMRC have received feedback from…

Read More »

Chris Kelly
8th October 2019 Whiting & Partners advises Lettings Agency on finding its new Home

Whiting & Partners, The Corporate Finance Network’s representative firm in Suffolk has advised a well-established lettings agent on its sale to a national group.   The Whiting & Partners Corporate Finance team were approached by their client when they decided to explore opportunities to sell their agency. The team, led by Corporate Finance Partner, Chris…

Read More »

Matilda Mawson
2nd October 2019 Class 2 National Insurance – HMRC’s ongoing issues

July 2015 saw the end of direct debit collection for Class 2 National Insurance. Contributions are now collected through self-assessment and, despite there being 4 years since the change in the way payments are made, HMRC are still having teething problems. The issues arise as HMRC are running two computer systems side by side: national…

Read More »

Ian Piper
1st October 2019 New Off-Payroll Working Tax Rules: Y/N?

Readers, particularly knowledge based contractors working through their own personal service companies, will hopefully now be familiar with the new ‘off-payroll working’ tax rules being introduced in the private sector on 1 April 2020. These are being introduced as part of the Government’s general strategy over recent years to eliminate tax avoidance, tax evasion, and…

Read More »

Richard Alecock
12th September 2019 “Get ready for Brexit” workshops

  The Department for International Trade is hosting “Get ready for Brexit” workshops across the East region, each running from 11:30 – 13:30 followed by a networking lunch.   Please see the link below for dates and venues.   http://x.email.ukti.gov.uk/ats/msg.aspx?sg1=6a523609b267f7129747b384f8f21e3e

Read More »

Steven Denton
10th September 2019 Employer allowance – is it worth the hassle?

The £3000.00 employer allowance ceases at the end of the current tax year. From April 2020 employers will have to re-apply for a di minimis state aid based allowance.   A new HMRC checklist will have to completed to declare the following;   NIC contributions in the previous tax year were beneath £100,000; Confirmation that…

Read More »