2020 has been the year of challenge and change for most businesses and there’s one more big factor to consider before you stop and tuck into some turkey. We’ve faced a health and an economical crisis this year and according to a recent YouGov poll, Brexit is the third biggest concern on business owners minds. So let’s explore what’s to come…
New Years Eve will mark the end of the Brexit transition period and unsurprisingly talks and deals are still underway. I think we all knew in 2016 that this was never going to be a smooth and straight forward process. But despite these complexities and unknowns, there are some knowns about what and how this new order will impact businesses.
Top concerns faced by business owners include the impact on the following:
- Taxes and duty
- Safety standards
- Personal data
- The movement of people
- The movement of goods.
The government have released a really easy-to-use quiz to help individuals and business owners determine how Brexit will affect them. Try it now.
According to Sage, ”there are virtually no businesses in the UK that won’t need to make changes at the end of the transition period.”
The accounting software company said the question is one of degree and all businesses should examine their processes. For example, you might be a car maintenance business serving only UK customers but the replacement parts you require might not be manufactured in the UK. Even items manufactured outside of the EU might be centrally warehoused in the EU before being dispatched to you.
There may be delays at ports for goods in customs clearance areas in the initial period following the end of the transition period.
A service-based business might fall into the classification of serving only domestic customers with no direct reliance on EU sources – for example, a marketing agency.
However, even then the business may hold personal data on EU citizens (see ‘How will Brexit affect the GDPR?’ below), or potentially even use a website that has an .EU domain, in which case you’ll no longer be able to use that domain unless your business has its principle place of business within the EU.”
Will I still be able to employ EU citizens after Brexit?
Yes you will and here’s how…
Until 30 June 2021, you’ll need to continue to check the right to work status of any EU/EEA/Swiss job applicant in the same way as before Brexit/the end of the transition period.
As of 1 January 2021, EU citizens moving to the UK for work will need a visa. To get this, they’ll need to show they have a job offer from an approved employer sponsor.
Therefore, if your business recruits from the EU then you should apply to become an approved sponsor, which typically takes eight weeks from the date of application.
In order to remain working in the UK, your existing employees who are EU, EEA or Swiss citizens – and who are already in the UK as of the end of the transition period – will need to apply to the EU Settlement Scheme by 30 June 2021.
How will Brexit impact your business? Take the quiz and find out…
The government have released a really easy-to-use quiz to help individuals and business owners determine how Brexit will affect them. Try it now.
