February 15, 2019

TMF's Opinion: 5 Brexit-readiness actions that businesses can take now

I don’t think anyone in the business community truly believed that there’d still be a lack of clarity on Brexit with fewer than 50 days to go. But this is the reality that firms must now respond to.

It’s a very troubling time for UK businesses, or really any business with operations that are impacted by the UK economy, as the political uncertainty around a Brexit agreement drags on. Companies are understandably triggering emergency plans, the CEO of Airbus issued a plea to lawmakers to avoid a hard exit, and several major food retailers have warned that higher prices and empty shelves are the realities of a no-deal Brexit due to the high reliance on the EU for produce.

TMF Group’s Consultancy Solutions team has been fielding some common questions from firms with European operations. 

If you’re among those who have been taking the ‘wait-and-see’ approach, it’s time to hop off the fence and urgently start putting Brexit contingency plans in place. Here are five things you can do to help minimise the impact of trading interruptions – be it a deal or no-deal eventuality.

1. Establish an entity outside of the UK

While few suggest abandoning the UK completely at this (or any) stage, establishing an entity in mainland Europe is a very popular action, and for good reason; it helps to ensure operational continuity post-Brexit. More than 250 UK companies have reportedly expressed an interest in expanding operations in the Netherlands for example. But depending on your industry and needs as a business, there are four other key European jurisdictions that may best suit you.

2. Establish an entity in the UK

A hard Brexit has economists and business leaders forecasting the worst for Britain, but the UK remains the world’s 5th largest economy, and business in the country certainly won’t grind to a halt after 29 March. With a population of more than 66 million requiring goods and services, setting up a UK company is an essential move to retain a trade link with the country and therefore your strategically vital local customer base.

3. Review your contracts and suppliers

Just 7% of the proactive business leaders we surveyed had mapped and audited their supply chains in preparation for Brexit.

It’s essential to conduct a review of your contracts in order to identify any that may leave you exposed. Likewise, you should speak to all of your suppliers and receive reassurances that they’re far along on their own contingency plans. 

4. Anticipate changes in UK and EU regulations

Big question marks remain over exactly how and when regulation standards will shift, but when they do, there will be knock-on effects. 

The pharmaceutical and healthcare sector is expecting the European Medicines Agency (EMA) to operate at a reduced capacity as it relocates from London to Amsterdam. The future ‘EU versus UK’ regulation of clinical trials, pharmaceuticals and medical devices and their impact on drug manufacturing, packaging and supply are other areas being examined. 

VAT, Customs Duties and Withholding Tax are the primary taxes set to be affected by Brexit, but Insurance Premium Tax and changes to the transfer pricing rules coming out of BEPS may indirectly play an important role too.

Make sure you’re across the latest UK and EU regulatory discussions and clarifications for your industry, and understand what changes may be ahead. It’s also important to check the post-Brexit validity of any associated business licenses that you hold.

5. Conduct a staff audit

How dependant are your operations on the free movement of EU citizens? Do you know how your legal and HR responsibilities will change? If you’re relocating operations, is there an availability of staff locally or do you have enough existing employees willing to move?

Conducting an audit of the people in your organisation, at all levels, is key to understanding what their post-Brexit residency and employment status will be. Just 11% of our proactive survey respondents had audited their employees’ work locations, immigration statuses and employment contracts. Businesses that don’t do this risk surprise losses of personnel in senior positions or with unique skill sets that may be hard to replace.

Talk to us

The clock’s ticking, and while some of the abovementioned Brexit-readiness actions may seem overwhelming, with the right support they don’t have to be.  Our experts stand at the ready to ensure you are not left navigating this uncertainly alone.

Our comprehensive QuickStart: to Brexit services help you figure out what Brexit means for your business. From working sessions to readiness assessments and ongoing guidance and support.

Contact us to find out how we can help you.

Download your free copy of our Brexit snapshot report.

Source: https://www.tmf-group.com/en/news-insights/articles/2019/february/brexit-readiness-action/

More News

See all

September 29, 2023

Green growth takes center stage at Vietnam Green Building Week

Read more

September 29, 2023

[CORPORATE SUPPORT] BASF Vietnam and partners rebuild seventh school for 100 students

Read more

September 29, 2023

EuroCham attends discussions on the draft decree pertaining to the 2023 Tendering Law

Read more

September 29, 2023

EuroCham unveils upcoming Green Economy Forum (GEF) 2023 at Hanoi press conference

Read more

September 29, 2023

[CORPORATE SUPPORT] Nestlé ranks first in coffee sustainability

Read more

September 28, 2023

Empowering Vietnam’s agricultural sector: EuroCham attends seminar on innovation for export competitiveness in agriculture

Read more

September 28, 2023

EuroCham Transportation and Logistics Sector Committee Meets with Ba Ria-Vung Tau Customs

Read more

September 22, 2023

EuroCham Vietnam attended National Assembly’s Vietnam Socio-Economic Forum 2023: Reinforcing Internal Capacity for Sustainable Growth

Read more

September 22, 2023

EuroCham Medical Devices and Diagnostics Sector Committee (MDDSC) joined ASEAN Common Submission Dossier Template Workshop

Read more

September 22, 2023

EuroCham’s collaborative meetings with the EU Ambassador-Designate Julien Guerrier

Read more

September 22, 2023

EuroCham Vietnam extended a warm welcome to French Ambassador to Vietnam H.E .Olivier Brochet

Read more

September 22, 2023

EuroCham Vietnam joined a launch of the “Circular Economy & Pioneering Models” book

Read more

September 21, 2023

EuroCham Vietnam hosts an exclusive evening to welcome EU Ambassador-Designate to Vietnam

Read more

September 15, 2023

EuroCham engages in a productive dialogue with the Administrative Procedures Control Agency and Reform (ACAPR)

Read more

September 15, 2023

A resounding success: Vietnam International Sourcing Expo 2023 and the EU-VN Trade Forum

Read more

September 15, 2023

[Event recap] EuroCham Women in Business Sector Committee hosted successful Roundtable on Gender Pay gap with Fulbright Professor Graeme Walker

Read more

September 15, 2023

[Sector Committee spotlight] Food, Agri and Aqua Business Sector Committee (FAABS)

Read more

September 14, 2023

Ho Chi Minh City Economic Forum 2023 and the 100 CEOs -Tea Connect spotlight green growth and net zero initiatives

Read more

September 12, 2023

EuroCham Vietnam engages in key talks with Luxembourg delegation to bolster EU-Vietnam economic relations

Read more

September 08, 2023

EuroCham participates in an inaugural meeting of Government Taskforce on Administrative Reforms (APR)

Read more

September 08, 2023

[CORPORATE] First Bayer ForwardFarm of Southeast Asia launched in Vietnam

Read more

September 08, 2023

EuroCham contributes to a critical discussion on attracting foreign investment in high-technology and promoting technology transfer

Read more

September 07, 2023

EuroCham Food, Agri, and Aqua Business Sector Committee (FAABS) explores sustainable aquaculture solutions at Skretting Factory in Long An

Read more

August 31, 2023

EuroCham delegation visits Bac Giang to discuss EU-Vietnam business trends

Read more

August 25, 2023

EuroCham Green Growth Sector Committee spotlights blue-green infrastructure solutions

Read more

August 25, 2023

EuroCham Vietnam engages authorities and state-owned enterprises to drive green growth and spotlight GEF 2023

Read more

August 25, 2023

[SUPPORTED EVENT] Nestlé Vietnam – Innovation and sustainability bring competitive advantages in business

Read more

August 25, 2023

[Sector Committee spotlight] Legal Sector Committee (LSC)

Read more

August 24, 2023

EuroCham’s Tourism and Hospitality Sector Committee visits Binh Thuan to explore tourism promotion collaboration

Read more

August 24, 2023

[Event recap][Business Luncheon] Mid-year review and Forecast for the second half of the year On the Vietnamese Economy

Read more

Pour une expérience optimale, veuillez tenir votre mobile à la verticale !

Platinum Partners

Gold Premium Partners

Gold Partners

Silver Partners

Premium Service Partners