As time ticks by and as the UK Government and the European Union seem to be at complete loggerheads as they vainly attempt to broker some sort of Brexit deal, the best thing for businesses to do may be to prepare for a no-deal scenario. This way at least they will have plans in place to deal with the fall-out of this particular course of action.
No Time For A Comprehensive Free Trade Deal
Crona Clohisey, a public policy figure from Chartered Accountants Ireland, is quoted in the Newsletter website as saying: “Even in the best-case scenario, if the UK and EU reach some sort of agreement on trade, there isn’t time for it to be the comprehensive free trade deal that was hailed during the Brexit referendum– that process takes months, even years to arrive at.
“The best we can expect is the bare bones of a deal which will likely prioritise avoiding the imposition of tariffs and quotas on goods and is unlikely to extend fully to services.”
Act On These Recommendations
In the same article businesses are advised to get up to speed by acting on the following recommendations:
`Firstly, they register online with HMRC or Irish Revenue for an EORI number (Economic Operators Registration and Identification), without which “you cannot trade”.
`They also recommend classifying any goods that are being imported and exported (including establishing their origin) for customs duty.
Setting up a line of credit “to deal with the customs duties that will arise on imports from the UK or Ireland” is also important, they said.`
I think it is fair to say that the vast majority of businesses, as well as the general public, are crossing their fingers that a deal will be reached in the coming weeks and some sort of compromise is reached, but time is running out fast.
A Wedge Driven By The Internal Market Bill
The Internal Market Bill being proposed by the UK Government has driven a huge wedge between the two parties which may turn out to be insurmountable. I am sure that both sides would love to be able to finally reach an agreement but there seem to be certain lines in the sand that neither side will step over.
At WHR Accountants we help businesses in all sectors, whether they are a small, medium or large concern, to ensure their accounts are organised and in good order. We help with both short and long term business plans so that they can grow their business in a safe and assured way. If you would like a free initial consultation please get in touch with our offices by calling 028 3752 2909.