What you need to know if there’s a “No Deal” for Brexit
Start your Brexit Action Plan:
1. Gather available information:
Some suggested useful points of reference are below. These are not exhaustive:
Your accountant may have additional information and like us at Centurion VAT will be able to assist you with more specific advice on the issues but clearly that type of specialist advice will need to be budgeted for.
2. Identify key areas:
Work through the key areas – The Business Wales Portal allows you to assess your business readiness and this in combination with the British Chambers of Commerce checklist could be a great place to start before you go out to look for specialist advice.
The Operations and Finance Director roles are key to this evaluation of impact and a review should result in the identification of the key areas that need attention and the order of priority. Larger organisations may well have HR and IT staff to evaluate how people are affected or gaps and additional needs for data processes, whether financial or trade- related.
3. Issues and Actions Report:
Keep it simple and write up the issues you’ve found, putting the required Actions against each Issue. It may be that you need more information; a staff member has an action to resolve or you identify where you need external advice and support. At least you can identify the route forward, the impact on staff time to resolve and cost implications where support is needed.
There is a £50m fund in Wales called the EU Transition Fund which was announced in January 2018 which is there to provide a combination of financial support and loan funding as well as supporting the provision of technical, commercial, export related and sector specific advice for businesses in Wales. A further £7.5m of funding was announced in October 2018. Could that be a source of assistance for you.
4. Project Management:
If we consider the 29 March 2019 as the deadline in a worst case “No Deal” scenario, that’s the most prudent line to take. This gives the timeline to work to and the Issues and Action report will give your business the focus to set deadlines for the research or reviews required.
To give a sense of specifics from the VAT perspective – when we look at a larger manufacturer who is importing and exporting, we undertake a VAT evaluation overview. This includes looking at the VAT specific areas in the supply chain for sales and purchases and we look at existing corporate structures to put in focus relevant issues. Our insight enables Commercial and Financial management to plan their strategy going forward.
The key is not to delay but start the process of planning for Brexit now. You may find that the impact areas are minimal and that in itself will bring peace of mind. If you do highlight areas at least your Issues & Action Plan will put you in control of addressing those issues and moving matters forward.
Share your concerns with Industry or Business groups that you are a member of – they have the ear of politicians and by sharing specific issues they could lobby for specific solutions. A good example is for businesses to lobby government to ask that HMRC applies a “light touch” to possible VAT and Duty errors made in the first-year post Brexit as businesses come to terms with fundamental changes to the way in which they have to operate.
Simple suggestions we appreciate but from our engagement in this issue across the business community it is clear that many SME’s in Wales are still unsure how or where to start. Our approach to VAT and Business life is to “Keep it Simple” where we can – if we can help in your Brexit journey do let us know.
© Centurion VAT Specialists Ltd
Centurion VAT offer an independent and expert source for VAT advice. Based in Wales we work across the UK and have overseas clients who need VAT advice and support when setting up in the UK.
VAT advice for organisations who find themselves at an unfortunate juncture with UK VAT for whatever reason, is where we help out.
An award winning VAT team is what you’ll find at Centurion – evidence of the quality of our VAT advice and service can be showed by our long term retention of clients. Whatever your VAT issue – BREXIT, Making VAT Digital, Partial Exemption or Property then do make contact, with a call on 01633 415390 or email firstname.lastname@example.org