As an ICAEW survey reveals that nearly one third of small businesses have still not considered the impact of Brexit, Nick Levine sets out how ICAEW can help prepare for 29 March 2019.
Brexit is now less than six months away, with the UK set to leave the EU on 29 March 2019. While at the time of writing we do not know what the UK’s future trading relationship will look like, it is imperative for businesses to prepare.
This is likely to impact businesses in a number of different areas, such as companies producing goods needing to consider the introduction of new tariffs, alongside all businesses needing to address and understand whether staffing resource may be affected due to a restriction on EU freedom of movement.
Many businesses have still not prepared
While there are also likely to be new post-Brexit opportunities, including potential ease of access to new markets, recently released data from ICAEW reveals that 31% of SMEs have not considered the impact of Brexit, and that more than half (59%) of those surveyed have not undertaken any specific related actions.
We are supporting our members by publishing a number of Brexit related articles on a centralised Brexit hub. This covers a range of information on compliance and sectors including guidance on financial reporting and the tax implications of Brexit. These pages are being updated on a regular basis, as new information becomes available.
In addition to this we have started publishing the ICAEW Brexit Top Tips series, which provides a holistic framework for how businesses can best prepare for Brexit. This is a modular approach initially starting with a review of existing business plans and assumptions, with a specifically designated individual/team then being tasked to manage a Brexit review.
The latter requires partnering with different business functions from the individuals managing the Brexit review to collect and collate the impacts and risks from discussions with operational departments.
Finally, these findings will be brought together and quantified in forward looking financial forecasts. This is an iterative approach which may require further tweaking depending on new Brexit-related information.
Nick Levine is ICAEW Head of Enterprise
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