Ways to Help Your SME Cope with Brexit
by Startacus Admin
A few basic ways you can help your SME cope with the impact of Brexit
The uncertainty that came with the past three and a half years of Brexit negotiations is finally over. It is done. Britain is no longer a member of the European Union. Even though this has been a long time coming, for many businesses, the question still remains - how can I keep my business viable post-Brexit?
Here’s what we know - and what you can do about it.
What to Expect
1.Change in Tariffs
The European Union and the United Kingdom will now independently impose tariffs on each other’s imports - you might have to pay more for some goods and services.
2.Extra Customs
In the current post-Brexit society, the UK functions outside the EU’s market and can no longer enjoy the benefits of open trade and borders with other European Union member nations. This new development will most likely result in stringent customs restrictions for packages leaving and entering Britain.
3.VAT Changes
Brexit will see VAT legislation in the EU and the UK change. UK businesses might no longer be able to use the EU VAT refund system and may not be required to collect VAT on goods sold to customers in the EU.
4.Longer Transit and Shipping Times
This will depend on the new customs regulations guiding trade. With customs regulations expected to get more stringent customs, shipping parcels between the EU and the UK will likely take longer.
How to Prepare for Post-Brexit Changes
1. Look for New Suppliers
It is still uncertain exactly how Brexit will affect custom and tariffs but prepare for it anyway. For example, if your current manufacturer is located in France, we recommend exploring other options closer to home, so you are not struggling to meet up with high tariffs. It is also advisable to relocate your inventory warehouses to closer to the UK if they are currently in an EU country.
2. Revise Agreements
If your enterprise engages in trade with EU nations, you should revise your tariff and shipping policies to express post-Brexit changes. Make sure your policies conform with both the updated European Union and the United Kingdom policy changes and clearly differentiate between the two.
3. Stay Informed
Pay close attention to the news, and it will help you stay up to date and be prepared to implement changes as quickly as they develop.
4. Explore Markets Outside the EU and the UK
The effect of Brexit on e-commerce will cause considerable short- and long-term disruption. Exploring other thriving markets separate from the EU and the UK is the best workaround for new tariffs, trade barriers, more stringent import and customs laws, and lengthier shipping times.
5. Keep your Currency Options Flexible
For a smoother post-Brexit transition, make sure your website is set to accept different currencies, including euro, the U.S dollars, and pounds. Keep all of these finances in a business current account so that they are always accessible no matter the currency requirements,
Flexible currency options will help your business successfully navigate the post-Brexit complications and cater to online shoppers both in the EU and the UK.
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Published on: 19th February 2020
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