It is possible for the UK to exit the EU without a deal. You need to prepare your business for the potential impact that Brexit will have on all businesses in the UK. Below, we show you how to best prepare for a no-deal Brexit.
1. Go through the government’s recommendations
Go to GOV.uk and click “Prepare for Brexit.” You will find several discussions on how Brexit will impact your business and recommendations for businesses in specific industries. Look for the one that is most relevant to your business.
2. Find out if you can cross borders freely or will need extra paperwork
Brexit is going to affect businesses in the transportation industry, especially businesses who move goods between the UK and the UK. There is every likelihood that you will require additional licenses, certifications, and so on from EU member states in order to cross the border with your goods to do business.
3. Check if there will be tariffs on your goods
If the UK fails to reach a deal with the EU, there are likely to be tariffs on some goods. If you transport goods between the UK and the EU, you need to research to see if you will be affected.
If your business will be affected by any new tariff, it will be helpful to apply for a duty relief under the duty relief schemes that have been provided for businesses in the UK.
4. Stock up
If your business imports goods from the EU, it will be wise to stock up now because you might experience delays due to paperwork and restriction in border crossing. You don’t want to run out of stock after Brexit. And the cost of goods is likely to increase after Brexit.
5. Prepare financially
Do cash flow projection and plan for worst-case scenario. If you import from the EU or export to the EU, factor in new tariffs and cost of new documentation.
In addition, expect an unstable foreign exchange. This will drive costs higher. Add up all these additional costs and analyse how they affect your business going forward, then prepare for it.
One way you can prepare is to get additional funding, get business insurance, and apply for duty relief schemes if you’re qualified for it. This will help you to mitigate the potential impact of the new tariffs and currency fluctuations. It’s also wise to seek the counsel of a financial advisor in this regard.
6. Change your data protection policy to comply with data protection law
Brexit will affect businesses that operate across the UK and the EU. Transfer of data from the EU to the UK will be restricted. If this is the case for you, you need to adopt a new legal framework to ensure you comply with data protection laws. The UK Government has created a guide on using personal data after Brexit, it’s essential you review it and also seek proper legal advice from your attorney.