Businesses underprepared for the departure from the EU
28 Mar 2017
Tomorrow will be a historical day for the United Kingdom, as Prime Minister Theresa May triggers Article 50 and the Brexit process commences.
Introduced in 2009, Article 50 of the Treaty on European Union provides the formal exit mechanism for a country wishing to leave the EU.
According to the Treaty, once Article 50 has been triggered, the EU will “negotiate and conclude an agreement with [an exiting member] state, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union”.
If the process is carried out correctly, the UK will officially no longer be part of the European Union by the start of April 2019.
With May's plans to pursue a "hard Brexit" outside of the single market and the customs union, the future remains largely uncertain for UK SMEs. Businesses must therefore ensure they have the right structures in place to respond quickly to the changing market conditions.
Yet a recent survey shows that, despite being worried about the impact it will have on their businesses, 44 per cent of UK business owners and managers are unprepared for Brexit.
The survey, conducted by Opinium Research, shows that just 26 per cent of businesses have confidence that the UK government is prepared with a structured plan for post-Brexit, with 31 per cent stating that the loss of access to the single market is their biggest concern.
In this rapidly changing economic landscape, it is also essential that SMEs partner with business advisers who understand the challenges faced by SMEs and the environment you operate in, helping you navigate any pitfalls and implement the appropriate structures and strategies required to remain successful and increase your net worth.
At Beavis Morgan, our specialists to SMEs are available to provide comprehensive business advice and to structure your business for tax. We can also assist with business plans and strategy execution, long and short term forecasts, budgets, sensitivity analysis, and calculating and checking compliance with covenants.