How Will UK Businesses Perform After Brexit?

Brexit may have taken a backseat in the news during the pandemic, but it is very much still happening and the business landscape in the UK is already changing. The UK officially left the EU on January 31st 2020 with a trade deal being struck on December 24th, which was welcome news by UK business owners, but there still remains a great deal of uncertainty over what the implications will be of Brexit in the short and long-term.

Trade

Obviously, imports and exports will be a key area and there are already some stories appearing of disruptions at the borders. The trade deal allows UK businesses to continue tariff-free trade, but there are some new rule changes which involve exports and imports having to qualify for tariff-free trading as well as businesses having to apply for an Economic Operator Registration and Identification number. It is a complex situation, so businesses may require external assistance with some of the issues surrounding Brexit and can source information from a legal delivery service.

Will Customers be Affected?

In addition to potential implication on how a business can operate, companies are also concerned over whether Brexit will have an impact on their customer base. It is still hard to say what the impact will be, but it is predicted that Brexit will cause a 6.7% loss in GDP growth in the next 15 years not to mention the economic fallout of COVID-19. However, Brexit could also allow UK businesses to expand their customer base to places outside of the UK and EU, including emerging markets like Brazil.

Business Travel

Business travel is unlikely to be the same for a while due to the coronavirus pandemic. It will also be changed by Brexit, including needing at least 6 months on a passport to visit EU countries, work permits and limits on the length of stay allowed just to name a few changes.

Potential Benefits

While there are certainly many potential issues with Brexit and it is important for businesses to stay aware on the challenges it might create, it is also important to highlight the potential benefits. As mentioned, it presents the chance to engage with more dynamic markets outside the EU, it could allow businesses access to a deeper talent pool and there will be less red tape for entrepreneurs to deal with.

It is hard to say what the impact of Brexit will be, especially when the pandemic has created further challenges, but business owners need to understand how it could affect them and take steps to overcome the key challenges.