How Will Brexit Affect International Companies In 2021? Our Guide

Over the past year, the one word that appeared on the headlines of almost every paper, news channel or social media was Coronavirus. It negatively impacted the majority of industries, with many being forced to close and others highlighting a sharp decline in businesses.

As the UK lockdown restrictions begin to ease and as more things begin to open, the attention of the media slowly transitions back to the word that was the centre of all media outlets attention in late 2019 early 2020 – Brexit.

Despite Brexit, the UK is still ranked as one of the best locations for businesses that are looking to expand their company internationally. For international businesses looking to expand their company in the UK, here are some of the effects Brexit will have on your company.

Alterations To Regulations

It is impossible to detail the exact impact Brexit will have on regulations as it will differ between sectors, however, it is firmly believed that it will potentially be enormous.

Across many areas, the UK already works to European-wide standards. Going forward it is likely that UK regulations will continue to comply with those standards – even though they are unable to alter the policies behind them. Just like with the majority of areas affected by the Brexit deal, there will be some challenging transitional adjustment issues, in particular where the UK chooses to diverge.

Impacts On Tax

For businesses unsure about the impact or require the extra bit of support, it is worth seeking advice from professional Chartered Accountants & Business Advisors. In London, various firms will work closely with you to ensure that you thrive in this new market, despite the changes to regulations and how businesses should operate.

For international companies and enterprises looking to establish their business in the UK, firms such as Goodman Jones, are a great choice in guiding businesses on how to navigate minefields like the UK tax code.

Changes To Supply Chains

Currently, modern manufacturing relies heavily on supply chains offering a just in time delivery service of components across various borders. However, the Brexit deal that was agreed upon will have a considerable impact on how goods are manufactured in both the EU and the UK. One of the real risks is that Brexit will cause increased costs and delays to supply chains.

Although tariffs are primarily avoided on goods, companies, however, will have to complete additional paperwork and declarations, for when they are transporting goods across the EU/UK border. There are also additional compliance costs for companies in either appointing a customs broker to handle all the paperwork or the business completing it themselves. Whilst this impact might not seem as significant as the imposition of tariffs would have potentially been, it does still mean additional costs for businesses.

Modifications To Employment Requirements

There are various ways in which Brexit can impact the growth of international businesses. Aside from changes to the way a business is run, paperwork, finances and things to consider – there is also the concern around updates about staff and employment. Whether it is UK citizens working abroad or EU citizens working in the UK, both will face additional requirements for work, residence and also travel.