The Business Exchange Bath & Somerset Issue 10: Winter 2018/19 | Page 10

FINANCE No Deal Brexit: Time to Prepare by Ian Lloyd, General Practice Manager at Milsted Langdon The chances of the UK crashing out of the European Union (EU) without a deal may seem like a nightmare for some businesses, but it could soon become reality if the Government fails to conclude negotiations successfully. While the Government has made it clear that it intends to secure a deal it has said that at a ‘no deal’ strategy would contain a “commitment to prioritise stability for citizens, consumers and business”. In the event of a ‘no-deal’ Brexit, the UK will be forced to utilise existing World Trade Organisation rules and will support customs operations by utilising “highly automated, risk-based and intelligence-targeted customs controls.” With the possibility of a ‘no-deal’ Brexit looming overhead, it is vitally important that businesses begin preparations sooner rather than later. For many businesses, the first thing is to understand what effect the changes to customs and excise procedures will have on their operations so that they can plan around them. This means looking at the potential impact on the businesses own supply chains and considering the financial health of regular customers. A ‘no-deal’ Brexit would lead to: • Businesses applying the same customs and excise rules to goods moved between the UK and the EU as currently applies to goods moved between the UK and countries outside of the economic bloc. This could drastically slow down the importation and exportation of goods and increase administration. • The application of customs and excise rules to goods that the EU receives from the UK, including the preparation of customs and safety and security declarations. • An end to the use of the Excise Movement Control System (EMCS) to control suspended movements between the EU and the UK, which will result in the UK placing an immediate duty suspension on all goods already within the EU or being imported into the UK at the time. Experts are already predicting long delays along the borders shared between the UK and EU on the days following a ‘no deal’ scenario, as well as the immediate application of tariffs on goods being brought in or exported under the World Trade Organisation non-preferential rules, which will see businesses pay Most Favoured Nation (MFN) tariffs on their exports and imports. While you may not directly supply to the EU yourself or receive products and raw materials from the economic bloc, it is likely that, considering the UK’s close relationship with the EU, your business will be affected by these changes in some way and should therefore look into either using the expertise of an existing exporter, such as a customs broker, freight forwarder or logistics provider or acquire the appropriate software and secure the necessary authorisations from HM Revenue & Customs to export and import themselves. Whilst it is not clear how Brexit will affect each and every business, our team can ensure the right safeguards and securities are in place to protect your business going forward. At Milsted Langdon we are already working with fellow peers across Europe, and particularly in the Republic of Ireland, to help clients establish new overseas subsidiaries in countries that will remain within the EU after Brexit to assist them with future trading arrangements. [email protected] 01225 904940 EPOCH’S YEAR IN REVIEW We asked Epoch Wealth Management’s Tom Annear how business faired in 2018. It’s been a busy year having already taken on eight new staff members (and with another two about to join at the time of writing), we are looking at further recruitment in the coming months to bolster our teams. The main news on this front is the enhancement of our Investment and Charity Teams, with two significant hires, and more to follow. Bilyana Petrova has joined the Investment Team providing critical oversight of the trades being placed on behalf of clients. Max King has been brought in to help expand and refine the service Epoch provides to Not-For- Profit clients, whilst also providing support to the Investment Team. We’ve also been ranked in the Top 100 UK 10 THE BUSINESS EXCHANGE 2018 Financial Planning firms for a fifth consecutive year by leading industry publication, New Model Adviser. Being part of this list demonstrates that our client service proposition is central to our business model. It judges firms on a number of metrics, including financial performance, investment management skill, involvement in raising awareness of the importance of financial planning and more. Being listed for five years running is a real testament to how we do things and our business success. Looking forward, there are plenty of opportunities and challenges we and others will face. Not least, Brexit - however that manifests itself - but increasingly, stricter regulation and ever more complex rules to consider when planning for our clients’ futures. Thankfully, we rely on the brilliant cash flow modelling tool we use, i4C, which allows us to show clients what their financial future could look like. By really understanding what motivates our clients; why they do what they do and why they do it, we can help them plan for a life of financial autonomy. We can show them the impact of taking one path over another; for example, what the true cost of private education is (it’s not just the money, it’s the extra work needed to stay on track), or when they can actually sell their business and not have to worry (it’s often a smaller amount than they thought). For more info: www.milsted-langdon.co.uk