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