{"id":5482,"date":"2021-01-27T08:15:52","date_gmt":"2021-01-27T08:15:52","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=5482"},"modified":"2026-01-29T09:50:49","modified_gmt":"2026-01-29T09:50:49","slug":"how-will-brexit-affect-businesses","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/how-will-brexit-affect-businesses\/","title":{"rendered":"How will Brexit affect businesses? 14 things you need to know"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tStrategy, Legal & Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tHow will Brexit affect businesses? 14 things you need to know\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tKeir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Editor\u2019s note: This article has been updated in light of the UK-EU trade deal that was agreed at the end of 2020 and is now in place.<\/em><\/p>\n\n\n\n

YouGov polling reveals that Brexit has dropped off the radar of most people in the UK.<\/p>\n\n\n\n

Only 34% of poll respondents said Brexit was an important<\/a> issue facing the country in late January 2021 \u2013 a fall from almost twice that measure in polling from mid-December 2020.<\/p>\n\n\n\n

But for businesses, the challenges of adapting to Brexit remain profound. This is likely to be the case for coming years, too, as additional new legislation and cooperative technologies are introduced by the UK and European Union (EU).<\/p>\n\n\n\n

As of 1 January 2021, businesses are getting to grips with the Trade and Cooperation Agreement<\/a> (TCA), the free trade agreement referred to colloquially as the trade deal. Along with other UK-EU agreements, this was announced just before Christmas 2020.<\/p>\n\n\n\n

This article attempts to outline the pertinent points of the UK-EU agreements, with particular reference to customs and VAT, as well as the other major adaptations required businesses now the Brexit transition period has ended.<\/p>\n\n\n\n

The goal is to further the transition and transformational processes in your organisation. But this article can be no substitute for specific advice, legal or otherwise.<\/p>\n\n\n\n

The new Brexit agreements are complicated, and ensuring your future trading is correct requires expert knowledge for your situation.<\/p>\n\n\n\n

Below we refer often to Great Britain. This comprises England, Scotland and Wales. It\u2019s not the same as the United Kingdom, which also includes Northern Ireland.<\/p>\n\n\n\n

This distinction is required because trade with Northern Ireland differs significantly compared to Great Britain.<\/p>\n\n\n\n

This FAQ article covers the following questions:<\/p>\n\n\n\n

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  1. What was Brexit?<\/a><\/li>\n\n\n\n
  2. How does Brexit affect trade and how does Brexit affect my business?<\/a><\/li>\n\n\n\n
  3. What are the preferential tariff rates following Brexit?<\/a><\/li>\n\n\n\n
  4. What are the Brexit trade deal rules of origin?<\/a><\/li>\n\n\n\n
  5. What\u2019s an Authorised Economic Operator?<\/a><\/li>\n\n\n\n
  6. How do I import from the EU following Brexit?<\/a><\/li>\n\n\n\n
  7. How do I export to the EU following Brexit?<\/a><\/li>\n\n\n\n
  8. How is Northern Ireland different to the rest of the UK following Brexit?<\/a><\/li>\n\n\n\n
  9. How do I export goods to non-EU countries from the UK after Brexit?<\/a><\/li>\n\n\n\n
  10. Product certification and conformity marking after Brexit<\/a><\/li>\n\n\n\n
  11. Business travel to most EU countries following the end of the transition period<\/a><\/li>\n\n\n\n
  12. Am I still be able to employ EU citizens after Brexit?<\/a><\/li>\n\n\n\n
  13. How does Brexit affect the GDPR?<\/a><\/li>\n\n\n\n
  14. How are the financial markets being affected by Brexit?<\/a><\/li>\n<\/ol>\n\n\n\n
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    Download your free guide, Business after Brexit, and discover what you need to know and do from 1 January 2021<\/a><\/div>\n<\/div>\n\n\n\n

    1. What was Brexit?<\/h2>\n\n\n\n

    In a referendum on 23 June 2016, the UK electorate voted to leave the EU.<\/p>\n\n\n\n

    The UK formally left the EU on 31 January 2020. At that point a transition period began that ended on 31 December 2020.<\/p>\n\n\n\n

    Key from a business perspective is that, following the end of the transition period, Great Britain is no longer a member of the EU\u2019s single market and customs union.<\/p>\n\n\n\n

    These enable the EU member states to function as a single trading area with no tariffs or border checks, little requirement for import\/export documentation, and with a combined VAT system.<\/p>\n\n\n\n

    Great Britain now has customs borders with the EU, operating at crossing locations such as Dover and Holyhead, and a separate VAT system.<\/p>\n\n\n\n

    Shortly before the end of the transition period, a final piece of the jigsaw was put in place when the UK and EU legislatures ratified a free trade agreement.<\/p>\n\n\n\n

    This means that 100% of trade between the UK and EU countries receives preferential treatment \u2013 meaning there are no customs tariffs, and no quota (providing \u201crules of origin\u201d conditions are met \u2013 see below).<\/p>\n\n\n\n

    However, there is now a requirement for customs documentation, and VAT accounting requirements have changed.<\/p>\n\n\n\n

    Note that, under the Northern Ireland Protocol, Northern Ireland remains part of the EU customs area in respect of goods, in order to retain an open border with the Republic of Ireland.<\/p>\n\n\n\n

    However, there is free movement of good between the UK and Northern Ireland (with some conditions as part of the Northern Ireland Protocol \u2013 see \u201cHow is Northern Ireland different to the rest of the UK following Brexit?\u201d below).<\/p>\n\n\n\n

    2. How does Brexit affect trade and how does Brexit affect my business?<\/h2>\n\n\n\n

    In broad terms, and outside of niche industries such as farming or medical research, businesses find themselves examining and revising the following areas of their business:<\/p>\n\n\n\n