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A guide on preparing for Brexit in case of a no deal

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Is your business preparing for Brexit? A no-deal Brexit is one of the outcomes that the UK government and the European Union (EU) are drawing up plans for, as the date that UK leaves the EU edges ever closer.

But what does a no-deal Brexit mean for businesses and how can your company prepare if the UK leaves the EU on those terms on 31 October 2019 (previously 29 March 2019)?

To help you, Preparing for Brexit is a white paper that covers the implications of a no deal and it highlights a series of areas including customs and finance. It also offers sector-specific advice for six key areas, including professional services and food and drink.

In this white paper, you will find information on the following topics:

What a no-deal Brexit means for the following and actions to take:

  • Supply chain
  • Customs and indirect tax
  • People
  • Regulatory requirements
  • Finance
  • Legal
  • Systems and data

What a no-deal Brexit means for the following sectors:

  • Food and drink
  • Agriculture
  • Pharmaceuticals
  • Chemicals
  • Retail
  • Professional services

Here’s an excerpt from the white paper:

Preparing for Brexit

Your business needs to put contingency plans in place in case of a no-deal Brexit. Read this white paper for advice to help you start your preparations.

Download your free white paper

Preparing for Brexit

As of the publication date of this white paper, the UK is scheduled to leave the EU on 29 March 2019 (note, this is now 31 October 2019). The UK may leave immediately or, after a few months’ delay, in a no-deal scenario, leave with a withdrawal agreement in place.

Sage is focusing its efforts on delivering support to our customers in preparation for Brexit. This paper is simply designed to flag the immediate steps that will be required if a no-deal Brexit becomes likely, as this is the outcome that could demand the most rapid and wide-ranging business preparation.

The lack of business preparedness

Whichever occurs, or even if there’s an extension of Article 50, to create more time for negotiation, research by Sage of 1,000+ UK-based SMEs shows that very few businesses have a plan in place.

Just 26% of businesses reported they are preparing for a no-deal, while an additional 27% said they were not currently preparing but would in the future.

But who can blame businesses when so much uncertainty remains? Businesses are crying out for guidance, as much of the content available today is complex and difficult to consume.

Another survey that Sage commissioned with YouGov reports that over 50% of all businesses would like more information on issues such as tax and duty reporting, personal data storage, and the impact on safety standards. It is for these businesses that Sage has published this white paper.

The information we have right now

Here’s the basics of what we know for sure.

Should the Withdrawal Agreement (or a variant) be ratified then there will be a transition period until 31 December 2020, which the agreement says could be extended for up to two years by mutual UK and EU agreement.

During this time little will change – the UK would be bound by EU rules and effectively remain part of the Single Market and Customs Union.

Businesses would then only have to adjust when the UK moves to a future yet-to-be negotiated UK-EU relationship, once the transition period has ended.

In the event of the government being unable to ratify a Withdrawal Agreement then, according to existing legislation, the UK will leave the EU abruptly as of 29 March 2019 (31 October 2019) and EU legislation, regulation and institutions will no longer have oversight in the UK.

Because it represents the most significant change, it is this no-deal scenario that has seen most of the preparation by the UK government and the EU, even though both continue to state that this is not an outcome they desire.

For more useful advice, download your free white paper – Preparing for Brexit.

Note: This article has been updated due to the extension to Brexit, with the UK due to leave the EU on 31 October 2019.

Preparing for Brexit

Your business needs to put contingency plans in place in case of a no-deal Brexit. Read this white paper for advice to help you start your preparations.

Download your free white paper

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