Brexit is a combination of the words Britain and exit. As the name suggests, this pertains to Britain leaving the European Union after almost half a century since it first became a member in 1973. This vote was approved last 2016 and was put into effect on January 31, 2020. However, both parties agreed that a transition time of 11 months be given to iron out the terms of the new trade deal which was then finalized on December 24, 2020.
On December 31, 2020; 23:00 GMT, the new trade deal took effect which now defines a new way of living, trading, and working between the United Kingdom and the European Union.
See more as well on this article: https://www.bbc.com/news/uk-politics-32810887
Brexit: Trading & Business
Although it was agreed that there would be no tariffs on meat, fish, and dairy, this still means that there will be new paperwork, safety checks and customs declarations to do which may cause serious delays in businesses if they are not prepared.
In connection to this, the UK will delay most checks for six (6) months, but the EU conducted said checks as soon as the new trade deal was in effect. UK government made plans to remedy this by diverting trade to other ports around the country, but government minister Michel Gove warned UK businesses to expect some “bumpy moments”.
Some Changes of the Brexit
Here are some of the areas where the EU and UK will have different regulations on:
1. Copyright, trademarks, and patents
2. State grants and block exemptions
3. Transport and logistics
4. Eco-compliance of products
5. Import/export of goods; VAT payments and refund claims, customs
6. Environmental, industrial standards
7. Use of key databases
8. Mutual recognition of professional qualifications and licenses
9. Travel VISA
Having said this, Northern Ireland will be an exemption and will still follow many of the EU’s rules to avoid alienation with the Republic of Ireland.
The EU has been Britain’s biggest source of foreign investment and has helped London cement its position as a global financial centre. This is why there are people against Brexit because of the loss of privileges it had when the UK was still a member of the EU.
There are still a lot of things to decide on in regards to the new relationship between the UK and the EU. Although both have decided not to change the rules too much, nothing is set in stone, especially after the initial period of some agreements. Some may even result in disputes which may then lead to a no-deal outcome.
Nevertheless, even though Brexit is frequently seen as a risk, it still has a great potential to bring new opportunities for those that wish to capitalize on them.
If you are seeking more Brexit updates and how you can repurpose your business or more business planning so that it would snugly fit into the present world situation, Annette & Co. is here to offer you a FREE consultation. Annette Ferguson – Chartered Accountant and Certified Profit First Professional – can help you unlock financial strategies to improve the profitability of your business amidst an economic crisis.
Before you make any drastic decisions, seek out a professional’s opinion. You can also follow us on any of our social media channels