Kenneth McEwen: Time to plan a new post-Brexit route?
Following the vote to leave the EU, the reaction from currency and stock markets was swift.
Since then, markets have stabilised somewhat, at least in the short term. It is, however, still too early to tell what the full implications of the result will be, and there is likely to be a long period of uncertainty that will undoubtedly impact on investment markets.
All businesses should have contingency plans in place and these should be reviewed on a regular basis. In light of Brexit, businesses should all be considering additional scenario planning to help mitigate any challenges which may arise as a result of the negotiations which will take place.
Regardless of the size of the businesses, managers should:
Conduct a supply chain review to understand where there are any potential weaknesses as a result of Brexit. For example, where are suppliers located and what plans do they have in place?
Determine how much of your business is from EU markets.
Establish if your customers have any concerns as a result of Brexit and what you could communicate to them to help alleviate their concerns.
Assess to what extent sales could be affected and whether current business margins have the flexibility to deal with fluctuations in tariffs on goods.
Conduct a VAT review, in particular how any changes to VAT may impact on the ability of the business to supply to the EU.
Consider advantages or disadvantages of either delaying or bringing forward investments and projects.
Assess staffing requirements and be ready to address any employee queries throughout the exit negotiations. Careful consideration should be given to the format and timing of this communication.
Brexit will provide the UK with greater autonomy to tailor the tax regime to support different industries, regions and groups. In the short term, uncertainty and further tax rules will create challenges for business, but it could also create opportunities.
• Kenneth McEwen is a director at accountant and business adviser Henderson Loggie