IQ Magazine Issue 19

iQ advice
Uncertainty and confidence could in some cases be more a state of
mind founded on a lack of knowledge and a sense of loss of control.
Perhaps it is the unknown that is underpinning our rational, even
irrational thoughts. Most businesses though, adopt the approach
that if we don’t know what is happening, then it is easy not to do
something, or, to do something would require a level of work or
activity that is not preferred or desired.
For those looking to assess the impact of Brexit
on their business, the starting point might be
around what might change or what is going
to be different. It would seem some of
the changes or challenges ahead are:
• Workforce related, with perhaps for
some businesses a mix of increased
shortages of labour/skills, plus the
potential increase in the wage bill
• The increased cost of imported goods
and raw materials, with the weakening
of the pound
• New trading terms and tariffs for
individual EU member countries if we
come out of the single market, as well,
perhaps, for our non EU counterparts in
the rest of the world
• The potential threat of increased tax
charges to cover the cost of exit and to
underpin the economy during the exit
process
• Changes and variations to tax
legislation generally, as we no longer
have to align with or adopt EU tax
legislation
• Loss of and/or no new funding from
the EU for social and economic projects,
including those linked to infrastructure,
business or deprivation
• The potential re-location of UK
offices of leading global players, if we
come out of the single market.
Whilst there are bound to be other
concerns creating uncertainty for the
period ahead, perhaps the best approach
to deal with this is to scenario plan,
assessing the likelihood of something
occurring, along with the impact such
an event may have on your business.
With such knowledge, at least thoughts
can be given as to how you might
mitigate adverse situations or capitalise
on the more favourable ones. Certainly,
the UK’s exporters should benefit from
the weakening of the pound, and, if you
are a trade negotiator, you are likely to
be in demand.
More information
James Pinchbeck is Marketing Partner with Streets
Chartered Accountants a Top 40 UK accountancy firm.
Email info@streetsweb.co.uk or visit
www.streetsweb.co.uk
issue 19 | page 13