BREXIT

Global supply chains have come under renewed pressure during the COVID-19 pandemic. Brexit presents another vulnerability that must be managed. While the reach of many value chains is global, a large share of operational networks tend to be regional.

As the UK reaches the end of its transition period with the EU, any trade resistance could significantly impact UK supply chains, to the point of changing the viability of some production activity in the UK and supplier agreements across Europe.

Below present priority checklist for businesses as the transition period approaches. However, businesses should be cautious that decisions made today have lasting impact tomorrow. Business will need to ensure their operational networks and supplier agreements remain resilient post 1 January 2021 when making these short-term changes.

The additional costs and time at the border is likely to encourage UK and EU businesses to rethink their supply chains - especially those involving perishable goods - even in the absence of explicit tariff rates.

We help our clients to prepare for the worst-case scenario that they face from whatever Brexit scenario eventually materialises, despite the ongoing uncertainty, because BDO’s first priority is to support our clients and maintain business continuity.

We offer the provision of a comparative fiscal analysis for different operating locations and supply chain reviews for making smart changes to supply chain, different business models and corporate structure and the optimisation of the costs. 

Here, we present priority checklist for businesses as the transition period approaches. However, businesses should be cautious that decisions made today have lasting impact tomorrow. Business will need to ensure their operational networks and supplier agreements remain resilient post 1 January 2021 when making these short-term changes.

Transitional law

The State Secretary for Finance has published a draft decision that postpones the consequences of Brexit to some extent. In this draft decision, he indicates that for companies with a 2019 financial year that started before 30 March 2019, the rules apply as if the United Kingdom is still part of the European Union. For financial years starting on or after March 30, 2019, the above applies at that time. 

BDO helps!

BDO can help you, among other things, with drawing up a risk analysis, setting up alternative business structures or assist you with a request for preliminary consultation with the Tax and Customs Administration. Together with our experienced advisers, specialized in international restructuring, we work on a solution that suits your company from a commercial and fiscal perspective. 

More information on how we could help: BREXIT