Do you understand the risks and costs of a hard Brexit to your business? What’s your contingency plan?
The Brexit clock is ticking.
The Brexit clock is still ticking.
More than two years after the UK’s notification of its intention to leave the EU under article 50 TEU and the UK’s political promise to leave the EU, it is still unclear whether and how the UK will leave the EU on 31 October 2019, the current default Brexit date.
As shown since the UK’s House of Commons return from summer recess, the UK political situation is – at the very least – difficult. Since last July the UK has a new Prime Minister, Mr. Boris Johnson, who has inherited a divided Conservative Party, the UK Lower House’s refusal to leave without a Brexit deal and also the UK Lower House’s refusal to approve the existing Withdrawal Agreement (the existing divorce agreement was voted down thrice).
To make matters worse, Mr. Johnson has lost the conservative majority in the UK’s House of Commons, MPs voted to block a no deal Brexit and demanded that the UK prime minister push the deadline to 31 January 2020. In an attempt to regain control, the PM changed opinion and demanded a general election on 15 October, a plan that was thwarted by the opposition.
In light of the continued uncertainty regarding Brexit, the UK’s internal political conflicts and the fact that the EU has taken the position that extensions will only be granted if a clear UK plan is presented, it is advisable for businesses to continue preparing for a no deal Brexit. The current Brexit date not only remains the default exit date but Brexit means that the UK will become a third country, with or without an organized transition period. Furthermore, as it would be unusual for the future relationship between the EU and the UK to be finalized within any transition period, the impact of a no deal Brexit should be understood, mapped and prepared for.
Therefore, it is essential for your business to first understand the risks and costs of a no deal Brexit and, second, develop a contingency plan for all impacted areas. PwC Legal can assist.
An in-house workshop during which a multi-disciplinary team of experts will provide you with an update on the current state of the Brexit negotiations and during which they’ll host an interactive discussion on the impact of Brexit on the various aspects of your business.
Assessing the financial impact and the risks for your business from a worst-case-scenario perspective (hard Brexit on 30 March 2019) and scanning all aspects of your business (supply chain, operations, VAT, customs and excise duties, direct taxation, contracts, IP, data protection, trademarks, GDPR, product certification, corporate structure, regulatory, HR, workforce and global mobility/immigration, etc.) for potential risks and costs.
A Brexit assessment should always lead to a tailor-made map of all the risks for your business in relation to Brexit, including probabilities, costs, urgency and the time needed for implementing a contingency plan to mitigate the damage.
Our Brexit team works closely with the various business units in your organisation on an international level to work as cost efficiently as possible and to allow you to closely monitor the project.
During our Brexit assessments we will, where appropriate, leverage the services available within PwC for specialised supply chain, HR law, migration, income tax, VAT, customs and/or other expertise.