Do you understand the risks and costs of a hard Brexit to your business? What’s your contingency plan?
The Brexit clock is ticking.
On 29 March 2017, the UK officially notified the European Union (EU) of its intention to leave the EU. This notification triggered a two-year delay of article 50 TEU in which the EU and the UK needed to reach a final Withdrawal Agreement. The negotiating parties agreed on the content of the Withdrawal Agreement and the Political Declaration of the Future Relationship on 24 November 2018.
The UK political process has been unpredictable : even though the European Council granted a short extension in order to avoid a hard Brexit on 29 March 2019, the UK House of Commons has refused to approve the negotiated Withdrawal Agreement until today. Because of the lack of political progress, businesses were facing the worst-case scenario, namely a hard Brexit on 12 April 2019.
To avoid a hard Brexit, the European Council granted an extension for a second time. This extension provides the UK government with six additional months to get a Brexit deal approved by the UK Parliament. It is flexible (“flextension”), meaning that the Brexit saga may end earlier than October 31 (the current default setting).
Even though the “no-deal Brexit” is off the table for the moment, there is still a real possibility that the UK leaves the EU without a deal. Regardless of the outcome of the withdrawal agreement, the UK and the EU still need to start the negotiations on their future relationships. Therefore, it is essential for your business to understand the risks and costs of a hard Brexit and to develop a contingency plan. 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.