Three key challenges of Brexit: how businesses can mitigate them

We’re now almost a year on from Brexit and businesses are beginning to get to grips with the impacts that the agreement is having. Below I discuss the three main challenges I’m seeing with my clients and how businesses should now be adapting, writes Kapil Davda, Partner, Haines Watts High Wycombe.

1  VAT rule changes and additional regulations

With Brexit came additional red tape and administration which can have a significant impact on how efficiently you can trade. The paperwork at borders is taking a lot longer to process and this is what caused the initial disruption at the beginning of the year. However, these delays are still occurring and having the right documentation is critical to reduce the impacts on supply chain, cashflow and stock levels within your business. 

The new rules around VAT have added an extra layer of complexity. Speaking with a business adviser to understand the impact of the changes can help you to come up with practical solutions around what can be done from a compliance angle to improve efficiencies. 

2  Slowing of supply chains

We’re seeing an increase of costs and further delays within supply chains as shortages of materials increases. This is highlighting the need for a simplified supply chain with regular reviews of where any bottlenecks may be occurring. 

All of this is driving demand for larger warehousing space so that businesses can maintain a higher level of stock to mitigate the impacts of any unexpected delays and to reduce the costs associated with importing and exporting on a more regular basis. This of course isn’t a solution for all industries with food manufacturing and farming needing to balance the convenience of holding more stock and avoiding additional wastage.

3  Shortage of people

This is causing challenges in particular within the manufacturing industry where until recently a cheap supply of labour has meant that many haven’t invested adequately in automation.

With business needs changing rapidly at present, having a creative approach to how you utilise your existing talent and prioritising training and development will allow you to plug gaps in skills while automation can streamline your day-to-day processes. Government incentives around apprentice schemes and on-the-job learning can be really valuable in helping you to achieve this.

If you need support with the implications Brexit is having on your business, get in touch.

For more information:

01494 452 921  

kdavda@hwca.com

hwca.com/accountants-high-wycombe