Planning in the context of continued Brexit uncertainty is a major challenge for Irish based business, North and South. Notwithstanding recent developments, it remains impossible to predict with any certainty what outcome will emerge. A Deal, No Deal, an extended Article 50, and indeed No Brexit, all remain possibilities.
Many businesses have already heeded the advice to prepare for No Deal. This is the most prudent approach given the likely negative consequences of being unprepared for such an outcome.
Some of the work done in preparing for No Deal will benefit your business - even if a deal is done or a deferral occurs. For example:
- Fully understanding your supply chain for goods, services and data and the customs duty procedures and tariffs that may arise will be valuable in planning for any post- transition trade agreement and in planning for diversification
- Reviewing cash flows and working capital may generate improvements in both
- Communicating with staff who could be affected by changes in their rights to reside and work is highly likely to be well received by them.
To help you prepare for these challenges, we have updated some recommended actions that businesses of all sizes can take to prepare for Brexit in whatever form it may take:
- VAT and customs
- People, mobility and citizens’ rights
- Financial and cash flow impact
- Services
- Data
- International financial services
It is important to note the position of the European Commission with regard to a No Deal Brexit has not changed. “The Commission will support Ireland in finding solutions addressing the specific challenges of Irish businesses” BUT “Contingency measures will not remedy delays that could have been avoided by preparedness measures and timely action by the relevant stakeholders.”
If you have any questions or need help please get in touch with Brian Daly, head of our Brexit Response Team. We look forward to hearing from you.
It is important to note that the stated position of the European Commission with regard to a No Deal Brexit has not changed.
“The Commission will support Ireland in finding solutions addressing the specific challenges of Irish businesses” BUT “Contingency measures will not remedy delays that could have been avoided by preparedness measures and timely action by the relevant stakeholders.”
In this context, we recommend that businesses prepare now, in so far as is possible, for a No Deal Brexit on 31 October 2019.
Brexit Preparedness Framework
We recommend that businesses use the following framework in reviewing the adequacy of Brexit planning:
