The impact of Brexit


Unsurprisingly, half of UK respondents anticipate that Brexit will impact greatly or moderately on their organisation.

An SME manufacturer cited the main VAT challenge it faced as “international goods and service movements, especially post Brexit” whilst the tax manager of a diverse large business headquartered outside the EU also expressed concern about “Brexit uncertainty”.

By contrast, typically no more than one in five respondents from elsewhere in the EU had similar concerns, although some Irish respondents were almost as concerned by the impact of Brexit as their UK counterparts.

Extent to which UK businesses felt Brexit would affect their organisation and the likelihood they would be seeking external VAT advice.

  • Around 40% of UK respondents already consider that it is “very likely” or “quite likely” that they will have to take additional VAT advice to assist in managing Brexit
  • These results are not dependent on the size of organisation – they instead vary based on the sector/industry in which they operate. As might be expected, well over half of UK respondents who indicated that they supply or receive goods or services cross-border expect an even greater impact from Brexit on their organisation’s VAT position
  • Read our Brexit planning guide which analyses the tax and legal changes that arise according to six business scenarios.

We understand that many of these respondents represent businesses with EU VAT registrations (eg because they move goods around the EU, perform services in the EU, etc) and a notable minority are in the travel sector and potentially using the VAT Tour Operators’ Margin Scheme.

On that basis, we anticipate that many of those expecting to take additional VAT advice in the context of Brexit are referring to EU VAT advice rather exclusively to UK VAT advice.

Where next? A New Economy


Rapid developments in technology and regulation, the growth of populist politics, an uncertain relationship with the EU and opportunities for a whole raft of new trade deals across the globe means that many of the boundaries that once shaped the way organisations do business are changing or disappearing altogether.

Rapid developments in technology and regulation, the growth of populist politics, an uncertain relationship with the EU and opportunities for a whole raft of new trade deals across the globe means that many of the boundaries that once shaped the way organisations do business are changing or disappearing altogether.

At the same time, global high-profile scandals have left many people feeling alienated from – and frustrated with – business and other institutions. Globalisation has seen many winners but many losers too. Some have said the vote for Brexit was the first rebellion of a developed country against globalisation. Having been followed by similar electoral sentiment in the US elections then we can expect more surprising news to come in the years ahead.

All these changes pose some interesting questions. In simple terms, what should Britain’s post-Brexit economy look like?

A new economy is needed that is not over-reliant on any one sector or region but which makes the most of Britain’s talents, skills and entrepreneurialism across the entire country; an economy which is outward-looking and helps its home-grown businesses expand abroad.

We want to kick-start a conversation and hear what is needed for you, your business and the UK to thrive.

Find out more