Blog How Will The Brexit Transitional Period Affect Businesses?

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How Will The Brexit Transitional Period Affect Businesses?

29th March is ‘Brexit Day’. From this date until 31stDecember 2020, there will be a transitional period as the UK finally moves out of the European Union.

With less than a year to go until the big date arrives, you’re likely wondering how the official arrival of Brexit will affect your company. Here, we explain how the leaving process will pan out, as well as how these changes will impact certain sectors.

Trade deals

Britain will continue to negotiate, sign and approve its own trade deals during the transitional period. This means that there won’t be major issues regarding supply chain disruption. The existing EU deals that are currently in place with other countries will also continue during this time.

Fishing industry

Whilst the UK won’t have a direct influence on the rules of the Common Fisheries Policy, it will essentially still be part of it. Britain will still have access to the shared EU economic zone, but after the transitional period it’s likely that UK fisherman will be required to annually negotiate their fishing rights in these areas.

Northern Ireland border

It’s been said that to avert a hard border with the Republic of Ireland, Northern Ireland will probably remain in parts of the single market and the custom union. However, debate is rife about whether this is viable as a long-term solution once the transitional period is over.

After the transitional period

The transitional period benefits businesses by giving them time to make necessary Brexit preparations. Tourism and international security measures won’t be affected during these months, either. 

Some companies, however, will need to use this time to make major adjustments. Coast-based businesses with strong links to the fishing industry, for example, are likely to be hit hard by new regulations, and need to make sure they’re ready for when Britain officially leaves the EU. 

The exact way in which trade will be affected after the transition period isn’t yet certain. Full market access, a bespoke free trade agreement, and adapting exiting models are all being touted as potential solutions. 

Prepare for Brexit with Bright Ideas Accountancy

Throughout the transitional period, you’ll want to ensure that you’re on top of your finances.

That’s where Bright Ideas Accountancy can assist. We’ll help you plan for Brexit and beyond by preparing annual accounts and offering real-time access to finances with Xero cloud accountancy software.

To discover more about how Bright Ideas can help your business, arrange a consultation by calling our team on 0161 669 4221, emailing info@biaccountancy.com, or filling in our online contact form. We’d love to hear from you.