According to a poll conducted by the Institute of Chartered Accountants of Scotland, 4 out of 5 SMEs are not optimistic surrounding the future of the UK economy going forward. In the light of the fears surrounding the vote to leave the EU SMEs are bracing themselves for an uncertain economic future. Growing numbers of company directors are having to contact solicitors as they seek answers and legal teams are drawing up tentative agreements set to commence once the Brexit negotiations are finalised. In addition to the costly potential change in legal structure there are two key concerns faced by businesses;
- The value of the pound continues to fall.
If this continues many economists fear that this may lead to a recession greater than that of 2007. It was anticipated that such massive upheaval would have an effect but there is no logical reason for such a swift fall.
- Concerns over VAT and Import Taxes.
Before the vote, SMEs knew what they were required to pay in VAT and import taxes on goods from the EU did not apply due to prevailing internal trade agreements between member nations. At the moment, no one is sure of how such things will be dealt with in the future.
At this stage, much of what the future holds is still conjecture. Any business with concerns of what the future might hold should contact their professional advisers for advice. Should you have any concerns about the future for your business, one of our experienced practitioners would be more than happy to arrange a meeting – initially free of charge. To take advantage of our services, please contact us.