by Siobhán Maguire
Business Post, Importance of British Irish Trade
Published 16 February 2020
Whether you are a sole trader, an SME or a multinational company, now is the time to ensure your business can withstand all potential outcomes from Brexit. That’s according to David Gleeson, Managing Partner at RBK Chartered Accountants.
RBK, who has provided accounting, audit and taxation services to domestic and overseas businesses in Ireland for over 60 years, is urging clients to prepare for all eventualities when Brexit’s transition period concludes at the end of the year.
Gleeson said that while nothing is guaranteed in how negotiations regarding a free trade agreement are concerned, change is on the horizon.
“The best outcome is that a free trade agreement is reached by December but one thing for certain is that there is going to be change and we need to be ready for it,” he said. “There may be disruptions to supply chains, but when change happens it also gives you new opportunities in the marketplace.
“What we say to our clients is that they should be carrying out a risk assessment of their business and their customers and suppliers. They need to be thinking of alternatives to put in place in relation to how they get their goods and how they can continue with their trade. Looking at alternative markets is not easily done but you must look at new suppliers and new places where materials can be sourced so you are prepared and less exposed to Sterling.”
Gleeson said the UK’s budget next month will be one of interest where tax rates are concerned. This, on top of trade changes could make for a difficult business backdrop for Irish exporters.
“This is why businesses need to look at practical options rather than just talking about it,” he said. “The advice is the same in relation to being Brexit-ready, but you do need specific plans now. If you are a business located in Ireland and trading with European countries via the UK, you need to figure out how you can get your goods to those same European locations in the same time it takes now.”
To be ratified by the European Parliament before the end of the year, any agreement reached in relation to Brexit would need to be finalised by November. If agreement cannot be reached, there is still the risk of a hard Brexit at the end of the transition period. In effect, this would mean that frictionless trade with the UK would end on 31 December 2020.
So, what does this mean for businesses in Ireland? Gleeson said a seamless transition, while the ideal scenario for Irish businesses, is uncertain.
“For now, we still do not know what our future trading relationship with the UK will be,” he said. “In a best-case scenario, if a free trade agreement is reached, there may be a relatively seamless transition to post-Brexit trading. However, given the tight timeframe, and the opening positions of the negotiating parties, it is prudent to anticipate significant change ahead from as early as 1 January 2021. Even if you are not directly importing from or exporting to the UK, this is likely to affect you in many different ways so it is vital to ensure that you fully understand the impact on your supply chain, operations and trade, and plan accordingly.
“Brexit could affect your business in a number of different ways. You may not be importing from or exporting directly to the UK but one of your suppliers may be, and under EU law businesses have different responsibilities depending on where they are situated in the supply chain. In addition, your business may experience a reduction in turnover or cashflow as a result of Brexit. Therefore, you need to anticipate how Brexit will impact your business and plan for it accordingly.”
RBK is the largest independently branded accounting firm in Ireland providing audit, accounting, taxation and business advisory services to domestic and overseas individuals and companies. Offices in Athlone, Roscommon and Dublin, make the firm accessible nationwide.
Gleeson said RBK business has continued to excel with a noted 10-15% increase in growth in recent years as the country recovered from the recession. Business has diversified also with the firm expanding its range of services as well as keeping clients briefed and informed on potential global financial issues including Brexit, which is a proactive area of their advisory business.
“Traditionally, we were tax and audit and accounts orientated, but we are now also very strong on business advisory including corporate finance, transitioning of businesses, Human Resources, technology and payroll. We value our clients and their needs and take pride in our versatility and expertise and we are here to help advise on Brexit.”
by Siobhán Maguire
Business Post, Importance of British Irish Trade
Published 16 February 2020
