Profitability & Cashflow- The Keys to a Successful Business

Brexit – This is not like Y2k

For many business owners and managers not yet directly impacted by Brexit it might feel just like a migraine that’s always there.  Not too painful yet and you assume it’ll pass in time without causing you too much distress.

Unfortunately, that’s unlikely.   This is not like Y2K.  Remember that?  For those who weren’t around in late 1999 it was when we were told that unless all computer and IT systems were upgraded critical pieces of everyday technology could crash with disastrous consequences.  Thankfully this didn’t happen and many business people felt a bit misled by having to spend money, possibly unnecessarily on upgrading systems.

Brexit at this stage poses real threats and serious cost increases to many Irish businesses.  Potential blockages and inevitable delays in materials being shipped from EU countries through the UK will be one such consequence.

Some pertinent points that might affect your business:

  • All Government departments are advising businesses they need to prepare for a hard Brexit.
  • 80% of goods that leave Ireland for continental Europe transit through the UK.
  • Customs declarations handled by the Irish customs would be expected to increase by a factor of 15 thereby resulting in increased delays.
  • In the UK HMRC does not yet have the necessary funding and resources to produce the infrastructure that will be required to facilitate Customs processes post-Brexit.
  • The automatic right to send a truck from the UK to the EU will end upon Brexit.
  • There will be a need to agree to continue to recognise the licences and qualifications of the truck drivers between the UK and EU.
  • How will the UK impose Customs tariffs and border checks on freight flows from the Continent and Ireland?  Disruption to imports will be felt far quicker by businesses and consumers than will a disruption to exports.
  • An additional two minutes in clearance times at Dover will create a motorway queue 17 miles long,

But, unlike Y2K help is available in the form of a Strategic Plan to help businesses likely to be affected by Brexit.  This is in the form of a 50% payment to assess the impact and draw up contingency plans to help businesses mitigate the worst effects of Brexit.

Contact Sean Donnelly