On 23 June 2016, the UK public spoke and decided to take the country out of the EU. As the UK begins the process of leaving many businesses will be wondering what is around the corner.
Prime Minister, Theresa May, has reiterated that she does not intend to invoke Article 50 of the Lisbon Treaty, which formally triggers the commencement of the process, until the start of 2017 at the earliest. This means that the UK is highly unlikely to leave the EU until at least 2019.
The final settlement may take longer, depending on whether the other 27 member states in the EU agree to extend the deadline.
In the meantime, following the resignation of George Osborne and the appointment of Philip Hammond as Chancellor, the threatened emergency Budget will not now take place, with the Treasury instead gearing up for an autumn statement later in the year.
Mark Hildred, Moore Thompson’s managing partner, said: “It is understandable that there is a mood of uncertainty, which is inevitable given the enormity of the decision to leave the EU.
“Mitigating the uncertainty and risk for potential investors is crucial to minimising any negative impact on the UK economy and businesses, which is why the Treasury and the Bank of England are currently monitoring the situation and have pledged they will do their best to prevent an economic slowdown.
“At a more local level, businesses will need to decide how they wish to proceed during this period. There are so many unknown factors at present and business owners would be wise to take stock and pause, rather than make knee-jerk reactions, which they may later regret.
Whilst some businesses are happy to use accountants solely for routine accounts and tax compliance work, many of our clients use us as a sounding board to discuss current challenges, future plans, and how they may achieve them.
Changes, when they come, will happen at a fast pace and it is vital that all businesses surround themselves with professional advisers who can help them navigate, take advantage of, and deal with opportunities and threats as they arise.”