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How will Brexit Affect my Business in 2021?

Since what was first known as Brexit back in 2015, discussions have been had over how Brexit will affect UK businesses. The departure of the UK from the European Union became official at the start of 2021 after a trade deal was agreed in December 2020.

A little under 52% of the UK population voted for the UK to leave the EU. Many looked forward to the prospect of an independent nation, with many left unaware of what was in store.

Now Brexit is no longer a discussion. It’s a reality for all UK businesses, and the impact is in the here and now. The focus is now on “how will Brexit affect my business in 2021”? The truth is, it will affect all businesses, and it’s essential to understand the effects.

Which Industries Are Affected By Brexit?

Every single industry is affected by Brexit. There are potential impacts in all areas including economic and manpower. Naturally, some businesses will be impacted more than others, like financial services. However, those that trade internationally will be the greatest affected.

Businesses that rely on European suppliers or customers will be affected by the change in the law. As will international trade due to the loss of the EU’s free trade arrangements.

Key Brexit Dates

Now that the UK has formally left the EU, there are some important future dates to be aware of. At the moment these dates are guidelines and are not necessarily set in stone, but it’s essential to be aware of them.

What Are The Main Issues For Businesses?

The way Brexit affects businesses will be different. Each company will face challenges due to the UK leaving the EU. However, there are some main issues that all businesses will need to address.

As the UK parts ways from the EU, the regulatory framework will need to be reworked, and that poses a challenge in itself. Businesses will be affected by Brexit straight away due to the change in the law. EU law will need to be transformed into UK law, causing businesses to try and navigate challenges like the way they operate, employment contracts, and so on.

How Brexit Has Already Affected Some Businesses

While we are still only a couple of months into the UK leaving the EU, the effects of Brexit on businesses have already been seen. Let’s take a look at some of the effects in action.

UK Websites Losing .EU Domain Access

Over 81,000 .eu website domains have been suspended. UK residents are no longer permitted to use the domain. The website Leave.eu had to change ownership to a non-UK resident in order to stay in business.

Food Supply In Northern Ireland

The Good Friday Agreement banned the introduction of border checks between Northern Ireland and the Republic of Ireland. Northern Ireland remains part of the single market, meaning that goods traded between Great Britain and Northern Ireland must undergo custom checks.

In Northern Ireland, supermarkets saw empty shelves as food supplies were slowed down. It’s been dumbed down as “teething issues“, but many supermarket chains believe the situation will likely get worse.

Universities

Universities across the UK tend to attract a lot of EU students. It’s estimated that in 2021, Universities will attract 35,000 fewer EU students. This will result in a loss of £62.5 million per year in tuition fees.

A Change In Life

Brexit has undoubtedly turned many businesses upside down. However, there is no looking back, with the only way being forward and a time to reflect and rebuild.

For all businesses, complying with rules and regulations is the easiest way to move forward. Companies will need to maintain a duty of care and be kept in the know, adapting to change in order to promote better business in the UK.

Of course, many financial and legal issues will arise. However, it’s important for businesses to understand the changes and seek help if necessary.

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