The triggering of Article 50 last month was the first major step towards the UK’s departure from the European Union, sparking a two year period of negotiation.
Inevitably, there remains a great deal of uncertainty over the future relationship between the UK and EU members, including for companies in the Isle of Man which do business in Europe.
Grant Thornton UK, which launched a dedicated online ‘Brexit hub’ following last year’s referendum result, has issued advice to help businesses prepare for Brexit and beyond following the triggering of Article 50.
Michael Crowe, a director at Grant Thornton in the Isle of Man, said: ‘During the period of negotiation, the UK remains a full member of the EU, enjoying continued participation in the Single Market and remaining bound by the rules and obligations of membership. That means there is a two-year period of relative stability during which preparations for post-Brexit can be made.
‘To assist firms with that process now that Article 50 has been triggered, Grant Thornton UK has produced a simple three-point plan as a starting point for preparation, as well as a more detailed 12-page advice booklet which is available to download now. Both are available now within our Brexit hub, alongside further guidance and advice.’
Grant Thornton UK advises it is vital that the two-year negotiation period is used to prepare, so organisations can react quickly to the post-Brexit position, minimising risk and seizing opportunities.
Mr Crowe explained: ‘The three-point plan begins with measuring your exposure, which means understanding and mapping how your company interacts with the EU, and evaluating the impact leaving the EU will have. For instance, this means assessing the contact your business has with the EU through things like your people, supply chain and the regulatory influences and conducting scenario planning around them to determine the likely impact of leaving the EU.
‘Next is making your business “Brexit proof”. Once you have determined where and how your business is likely to be impacted the most, develop a transition plan to prepare, protect and hopefully reap the benefits of Brexit. This will allow you to minimise any current inefficiencies and explore alternative solutions to sourcing labour, such as developing your domestic talent. Communication is also critical when managing your business through transition; doing this effectively will help avoid your employees and stakeholders fearing the worst and offer reassurance.
‘Finally, you must prepare to capitalise on opportunities. To achieve growth during and after the UK’s departure from the EU, now is the ideal time to identify and capitalise on the opportunities it could present. This means re-imagining business models, optimising processes and controls, exploring new international markets and trade deals, and capitalising on new domestic opportunities.’
He concluded: ‘More detailed advice, including out downloadable booklet, is available from the Grant Thornton UK Brexit hub, which is a valuable tool for anyone with concerns about the impact, or an interest in the opportunities, presented by the UK leaving the EU. There are many firms here in the Island which trade with the UK and EU which could benefit from the guidance produced by Grant Thornton’s experts, so we’d invite them to visit the hub or get in touch if they would like further information.’
For more insight visit Grant Thornton’s Brexit hub at www.grantthornton.co.uk/brexit or call Grant Thornton Isle of Man on 639494.
Photo - Michael Crowe, Grant Thornton Isle of Man
