Roger Margand, Partner at Spire Solicitors LLP, discusses some Commercial considerations with Brexit.
The business press (and indeed most media) have been awash with predictions about what will happen once Brexit is formally triggered.
What most people are forgetting is that the formal process from the EU has not yet started and when it does, there will be lengthy exit negotiations. It is unlikely that there will be immediate changes in the law but it is important for all businesses to plan ahead for when those negotiations are concluded.
Specific issues that UK businesses should be thinking about need to include:
- VAT compliance- given the present system of VAT recovery and compliance would be likely to change with an additional compliance cost;
- Intellectual property – at the moment trade marks can be obtained through the use of the registered “Community Design“ and ”European Union Trade” which has had EU wide effect, how this will work after Brexit is uncertain; and
- Debt collection – at the moment there is a simplified procedure for enforcement of debts across the EU. This may or may not be preserved.
The important takeaway from this piece is that it is unlikely there will be anything substantial for the next two years but that Brexit will have implications for future plans and business structures (whether the European Company in the format used by UK businesses will continue is also a moot point) and it will be important for businesses to consider their options particularly those that have business relations with entities in other EU countries.
Please feel free to contact Roger Margand (firstname.lastname@example.org) for any further details.