Is Brexit Having a Damaging Impact on your Profit Margin? – Solutions Considered
As an Irish based accountancy and business advisory firm, Roberts Nathan assists frustrated UK and Irish business owners who are confused, worried, and uncertain where to turn to in a bid to maintain their turnover and profitability following Brexit.
Main Challenges of Brexit
Companies in the UK have been approaching us to help them find a way forward when they experience one or all of the following challenges:
- Extra Brexit-related charges for exporting into the EU means your profit margins are eroded and now it’s far less viable to continue to trade in the EU.
- Your customers in Europe are being asked by couriers to pay VAT upfront on the goods being shipped to them, resulting in those customers becoming disgruntled and ultimately sourcing the same product elsewhere.
- Delays at ports which means your customers are not getting their goods on time when needed.
- More forms and paperwork resulting in more admin and headaches. Many businesses had to hire more staff to handle the extra admin – meaning more costs.
Options Available to Overcome the Challenges
Faced with the above challenges, our UK clients are left with only three options:
1. Continue to export goods to the EU as before Brexit
Bite the bullet and pay the VAT and other charges yourself – instead of your customer paying these. For many, this isn’t financially viable as profit margins will be eroded significantly.
2. Stop exporting to the EU altogether
The majority of clients have told us that without ongoing access to the EU markets, as has been the case for many decades, their businesses will be compromised and face the risk of closure.
3. There is a final option – a solution which we recommend to many of our UK clients.
We can set up and register your business here in Ireland through a subsidiary company, wholly owned by its UK parent.
In circumstances where products are imported from outside the EU, goods can be shipped from Ireland to your EU customers, helping you to avoid various Brexit related charges. Your customers will receive their goods on time. We can assist you in dealing with the VAT matters arising in Ireland.
This solution will allow you to keep running your business at the required profit margin you need while avoiding the Brexit challenges faced above.
If you would like to explore this valuable solution further, please contact Peter Roberts or Tomas O’Leary, who would be very pleased to assist you in considering this worthwhile option.
Peter Roberts: email@example.com
Tomas O’Leary: firstname.lastname@example.org