How Brexit is affecting start-ups
As business owners will be well aware, the impact Brexit is having on British firms is huge. The legal issues brought about by our exit from the EU are complex and numerous, particularly for start-ups. Here are just a few problems entrepreneurs will need to overcome when it comes to ensuring their operations remain legal and efficient:
1. Employees must have settled status
If your employees are not UK citizens, they must register for settled status. Anyone who has been living in the UK for five years or longer can apply for settled status, while those who have been in the country for less than five years can apply for pre-settled status. This gives them a five year right to remain in the UK before they must apply for settled status. The deadline for applications for this programme is 30 June 2021.
If your start-up relies heavily on workers from the EU, it may be helpful to run training sessions on the necessary steps for making an application to remain in the UK.
2. Recruitment rules have changed
Thanks to the introduction of a new points-based immigration system, a person hoping to work in the UK must fulfil a number of stringent criteria, the details of which can be found on the Government website. Individuals must obtain 70 points to be awarded a visa and must have a job offer in place before they move to the UK. The changing rules could have a significant impact on start-ups in industries such as hospitality and construction due to rules surrounding income and qualifications.
In this way, some start-ups may need to start considering new ways of employee on-boarding and investing in automated service systems. It may also be necessary to apply for a sponsor license to make hiring new EU nationals simpler in future.
3. International movement of goods has become much more complicated
Great Britain has exited the EU customs union, meaning you will need to handle customs declarations if you move goods between Great Britain and EU countries. Fortunately, border controls are undergoing a phased rollout up to 1 July 2021 to give businesses time to submit customs declarations.
For small start-ups, it may be worth switching to a UK supplier if you rely on imports from EU countries. Indeed, this could reduce the likelihood of supply chain issues over the next few months, as well as saving you money in the long term.
4. Accessing capital could become more difficult
Brexit could cause cash flow issues thanks to issues such as exchange rate volatility, reduced consumer confidence, and the removal of the EU Parent-Subsidiary Directive and the EU Interest and Royalties Directive.
How Ruthberg LLC can help your start-up successfully navigate Brexit
As you can see from this small (and certainly not comprehensive list), Brexit has transformed the legal landscape for businesses across the UK. Navigating processes surrounding imports and exports is particularly complicated, throwing up a whole range of taxes and rules to comply with. Fortunately, Ruthberg LLC is here to take the headache out of Brexit. By enlisting the help of legal professionals, you can ensure that your start-up runs smoothly throughout this tricky transitional stage and remains untouched by legal problems, fines, or delays. Get in touch with us today to find out more.