The FSB suggests that a variety of internal and external threats could significantly rock the boat for many small UK firms. Some of the most common risks to businesses include customers failing to pay for goods or services, and the loss of key members of staff. However, a number of other risks are identified, such as IT problems, cybercrime, severe weather, transport issues, and even terrorism.
At present, some 65% of small businesses don’t have any plans in place to deal with disruption to the operation of their business or to their supply chains. Clearly, it’s an area with which businesses looking to plan for a post-Brexit future will have to engage as a matter of priority.
As a ‘no deal’ Brexit inches closer, the CBI warn that the impacts of a no deal will be vast and will impact every region in the UK. Their interactive map shows the business and economic impacts of a ‘no deal’ Brexit in each region of the UK.
The CBI suggests that the manufacturing industry, which is the East Midlands’ largest sector, would be particularly exposed to the risk of rising tariffs and other trade costs if we were to face a ‘no deal’ Brexit. Agri-food businesses, which makes up a large part of the East Midlands manufacturing sector are likely to be particularly impacted by rising costs.
Those who export goods are also likely to face difficulties trading with the EU, along with increased costs.
Accountancy Age recently reported that only 57% of businesses who must comply are ready for the forthcoming Making Tax Digital deadline.
Businesses who are VAT registered and have a taxable turnover above the VAT threshold – currently £85,000 – must be ready for Making Tax Digital by 1 April 2019.
Whilst there is a soft landing period of a year, during which firms will not be fined if they don’t comply in time, it’s important that business get themselves prepared to ensure they are able to provide digital records to HMRC.
Our Making Tax Digital resources provide useful guidance on how you can get prepared.
In order to minimise the impacts of any disruptions, it’s important that businesses plan ahead and consider how they would deal with any issues they may face. Thinking strategically is key. Things to consider include:
Above all, taking a proactive approach to ensuring you’re aware and prepared for potential business disruption is the key to being able to respond effectively and efficiently, and ultimately allowing your business to be resilient.