4 Ways Brexit Will Impact on UK Tax and Accountancy

Brexit Article

Brexit impact has been a hot topic of debate in our offices over the last several months. We have been asking what effect, if any, that Brexit will have on us as professional accountants and tax advisers, as well as the effects that our clients may feel. With the pound having already hit all-time lows and a great deal of uncertainty about the future for everyone, it’s time to ask what your accountant can do for you.

These are some of the points we have been looking at:

  • Advisory service providers will need to be ready to offer guidance through changes.
  • Corporation tax will become more regulated by the UK government.
  • VAT will be affected by changes such as the Flat Rate Scheme.
  • Accounting and the law will be impacted upon by issues including FRS.

What effect, if any, will Brexit have on professional accountants and tax advisers?

Brexit Impact – your own business finances could be affected by Brexit in the following 4 ways:

1. Advisory Services

Moving forwards, businesses will need advisers who can guide them through the raft of changes that are likely to be made to all aspects of taxation and accountancy as a result of brexit impact. You will see as you read further on that many of the current regulations and laws surrounding our profession are either EU directives or are in some way or another derived from the principles that the EU set out. As such, it is likely that the UK government will look to impose a wide range of changes to suit the needs of what is likely to be a volatile economy.

2. Corporation Tax

An area that is highly likely to change, Corporation Tax’s legal requirements will be regulated more freely by the UK government in the months and years to come. For larger businesses (especially those who have operations and trade out with the UK) double taxation and high rates of tax may prove to be the biggest issues. For those companies operating solely within the UK, there are likely to be rises in the amount of tax that you pay. We can advise you on the most effective ways to deal with the changes that will likely arise.

3. VAT

VAT was initially a European Union idea that was adopted by the UK government. Aside from potential changes to the rate of VAT (read more about upcoming changes to Flat Rate scheme here), the UK government is unlikely to scrap VAT with it being a massive source of revenue for the national economy. With changes in VAT, come changes in accountancy practices. It will be important for businesses, small and large alike, to keep up to date with any variations in the VAT requirements.

4. Accounting and the law

The way that your financial reports are created is experiencing great changes at the moment with the introduction of FRS. In the future, there will undoubtedly be further changes as the UK seeks to remove EU directives that are less beneficial to UK businesses and to create new ones which benefit the government’s needs. It remains to be seen what new regulations will be enforced and how these will affect the local economies.

Corporation tax’s legal requirements will be regulated more freely by the UK government in the months and years to come

We don’t just raise the bar in terms of Accountancy and Tax Services – we also provide ongoing support so that you and your business can not only survive Brexit impact, but continue to grow in the ever changing economy. With an experienced team of finance professionals from a variety of backgrounds, Steedman and Company is ready to deal with any eventuality. Contact us today for a free consultation.

Ricky Steedman

Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.

His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.

Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.

Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.