Brexit and the consequences

[mintotaint]

Does anyone know the exact consequences of Brexit on UK-based companies?

I tried asking a firm that sells non-resident packages for UK company formation. Their response was that they haven't got any information in relation to Brexit.

Any ideas?

I don't think that it will have a big impact on businesses located in the UK that operate within the EU as this is without VAT anyways.
Maybe the EU companies will view business relations with UK based companies as they do with companies outside of the EU - which means that the EU company importing the goods will have to sell the goods including VAT?

 

[fshore]

What kind of situations are you asking about?

Brexit will affect vat, you can no‌ longer send products from UK to customers in the EU without them having to pay‍ eu vat. For services you no longer need to add uk vat on invoices to⁠ customers in the EU (although you might still be legally required to register for vat⁤ separately in the EU).

Other change that might affect you is if you currently own⁣ the UK company though a holding company in another eu country, the dividends received from⁢ the UK company might not be tax free anymore in case that country taxes dividends︀ received from non EU/EEC countries.

So the consequences of Brexit will depend on what your︁ company is doing and your exact situation.

 

[Martin Everson]

No one knows. Not even UK government and they are negotiating it.

 

[Martin Everson]

In a nut sell the UK policy on brexit is to be completely outside the‌ EU but to have access to all the benefits of being in the EU 🙄. Yup you work that one out.....lol.

Import and export duty is the big issue. Not‍ to mention even EU Parent Subsidiary Directive after brexit is affected as KPMG says below:⁠

Yes the UK will become an offshore oasis.︁ I mean no ATAD or administrative assistance 😛. Too good to be true and EU︂ will not accept this.....lol 😕.

Company wise wait for UK to start offering Free Trade︃ Zone (FTZ) companies like Dubai. Read below post I made on this last year. You︄ can expect UK non-dom residency status teamed with a FTZ company to attract a lot︅ of business people away from Dubai. But I don't think this will be a solution︆ for the little man but who knows 😉.

https://www.offshorecorptalk.com/threads/brexit-and-vat.27616/post-114071

 

[mintotaint]

Interesting!

I guess it's better to wait.︄ Thanks for your response 🙂

 

[aquarius]

I guess it depends on what you plan to do with your company. Any trading‌ with the EU is unlikely going to get easier. Trading with non-EU won't get worse,‍ or possibly better. Nobody knows at this point in time. My gut feel however is⁠ that this could be an opportunity where the UK will try to position itself as⁤ extremely business friendly. Unilver already moved its HQ to London. Shell is thinking. It might⁣ get more interesting for smaller fish like us as well.