Brexit Fallout - Change Will Do You No Good

Issue 18

The mass panic may be settling down somewhat, and the naysayers demanding another referendum have been told that 'Brexit means Brexit', but the uncertainty thrown up by the out vote in June seemingly shows no sign of slowing down.

What the exit from the European Union, which Britain has been a member since 1973, means for a number of business sectors remains to be seen, but many are suggesting that multiple changes in laws imposed by Brussels may change and accountancy is no different here.

VAT, pensions and a number of policy changes have all been rumoured by online sources, however a story from the International Business Times raised an interesting point what if no changes were made at all?

The article states that accounting watchdogs “have urged the Government to ensure the UK retains global book-keeping rules”, in short then everything changes but nothing.

But why the insistence on remaining steadfast in the EU rules? Well, according to the International Accounting Standards Board, a change in rules could do more harm than good, with a risk of “serious implications.”

At current, the UK operates under the same rules as the rest of the EU that is the international accounting standards. However with the Brexit, these could be liable to change, and as the UK will no longer be a member, we are able to change our laws and regulations.

But consider the effects of any changes to any dealings with the remaining EU nations will any renewed laws clash with the existing EU rules, will they make it more difficult to do business with EU accountants, or will the EU flat out refuse to deal with the UK?

The only certainty at the moment; is uncertainty, but what is guaranteed is an interesting few years as we adapt and gear up for leaving.

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