After much deliberation and discussion, the system was shocked when Brexit finally happened. As expected, business leaders had many questions: How is Brexit affecting small businesses ? What does the future of trade look like with our near neighbours? What rules should I follow? As the date drew closer and questions remained unanswered, the public needed time to accept the new changes, and then the pandemic hit. 5.94 million small and medium-sized businesses operate in the UK . It was therefore not surprising that the impact of Brexit on businesses was intense. Once the UK finally left on January 31, 2020, trade with Europe changed forever. Before Brexit, trading was a simple process.
Customs carried out few checks and very few documents were required when importing. Since then, importing has been a phone number list whole different game; taxes soared and imports fell by 40% . Not only that, but the price of importing goods into the UK has skyrocketed. For example, containers to Felixstowe from Shanghai used to cost around $2,000, now they cost around $11,000. That 's a 450% increase ! The cost of importing has reached an exorbitant amount; therefore, UK businesses will need to reconsider if the process is worth it! The impact of Brexit on business will continue to unfold.
Consequently, more and more companies are trying to keep a large part of their operations in the UK. Impact of the Brexit pandemic Courtesy of YouGov Tariffs after Brexit Prior to Brexit, all goods entering or leaving the UK were subject to a VAT system. Trading was very easy, as it worked like a single market. The trucks went to France, collected their goods and returned home. Today, trucks are stuck at borders for days because of paperwork. Therefore, the impact of Brexit on business means that importing and exporting requires you to understand the VAT requirements .