Small and medium sized companies are currently facing the twin challenges of Brexit and the pandemic, something not lost on analysts.
And even though the Government have recognised the effect of the latter with a raft of financial measures, some critics insist they do not appear to have reacted to a distortion in the market caused by the former, that is affecting one of the UK’s most important sectors.
The MD of UK Business Amaiz, the business banking app, Steve Taklalsingh has called on ministers to address a distortion created by Brexit, insisting: “We urge the Government to focus on resolving and ensuring clarity on the sectors that have the most impact on the UK economy, particularly the service sector and especially financial services.
“What’s most unfair, about the current situation, is that EU FinTech companies can operate in the UK, but without e-passporting, UK companies cannot now operate in the EU. We can see challenger banks based in the EU, particularly in Amsterdam and Germany, eyeing up the UK market already.
“Financial Services is 12 per cent of UK’s GDP and our vibrant start-ups are a key part of that, so it really can’t be ignored like it has been.”
Last month, Amaiz published a report on the readiness of SMEs to face the blizzard of new import and export procedures, customs duties, import VAT, standards, data regulations, financial services arrangements, and a host of other changes.
The report, Brexit Brink: Are British SMEs about to fall off the edge of Europe – or building new bridges? is based on a survey of SMEs across the UK and highlights their main concerns as the end of the transition looms.
But many other questions remain; those that affect the legal, financial, operational and technical arms of many businesses. In an attempt to answer some of them, below are contributions from Anne Davis of The Institute of Financial Accountants, Jim Winters, Barclays Head of Fraud, lawyer Joanne Bone, partner at Irwin Mitchel, and SmartSearch CEO John Dobson.
How licensing exemptions affect many businesses across different jurisdictions
Trade and Cooperation Agreement’s “bridging period” explained
Four ways SMEs can protect their businesses against opportunist fraudsters
The perils of ignoring European Union money laundering directives. See also: