Bank of England Governor's warning should be wake-up call, warns RSM

Today's warning from the Bank of England Governor that there may be 150,000 businesses who are unprepared for a no deal exit should act as a wake-up call, warns RSM.

Commenting on the Governor's warning, Brad Ashton, international trade partner at RSM said: 

'The Governor is right to sound the alarm over the lack of business preparedness for a no deal outcome.

'Around 240,000 EU-only UK trading businesses will require a EORI (Economic Operator Registration and Identification) registration number from HMRC in order to make customs declarations in the event of a no deal Brexit. But there are clearly tens of thousands of small and medium sized businesses that are unprepared.

'For some businesses that are already VAT registered the process for obtaining an EORI can be straightforward. However, for non-VAT registered businesses the process is more complex and time consuming.

'Having already passed one Brexit deadline, there is a danger that a 'cry wolf' mentality might be lulling trading businesses into a false sense of security. Apathy or ignorance may also be playing a role. Whatever the reason, the Government must ramp up its communication with affected businesses to ensure that they can continue to trade with their EU customers and suppliers in the event of a no deal.'

Brexit - time to plan

There is no doubt that Brexit will have far-reaching impacts, with reverberations felt across every sector. Many in the business world will understandably be concerned.

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