Vote Leave Result: What Can #SMEs Expect?

As part of its commitment to the small and medium-sized enterprise (SME) business community, the UK200Grouplaunched its Campaign for Clarity ahead of the EU referendum.

The UK200Group asked its members and their clients to contribute their most important business questions to a document that was then submitted to Vote Leave. The answers were received on May 12 2016 and are documented in the report.

The UK200Group, established in 1986, represents a significant group of trusted, quality-assured business advisers – chartered accountants and lawyers – who have over 150,000 SME clients in total. As such, the UK200Group acts as the voice for 1,500 charities, over 10% of all registered academies, more than 3,700 farms, 800 healthcare businesses and over 500 property and construction professionals.

The UK200Group is impartial in the EU referendum debate and seeks only to provide clarity to its members on issues that will affect them. As such, the following answers are provided verbatim from Vote Leave and are combined for the first time in this document.

Now that the UK has voted to leave the EU, it is useful to review Vote Leave’s answers to the key business questions posed by SME owners, which may hold some clues as to what the future may hold.

 

Employment

SME Question:
Many SMEs cannot find the skills they need to do the work they have, so free movement of people is important. How will SMEs’ ability to find and retain the right people be affected? This applies across the board, from minimum wage workers to skilled professionals.

Vote Leave Answer:
After we Vote Leave, the UK Government could introduce an immigration system that is fair and works for the UK’s economic interests. The EU’s immigration system is immoral, expensive and out of control. EU law demands that the UK has an open door to European countries, while simultaneously stopping highly skilled people from outside the EU coming to the UK to contribute. This has resulted in large numbers of people from across Europe coming to our country.

SME Question:
There is enough red tape in operating a small limited company – will leaving the EU help or hinder this business model?

Vote Leave Answer:
After we Vote Leave, our VAT rules would no longer be determined by EU law. The Government accepts that VAT rules for cross-border trade ‘can be complex and confusing’ and that ‘UK businesses also experience delays in the processing of cross-border VAT refunds in some EU Member States’. The annual cost of completing VAT declarations in the EU is estimated to be €40 billion (BIS, February 2014).

Outside the EU’s common system of VAT, we could simplify VAT rules substantially. After 40 years of membership, only around 6% of British companies export to the EU, but 100% are caught by EU red tape and have to comply with the full burden of EU regulation (Business for Britain, January 2014). This is damaging. If we take back control we can run our economy in the interests of millions of small businesses and entrepreneurs.

 

These are not the views of Asian Restaurateur or any of it’s employees.

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