With the Unstable economic climate in the UK following the referendum that voted 51%for and 48% against Britain leaving the European Union, the future for small, medium and even large-scale businesses may no longer be business as usual
March 2019 will signal the end of the UK being part of the EU and a lot of changes are certain to occur.
These changes may be immediate or gradual depending on whether Britain is able to negotiate a deal, or if the current impasse ends at a no deal agreement with the EU. Changes to the UK legislation will most likely impact the way businesses are run, changes in immigration laws, for instance, may see them becoming stricter at the borders to other EU countries; trade across the border could also be radically affected by possible Increase in tariffs large-scale international businesses in the UK are already thinking of relocating outside to other EU countries so their businesses can thrive post Brexit
What is the impact of these changes in the economy on independent UK contractors both within and outside the Country
UK contractors based in the UK and other small to medium businesses, within the country, may not witness significant changes to their business operations. However, for UK contractors working in the EU countries, post-Brexit will have a foreseeable impact on their businesses, as the possible changes to legislation involving tax, tariff and immigration laws may make increase the cost of doing business for them. We may begin to witness an exodus of talent from the diaspora as happened in other countries like China and what this will mean is that the UK labour market will likely be affected by the post-Brexit changes.
As an IT contractor bringing your business back to the UK, what do you need to know, to thrive the post Brexit economy?
There will definitely be a need for your expertise as the change in legislation will involve the use of IT technology with a lot of companies preferring to use independent contractors rather than permanent staff while there is still uncertainty in the business climate.
However, you are still bound to be in a highly competitive market as the prime minister recently announced that the migration laws for skilled workers into the UK will not be impacted by this secession so you will need to up your game, offering only the best in services to your clients. You also need to start thinking of innovative methods to get more business as well as retain existing clients.
You need to be aware of the UK Criminal Finances Act which introduced a new clause that makes the facilitation of tax evasion by association, anywhere it is illegal, a criminal offense .what this means is that as a contractor, you and the client you work for are liable should you choose less expensive tax evasive means to beat down your prices in a bid to retain your market share whether this is done by employing services outside the UK, as long as tax evasion is illegal in that country .
You will also need to get a professional indemnity insurance to protect yourself in the event of lawsuits from your clients. This policy offers you certainty in the event that you are sued for errors mistakes and negligence on your part. In an economy such as is expected following Brexit, the relationship between customers and businesses could become fractious as people look for justification for every penny spent. This could mean lawsuits for situations that would have been ignored in the past.