How is Brexit affecting UK startups?

EU Treaties, free movement rights and the general principles of EU law no longer apply to UK businesses.

From paperwork to roaming charges, there are a number of new rules that startups in the UK need to be aware of when it comes to brexit.

A big one is that without the correct documentation UK nationals can no longer freely work and travel in the EU and will need to check EU country requirements and how long you can stay there with a visa or work permit. This may affect you if you have existing business locations in EU countries that you spend large proportions of time in.

Funding for Startups

The government is likely to want to invest more than ever in UK startups so investment schemes should continue to be protected. For those on SEIS and EIS schemes, there should be no cause for concern as they are supported by the UK government as opposed to the EU.

For more EIS and SEIS legal advice visit CrestLegal.com.

Data and GDPR

If data flows between the EU and from organisations abroad such as names and addresses, to provide goods or services, you should not see too much change at this stage.

The EU has adopted ‘adequacy decisions’ for the UK allowing the free flow of personal data from the EU/EEA to the UK.

Mobile roaming charges

UK citizens will need to check their company’s roaming charges before travelling to the EU. You may face roaming charges. There is however, a new mobile data charges law which prevents you being charged more than £45 and after that point you need to opt-in to spend more.

Checks and regulations

Business owners may have to deal with more rules and regulations such as Customs declarations when selling to the EU.

When exporting goods, you need to check duties and restrictions for your goods in the destination country, as well as checking if licences are required for any goods you are selling.

Employees

Depending on the size of your team and where they are originally from you’ll need to to consider the impact of brexit on your employees.

“Settled status” means that your employees are able to remain in the UK with the same rights as UK citizens, therefore they have a right to remain in the post brexit era. Employees who have resided for the past 5-years in the UK will be eligible for settled status and those that have lived here for less can apply for pre settled status.

The deadline for applying for settled status is the 30th of June 2021 so hurry! Employees can apply here

If hiring talent from the EU you should be aware of the points-based model. New recruits will need to meet certain criteria to be granted a visa. These include being able to speakEnglish to a required level and that they’ll be paid at least £25,600.

International trade

Businesses trading internationally will now need to make Customs declarations

UK Corporate entities

According to twobirds.com, UK companies reporting under EU International Accounting Standards will now need to report under the UK equivalent. UK companies with EEA parent companies may no longer have exemptions from filing individual and group accounts and may be required to include additional information in those accounts and EEA subsidiaries of UK companies may also lose applicable accounting exemptions.

Leave a Comment

Your email address will not be published.