Connect with us

Hi, what are you looking for?


Nearly half of UK SMEs have made no Brexit preparations


New research has revealed that nearly half of SMEs who import goods and services from the EU and two out of five SMEs who export to the EU have made no preparations for Brexit.

Tim Boag, group managing director, business finance, Aldermore said: “2020 has been an extremely difficult year for SMEs, as many have been profoundly impacted by the Covid-19 pandemic. With the Brexit transition period coming to an end on 31 December, businesses who trade with the EU now face a new set challenges, particularly if there is no-deal. Tariffs could be introduced on many imports and exports, which will have an impact on costs for businesses, and even if a trade deal is agreed there’s still likely to be significant changes to prepare for, such as additional checks and documentation on goods as required by both the UK and the EU.

“Our research reveals that many SMEs are generally unprepared for Brexit or are delaying plans to address the impact until after the end of the transition period. Whilst the delay in preparing for Brexit is understandable given the ongoing impact of the pandemic, the potential wide-ranging effects of Brexit on many businesses means it’s crucial that SMEs begin to take steps to prepare.

“Businesses should consult the Government’s guidance for SMEs post-Brexit and work out how VAT, tax and duty, and other regulatory changes will impact them and their supply chain.  Aldermore has created a Brexit hub with key information for businesses to help SMEs best prepare for the transition and the challenges and opportunities that lie ahead.”

Reliance on the European Union

The apparent lack of Brexit preparation among many UK SMEs is particularly concerning as for the average SME in the UK, nearly a third of their income is from business and customers in the EU.

Given this reliance, a quarter of SME owners think Brexit will worsen the economic difficulties caused by Covid-19. Meanwhile, one in six SMEs expect to experience disruption to their supply chain because of Brexit, with a further 15% anticipating a shortage of materials, goods, and services.

Preparations impacted by Covid-19

Nearly half of SME business owners say they have been so focused on trying to manage the impact of Covid-19, they have not had the chance to think about Brexit. Meanwhile, two out of five say they are trying not to think about Brexit and its impact until next year, after the end of the transition period.

Just 14% of those who export to the EU have consulted the Government’s guidance for small businesses post-Brexit and only 14% have checked how VAT changes will impact them. Furthermore, only one in six of those who import from the EU have checked the tax and duty for their goods, while only 13% have checked if any additional regulations are likely to be applied to the type of goods they import.

Low levels of preparation could be due to many SMEs feeling there is a lack of information available, and a further 40% say they are confused as to where to look for information on Brexit.

Long term impact

The majority of businesses are confident about their long-term survival, despite many being heavily reliant on the EU for trade and business income.

Businesses who expect that Brexit will decrease their monthly business income anticipate they could survive for three years on average on this reduced income.

Read more:
Nearly half of UK SMEs have made no Brexit preparations

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



By Chelsey Keith P. Ignacio Education can open the doors to abundant opportunities, from achieving one’s dream, helping the family, or even contributing to...


Sustainability has transcended trends and has become somewhat of an art form in itself. In business, it has now been refined to qualify as...


Intellicare believes that the way forward for healthcare is balancing high-touch and high-tech care. The disruption brought about by the global pandemic proved to...


The honest truth: No one came out of the COVID-19 pandemic in quite the same way. The pandemic was an isolating period of self-discovery,...


Ayala Museum and Globe bring a new cultural learning experience with the Globe Digital Gallery Ayala Museum, under the management of Ayala Foundation, Inc....


By Diego Gabriel C. Robles THE Philippine economy expanded by 7.4% in the second quarter — slower than expected — as rising inflation weighed...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.