Gift Focus - May/Jun 2019 (Issue 113)

29 THE GA and, being based within Europe, customers might prefer to deal with a local company as opposed to a branch of a UK company. If the UK leaves without a deal, companies should give serious consideration to applying for an Economic Registration Identification Number (EORI); this will be a unique number that HM Revenue and Customs will use to identify you and your company and collect duty on your goods. Not applying for this in time could mean you risk delaying your goods and facing higher charges. It will be important for your business to check new tariffs that will be put into place. You can compare these on the government website, gov.uk, under “Brexit Guidance.” New tariffs were put into place on 13 th March, with little consultation with many UK businesses, and some of these could be damaging to all but the largest of companies who can absorb the costs elsewhere. Check to see which goods and items will be affected by these tariffs and whether this will affect your business. This will give you a chance to prepare for the future. The Giftware Association conducts a short members’ survey each year regarding business confidence, exports and imports and business investments. The results of this survey are taken to the Bank of England for the Genesis Initiative by The GA. The initiative was set up to support SMEs in gaining access to finance but now assists with all aspects of running an SME. The survey results painted a picture of an industry worried about the future. “Confidence significantly lower than the previous six months” achieved 71 per cent of the vote, and a similar result was found in business growth expectations in the next six months compared to the previous six months, with “lower expected business growth” receiving 54 per cent of the vote. Around 52 per cent of members surveyed expected the export environment to stay flat while in the transitions stage, where the government and the EU will (hopefully) be working towards a shared goal. The one opinion shared by the majority is that the cost of exports and business will rise – and the smaller the company, the more it will suffer from this. “Forward planning and financial knowledge are vital,” said Tom Cowen, vice president of European business development at Nationbuilder. “As always, it’s important to know your business inside out; if you don’t know your numbers, then you don’t know your business.” This should be a key part of any business regardless of Brexit but comes into play more than ever in the current climate. The shorter chain of command in SMEs can be advantageous as companies can make quicker decisions and think on their feet. If there are financial issues, companies should be able to easily turn around and find an alternative solution to business problems. The business lending market is the strongest it has been for a long time, with more options available to businesses than ever before. Rather than rely on high street banks, SMEs should look for alternatives, even if many grants could be lost with the UK’s departure. Capitalise on the strength of this market against the perceived uncertainty post-Brexit by planning, preparing and seeking a long-term finance partner. With time running out to explore your options, consult experts and find the right product to fits your needs. Businesses can then continue to deliver growth plans or ensure there is a reserve pot of money for peace of mind. The results from our genesis survey didn’t highlight any staffing concerns among our members, but some of the UK’s SMEs may experience challenges in the labour market with members of staff uncertain of their position post-Brexit. A recent study by the Association of Professional Staffing Companies (APSCo) reported that companies were finding it increasingly difficult to fill roles, with vacancies in finance and banking up 12 per cent and engineering and construction openings rising by 10 per cent. To meet new challenges, SMEs will need to review their workforces to ensure that they have the relevant skills. Companies that rely on European workforces will need to ensure that they have appropriate plans in place going forward to ensure that staffing needs are met. It is never too late to start preparing for staffing issues. With apprenticeships very much in the spotlight for the government and the media, businesses can take advantage of the new non-levy and levy contributions system. The system demands that if your payroll costs are £3million per year, the Government will fund 95 per cent of the cost of an apprenticeship and, in some circumstances, 100 per cent. Partnering with your local college or training provider could ensure the stability of your future workforce and guarantee trained employees for years to come. The Giftware Association will continue to help its members’ businesses throughout this tumultuous period through the expertise of its service providers. We will always strive to find an answer to your questions, and we will also share any news and updates regarding Brexit either on our blog or through dedicated emails. The government has also issued standard advice that can be found on the gov.uk website, which prepares UK businesses for the worst-case scenario of a no-deal Brexit. “If the UK leaves without a deal, companies should give serious consideration to applying for an Economic Registration Identif ication Number (EORI); this wil l be a unique number that HM Revenue and Customs wil l use to identify you and your company and col lect duty on your goods. Not applying for this in time could mean you risk delaying your goods and facing higher charges.” For more information, visit The GA’s website at www.ga-uk.org or the government’s advice page at euexit.campaign.gov.uk