Comprehensive Report: Brexit's Impact on UK Trading Businesses

This report examines the impact of Brexit on UK trading businesses, focusing on several key areas. The analysis begins with an overview of Brexit, highlighting its influence on business operations and the UK economy. It explores the effects on trade, including the shift from the EU's single market and the implications of new trade deals. The report also addresses the impact on taxation, such as potential changes in corporation tax and value-added tax policies. Furthermore, the report discusses the effects on worker policies and the overall trading environment. It concludes by summarizing the positive and negative effects of Brexit on the trading business sector, referencing various academic sources and reports.

ACADEMIC SKILL
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Table of Contents
essay.....................................................................................................................................................3
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Summary...............................................................................................................................................5
REFERENCES.....................................................................................................................................6
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ESSAY
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As per the scenario, it has been given that UK's withdrawal from the European union. By
this happing their has largely impacted on the entire procedure of business organisation. The
withdrawal of United kingdom from the European union is known as the Brexit. There has been
little attempts to quantity what an exit from the EU would do to the size of the UK economy, despite
the obvious pitfalls of trying to pout the figure on a hypothetical situation that has a number of
variables such as what sort of trade deals are negotiated post Brexit. In this project report, as a
manager of the trading company my focus on the topic is that what are the exact area which has
influenced by the Withdrawal of UK from European union. In this project report, the impact of
Brexit upon the trading business organisation in the UK has been addressed.
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As per the discussion it has been ascertained that there has largely influence of Brexit upon
the trading businesses in the United kingdom. In the project my tops is trading business, I will
analyse the impact of this Brexit on my trading business. all people who are involved in the
business enterprise has affected by the Brexit (Kreindler, Gilbert and Zimbron, 2016). There major
area which has affected by Britx re as follows-
 The biggest part of my business is exporting to the EU. Since the Brexit vote, trade has
carried on as normal , but it depends in Europe, not on domestic demand.
 The brexit decision essentially switches the UK from the latter option to the former. It cut
off access to the tariff free single market, but it also offers the UK enough flexibility to form
its own business friendly policies with trading nations (Ferraro, 2016).
 In the trading business organisation, the Brexit can largely affected on the procedure and
system of business enterprise. Official trade statics show that the European Union is the
destination for about half of all British good exports. The united kingdom trade freely with
because they have a free trade agreement with the European Union. These agreement means
that 63% of British goods exports are linked to European union membership (Crabb, 2016).
As per the discussion it has been shown that there are various area which will affected by the
Brexit. Many of the impact may positive and many of the impact may negative. The opportunity for
trading business by happening of Brexit is that all the momentum funds are positioned short the
pound against the dollar. All the risk parity funds are positioned towards mean reversion that is
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there will be volatility but it will come back. In addition to this membership in the European union
has obvious benefits from a free market perspective. It facilities a tremendous level of trade and
labour mobility, allowing resources and people to flow to more productive uses and generate new
wealth and prosperity.
The problem related to the Brexit is that the increasingly centralised, bureaucratic and
regulatory approach of the EU towards its member nation also provide serious drawbacks. The
brexit decision essentially switches the UK from the latter alternative to the former (MacDonald,
2016). It cuts off access to the tariff for single market, but it also offers the UK enough flexibility to
form its own business friendly policies wit trading nations.
As per the above discussion it can be said that in the trading business organisation, Brexit can
largely affected because the entire procedure of system can influence by its action. The withdrawal
of United kingdom from the European union is known as the Brexit. There has been little attempts
to quantity what an exit from the EU would do to the size of the UK economy, despite the obvious
pitfalls of trying to pout the figure on a hypothetical situation that has a number of variables such as
what sort of trade deals are negotiated post Brexit (Núñez Ferrer and Rinaldi, 2016). Further it can
be said that business organisation can largely positively and negatively affected.
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In this section my topic is taxation and under this project the impact of Brexit upon the
Taxation has been addressed. I defines that how tax policies are affected by taking the decision of
withdrawal from the European union in the business. Following are the area which affect by this
Brexit-
 Lower direct tax- As business hub UK losing its reputation, finance minister of the country
has pledged to decrease corporations tax to less than 15% from the current rates of 20%
giving business organisations extra pound necessary to invest in the business organisation
Growth.
 Higher indirect tax- Value added tax or tax that gets added to a product whatever value is
added to it, is a major contributor to the UK's revenue. The withdrawal of UK provides
Britain its price to vary its Value added tax. In the absence of made any fluctuation to the
present value added system, the country's government body develop a plan to mention more
products and services to the present list (Floridi, 2016).
 By withdrawal of UK from the European union, worker policies can prove to be sticky
wicket for the regulation system of the country. Brexit brought an end to the free flow of the
employees and workers of the European countries.
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As per the above discussion it has been concluded that the withdrawal of UK from the European
union has largely affected on the tax policy of the country. After this happening in the UK, minister
of country has pledged to overcome corporations tax to less then 15% from the current rate of 20%
so It can be said that this is the opportunity for business organisation in order to grow their business.
The UK ha been always a strong advocate of anti tax evasion policy (Nanfack, 2016). The existing
laws permit multinational companies to exploit the loopholes in the tax system to shift the profit
legally to low or tax jurisdiction. The authorities would like to tighten the noose around companies
carrying out business beyond UK borders.
SUMMARY
From this report it has been concluded that Brexit has largely affected the operations of
business organisation in positive and negative manner. Due to withdrawal of UK from European
union trading business organisation may beneficial in the tax policy. Finance minister of UK has
reduce the tax rate from the current rate (Brexit – what would happen if Britain left the EU?.2016).
The withdrawal of UK provides Britain its price to vary its Value added tax. In the absence of made
any fluctuation to the present value added system, the country's government body develop a plan to
mention more products and services to the present list. In addition to this trading business because
the trading links are bigger if company includes the countries that the united kingdom trades freely
with because they have free trade agreement with the Europe union. These agreement means that
63% of British goods exports are linked to Europe union membership.
UK should seek to move towards position of free trade on a global basis, rather than attempting to
obtain it through a series of bilateral arrangement with other or operating within the protected EU
customs union and single market.
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REFERENCES
Journal &Books
Kreindler, R., Gilbert, P. and Zimbron, R., 2016. Impact of Brexit on UK Competition Litigation
and Arbitration. Journal of International Arbitration.33(4). pp.521-540.
Ferraro, S., 2016. The Brexit's Impact on the World Economy.
Crabb, A., 2016. Wine export: Impact of the'Brexit'on Australian wine exports.Wine & Viticulture
Journal. 31(3). pp.73.
MacDonald, S., 2016. The impact of Brexit on the UK’s reputation, influence and soft
power. Cultural Trends. 25(4). pp.280-286.
Núñez Ferrer, J. and Rinaldi, D., 2016. The Impact of Brexit on the EU Budget: A non-catastrophic
event. CEPS Policy Brief No. 347. September 2016.
Floridi, L., 2016. Technology and Democracy: Three Lessons from Brexit.Philosophy &
Technology. 29(3). pp.189-193.
Nanfack, R.B., 2016. The European Labour Mobility.
Brexit – what would happen if Britain left the EU?.2016.[Online].Available
through:<https://www.theguardian.com/politics/2015/may/14/brexit-what-would-happen-if-
britain-left-eu-european-union-referendum-uk>.[Assessed on 8 December 2016]
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