The trade and security deal the UK Government struck with the EU is a bare-bones deal for tariff-free trade in goods. For many other business sectors that are not covered by the trade deal it means a no-deal outcome creating significant frictions and less EU market access from 1 January. Below we explore what it means for the Business & Leisure Travel industry.
Again, a weaker Sterling will help the British tourism industry. Employers will need to spend more money on administering business travel for their staff.
With the UK continuing to be perceived as a catalyst for growth, the ability to travel and have access to clients in-country remains a key concern. Although businesses are now engaging heavily through virtual technologies, there is nothing to replace a good-old-fashioned meeting. It allows all parties to build meaningful relationships beyond the cold reality of doing business remotely and offers a sense-check and barometer you cannot run or gauge via an app.
The possibility of having multiple visas, permits and long application processes is a turn-off not just to business, but will further dampen the ability for dependent industries like aviation to recover. Time is every executive’s challenge, so the thought of segregated, longer queuing is an inhibitor and time-burn no-one wants on both sides.
The challenges of attracting the right talent and fulfilling your obligations as a non-EU employer are also being made more onerous. Previously, if you were not creating a taxable presence but wanted to hire staff, there were options to be a non-domiciled employer across many EU countries with the right checks upfront. Considering Brexit, some countries are changing the rules, adding further costs through regulation, making them less attractive to overseas employers.
One example of this is France where, from January 2021, there is a requirement for a non-EU established entity to have a formal tax agent in France who will be responsible for making the appropriate payments to the tax authorities. Emerging companies, disruptors and start-ups who have embraced a talent-led strategy to grow and scale pre-Brexit could have further legal, HR and employment tax related hurdles to jump through now due to Brexit – with each European member making their own demands, adding further costs.
Would you like to know more?
If you would like to learn more about how Brexit may impact you, please visit our Practical Guidance: Brexit hub here.
And if you have any questions or would like to discuss your specific circumstances, please get in touch with your usual Blick Rothenberg contact or one of the partners on this page.