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BREXIT

Since June 24th , 2016 it has been clear that BREXIT will become a fact. United Kingdom’s exit from the structures of the European Union causes many people staying or intending to settle or start a business on the isles to ask themselves what will happen after the country's physical departure from the Union.

BREXIT is the effect of British political classes playing on emotions and it is not entirely economically justified. Therefore, we as an accounting office, will explain what the situation looks like in a cool substantive assessment.

FAQs:

1. When will the UK physically depart from the EU?

Honestly, the answer is that no one in Europe knows. It is said that the negotiation process will last a minimum of 2 years and a maximum of 10 years. The President of the European Council estimates that the process will last approximately 7 years. One thing is certain, the UK will not leave the EU earlier than in two years. It is also certain that until the physical departure, Britain is, and will be a full member of the European Union hence nothing will change in the matters of business and labour.

2. What will happen to those who live and work in the UK?

According to Nigel Farage, the most euro-sceptic politician in the United Kingdom and the chairman of the United Kingdom Independence Party (UKIP), all those who already work in the UK can rest assured that they will retain their right to stay in the country. It should be assumed that if the biggest supporter of BREXIT wants to maintain the current state, the ruling party, which largely supported the UK's stay in the EU, will have similar views. The only thing that could change is the situation of people who want to take up employment in the UK after the country leaves the Union, which will be in a few years at the earliest. These individuals will probably have to apply for a work permit similarly to when Poland was not a member of the European Union.

3. What will happen to the Polish businesses in the UK?

In this matter, it is almost certain that nothing will change as Polish citizens may run businesses freely in any country. A business can be established in almost every country (except for North Korea, etc.) that does not belong to the European Union. For example, Polish citizens can establish a business in Ukraine or Russia, similarly Ukrainian and Russian citizens can run a business in Poland, despite the fact that neither Ukraine nor Russia are members of the European Union or the European Economic Area. Therefore, it is almost certain that Great Britain will not cause problems for entrepreneurs running and establishing new businesses, as a country famous for a favourable approach to businesses (6th place in the world in the Doing Business 2016 ranking and 2nd place in Europe http://www.doingbusiness.org/rankings ). Paradoxically, BREXIT may prove beneficial for entrepreneurs. The UK wants a competitive and more entrepreneur friendly country, thus it intends to reduce taxes from 20% to 17% by 2020.

It appears that business owners can rest easy before and after BREXIT.

Why BREXIT should not be feared?

  • the exit process will last several years

  • the UK remains a full EU member until the time of departure

  • currently employed persons should not encounter any issues

  • entrepreneurs will still be able to run businesses

  • establishing businesses will be possible after the departure

  • the taxes are to be reduced below 15%

 

Most importantly, nothing will change until the UK physically leaves the EU, and it will not happen sooner than in a few years. Entrepreneurs should not be afraid at all. The UK is famous for its openness to businesses and BREXIT will not change that.

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