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By juan
- In Uncategorized
Starting a business in the UK
Starting a business in the UK is different following Brexit. Since 2020, the regulatory framework has undergone significant changes.
These changes have impacted various areas, including immigration, tax regulations, international trade, and access to funding.
As such, entrepreneurs in the UK must embrace this new landscape and acquire the necessary knowledge to navigate it.
There are other articles that outline the steps to set up a business in England, but here we go beyond that.
The following explores the key legislative changes affecting business creation in the UK.
Contents
1 Changes in Immigration and Employment Regulations in the UK
2 Tax Changes for Starting a Business in the UK
3 Trade Regulations in England
4 Data Protection Regulation
5 Access to Funding for Starting a Business in the UK
6 Strategies for Setting up a Business in the UK Post-Brexit
7 Conclusion
1 Changes in Immigration and Employment Regulations in the UK
These are among the most significant changes if you need to hire employees, particularly those coming from EU countries.
Since January 2021, businesses wishing to employ non-British workers are required to:
- Sponsor work visas, which involves a rigorous application process.
- Ensure that employees meet the necessary skill levels and minimum salary thresholds.”.
Although it may appear complex at first glance, the process is entirely manageable. This is especially true when supported by consultancy services in the UK.
2 Tax Changes for Starting a Business in the UK
The changes in tax regulations affect not only UK-based businesses but also those engaged in international operations.
For instance, prior to Brexit, transactions between British and European companies fell under the EU intra-community VAT system.
Now, however:
- Exports from the UK to the EU are zero-rated for UK VAT purposes, but may be subject to VAT in the destination country.
- Imports from the EU into the UK are subject to UK VAT at the point of entry.
3 Trade Regulations in England
This is another of the most significant changes. EU-based companies can no longer trade freely with their UK counterparts.
As a result, customs declarations are now required for all such commercial transactions.
Predictably, this has led to increased costs and longer processing times for both imports and exports.
4 Data Protection Regulation
The United Kingdom no longer applies the European Union’s General Data Protection Regulation (GDPR) and has implemented its own data protection framework..
However, the EU has recognised that the UK maintains adequate standards of data protection.
As a result, UK-based businesses can currently transfer personal data to EU countries without the need for additional safeguards.
5 Access to Funding for Starting a Business in the UK
When it comes to accessing funding, it was previously possible to obtain grants from European Union funds.
However, those involved in setting up a business in the UK now rely more on grants for a business in the UK provided by the government.
In addition, the government and private investors offer loans and British investment schemes, such as the Enterprise Investment Scheme (EIS) and the Start Up Loans Scheme.
6 Strategies for Setting up a Business in the UK Post-Brexit
With the UK now outside the EU, careful planning is highly advisable. Therefore, seeking consultory services for setting up a business in the UK can be extremely helpful.
Additionally, bear in mind that digitising and automating administrative tasks related to customs management can greatly improve efficiency.
7 Conclusion
Due to Brexit, the relationship between British and European companies has undergone significant changes.
As a result, it is essential to design a strategy that aligns with this new international trade environment.
Finally, remember that to build a brand, you need to stand out, but when setting up a business in the UK, you need to understand and comply with the regulations.