Plan now for 'no-deal Brexit', creatives urged

Government guidance on what firms should do in the event of a 'no-deal Brexit' has prompted an industry body to warn that such a scenario should start being planned for by creative traders.

The Creative Industries Federation said that if London and Brussels fail to strike an agreement, the UK will automatically stop being an EU member from midnight on March 30th 2019.

The CIF's reminder follows publication by HMRC of two guidance documents for freelancers and other micro-enterprises -- 'VAT for businesses if there's no Brexit deal' and 'Trading with the EU if there's no Brexit deal.'

"It is vital, therefore, that creative organisations in the UK begin to prepare for a 'no-deal' environment", said the federation, which believes the 'no-deal' risk has increased.

 "They would face restrictions and costs when bringing in talent from the EU, [and] risk losing employees who choose to leave the UK if they no longer have an automatic right to remain and access services."

The same risk of losing talent applies to creative organisations using freelancers -- workers who the CIF has called for the government to draw up a two-tier visa regime to accommodate.

Without such a system in place, and in the 'no-deal' environment more generally, creative businesses face "far higher costs, delays and barriers when trading goods and services in Europe, " the federation warns.

It adds that businesses engaging creatives will also "lose access to important sources of EU funding" and "potentially private sources of finance", should the UK become a less attractive destination for investors.

And it seems a fifth of creative enterprises probably think it will. In fact, 21% of respondents to a recent CIF survey said they would consider moving "part or all" of their operation abroad in a 'no-deal Brexit' scenario.

 

28th August 2018

Related News

Latest News

                             

NEWSLETTER SIGN UP