New Prime Minister Impact on UK Business
Now that Boris Johnson is the new Prime Minister of England, there will be several key changes for the UK that will potentially impact business operations.
Boris Johnson has always been a strong advocate of Brexit, and has made it clear that he is willing to let the UK leave the EU in a “no-deal” Brexit. If the UK leaves without a deal, one major impact will be in Northern Ireland. The border between Northern Ireland and the Republic of Ireland has been one of the major factors in debates related to Brexit. If there is no open trade deal made before the UK leaves the EU, businesses and employees working or living in Northern Ireland could suffer as a result. If you have employees living or working in Northern Ireland, you need to prepare your team for the possibility of changes to payroll and operations.
New tax plans laid out by Boris Johnson have included raising the threshold for 40% higher rates of tax from £50,000 per year up to £80,000 per year. This plan will not only cost over £9 billion per year, but will mostly benefit the wealthiest households in Britain. If your employees are currently paying higher taxes, your payroll team will need to make adjustments to accommodate this new tax plan if it becomes the new law.
Another key impact to businesses in the UK will be any new or revised trade agreements under the new Prime Minister. The UK will need to work on new agreements once they leave the EU, and there is economic uncertainty of how that will impact tariffs, free trade agreements and economic partnerships around the world. If your business imports or exports goods and services around the world, it is important to recognise the changes coming and how it will impact your company.
With so many new changes in the UK, and the Brexit deadline approaching in October, it is vital to remain informed and understand the impacts on your business. To learn more about payroll in the UK and how Payescape can simplify your business operations, click here