Brexit: Five questions accountants should be asking
What questions should the profession be asking now the UK has decided to leave the EU?
AS the nation digests the reality of an EU exit, accountants and practices across the UK will be looking to come up with answers to their clients’ concerns.
But what exactly should the accountancy profession be asking now that the future involves no longer being part of a collective that’s had a large stake in both British tax and accountancy for the past 40 years?
ICAS has composed a list of questions breaking down exactly what the profession should be asking following the historic vote:
Break tax ties completely?
The UK has always had primary control over direct taxation, but will it be more inclined to “go its own way” and ignore European and international convention and initiatives outside the EU?
VAT
Will the UK government change its approach to VAT and VAT rates, freed from the restrictions imposed by the EU and, if so, what changes will occur?
What will happen if there is an emergency Budget?
If there is an emergency Budget, which taxes will increase and if significant sums are required does this mean the end of the triple lock on income tax, VAT and national insurance?
Policy changes
What will be the impact of Brexit on UK government policy in other areas which impact British business and the accountancy profession such as: anti-money laundering; data protection; competition; financial services; harmonisation of product standards; consumer rights; pensions?
What next for accountancy?
In areas of accountancy, what new policies will follow? Will the UK be inclined or persuaded to depart from International Financial Reporting Standards (IFRS) and re-establish UK Generally Accepted Accounting Practice (UK GAAP)? Will the EU Audit Directive and regulations continue to be implemented as planned, or will some aspects be reversed?
ICAS’ full list of questions can be found here