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Lundi 4 juillet 2016

Ayming UK Experts’ Commentary on Brexit

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EU Grant Funding - Dr Caroline Elston-Giroud, Ayming, European Grants manager

 

“The vote to leave should almost certainly lead to the UK being kicked out of Horizon 2020 (the EU Grants scheme), with this suspension leaving businesses and universities with a funding gap worth billions of pounds. There is a precedent for this: Switzerland was expelled from accessing Horizon 2020 funding when it voted to introduce quotas and permits for migrants within the EU. To this day, they only have partial access to H2020 funding and have not recovered all of the benefits or ground lost in 2014.

“The UK has been particularly successful in winning grants through Horizon 2020, so if that is no longer available, the Government will need to step in and do more to fund innovation by other means such as Innovate UK or tax credit schemes, or risk facing a brain - or even investment - drain to other countries.”

 

Research & Development – Justin Arnesen, Ayming, Director: R&D Tax & Grants

 

 “The UK’s decision to leave the EU will mean that HMRC is no longer bound by EU regulations – a result of parts of the R&D scheme currently being considered as state aid.”
 
“HMRC would then have complete control over its approach to the various R&D schemes. As the UK is less generous than schemes elsewhere in Europe, Brexit may provide the incentive HMRC needs to improve its offering so the UK doesn’t lag further behind.”
 
“That will be especially important if the UK wants to remain an attractive place to do business.”

 

 

VAT – Gavin Barker, Ayming, Head of VAT - UK

 

This vote to leave the EU will mean that HMRC won’t be bound by the Principle VAT Directive or any CJEU decisions once the exit has happened. However, given the complex nature of VAT and the time and effort it would take to implement any new legislation, it would make sense to replicate the existing EU legislation here in the UK.

 

For the short term at least, Brexit shouldn’t have a material impact for UK businesses within the UK. Of course further down the line, it would give the UK the flexibility to set its own VAT rates and decide which goods and services the rates apply to. That will have a significant impact on businesses in the UK and businesses accessing the UK market.

 

From a cross boarder refunds perspective, 8th Directive VAT reclaims will no longer exist and all claims in Europe would be classed as 13th Directive claims, leaving UK businesses with significantly more paperwork due to the way these claims are currently processed.

 

There will be other many other changes to the way UK VAT interacts with the rest of the EU. We will keep clients updated as these are analysed in more detail.”

 

 

Procurement - Alejandro Alvarez, Ayming, Director: Operations Performance

 

“Brexit will have a fundamental impact on businesses’ supply chains. It’s highly likely that costs will rise, which could have a lasting impact on the UK’s competitiveness.”

 

“The health, agriculture and manufacturing industries have long benefitted from their ability to attract a workforce from EU member states, and a vote to leave the EU will introduce both cost and operational challenges, as businesses look to bring in affordable labour from elsewhere.”

 

“Industry experts have also suggested more than 35% of UK imports could be subject to higher trade tariffs in the event of an exit. This could mean costs to produce goods and services will go up and Britain will be less competitive as a trading partner. Clearly other trade agreements will be negotiated but this will take time and money and there is no certainty on what the agreements will look like when the dust settles.”

 

“Even now, businesses need to be thinking about how they can collaborate more closely with their suppliers, ensure their operations are as agile as possible, as well as identifying risks early.”

 

 

A propos d’Ayming

Ayming est un groupe international leader du conseil en Business Performance, né du rapprochement d’Alma Consulting Group et de Lowendalmasaï, implanté dans 14 pays : Allemagne, Belgique, Canada, Chine, Espagne, France, Hongrie, Grande-Bretagne, Japon, Italie, Pays-Bas, Pologne, Portugal, République Tchèque. En 2015, le Groupe qui compte près de 1500 collaborateurs a réalisé un chiffre d’affaires de 173 M€.

Ayming apporte aux entreprises un accompagnement stratégique et opérationnel pour faire émerger et développer durablement leur performance globale, dans quatre grands domaines d’expertise : les Ressources Humaines, les Opérations, la Finance et l’Innovation. Les missions d’Ayming résident dans l’accompagnement de la prévention et la gestion des risques (sécuriser), l’optimisation des process, des organisations et des financements (accélérer), le développement des stratégies de croissance et la réallocation des ressources (anticiper).

Ayming est qualifié par l’Office Professionnel pour la Qualification des Conseils en Management, Membre du Syncost et de Consult’in France, certifié ISO 9001 par AFNOR Certification, membre de l’Association des Conseils en innovation (ACI), de la Commission de normalisation de l’AFNOR sur le Management de l’Innovation, de l’Association Technique Energie et Environnement (ATEE) et du Groupement des Professionnels des CEE (GPC2E).

 

 

Notes to Editors

 

Ayming is a leading international Business Performance consultancy, formed from the merger of Alma Consulting Group and Lowendalmasaï, with offices in 14 countries: Belgium, Canada, China, Czech Republic, France, Germany, Great Britain, Hungary, Italy, Japan, Netherlands, Poland, Portugal and Spain. In 2015, the Group, which has a staff of approximately 1,500, achieved a turnover of €173m.

 

In the UK Ayming helps businesses to improve their financial and operational performance through innovation, tax and procurement, supply chain, working capital and operational efficiency services.  The R&D team has claimed more than £100m of R&D tax benefits for its UK clients and, as Group, analyses over 15,000 R&D and innovation projects each year.

Lundi 4 juillet 2016
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