The impact of the Brexit deal on the accountancy sector

After months of uncertainty and political wrangling, a Brexit deal was finally announced on Christmas Eve 2020. The deal includes an agreement that neither the EU nor the UK will impose tariffs on goods being traded as well as a zero quota meaning there won’t be a limit on the quantities of any goods sold.

In a recent article by AccountingWEB, the impact this new deal might have on the accountancy sector was analysed. Featuring professionals from organisations such as the ICAEW and the Council on Foreign Relations, it was suggested that an increase in red tape and slower processes were likely. It was also felt that supply chains would take time to adjust and that there was still a lot of uncertainty in terms of future regulatory oversight.

Rob Sowerby, Director of Professional Courses at London School of Business and Finance, was invited to share his thoughts on what he felt the Brexit deal might mean for accountants in the future in the article.

Rob highlighted that now the UK has left the EU, British qualified accountants do not hold a credential that is automatically recognised by member states, stating that for many accountants ‘this will be of no consequence’. However, there will concerns around the lack of a recognisable credential when it comes to performing statutory accounting work. Rob also pointed out that this will make candidates less attractive when it comes to working in the wider European market, thus putting them at a disadvantage in the international jobs market.

Rob also suggested that there may be some positives for accountants; more bureaucracy will mean more involvement from the accountancy profession. However, there is also likely to be a reduction in economic activity because of new regulations, meaning less income.

The article also featured comments from other accountancy professionals who spoke about their own predictions. Other concerns included an increase in enquiries about how the rules might affect businesses, supply chains taking a long time to adjust as well as complications around VAT.

To read the article in full, please click here.