Boris Johnson has been elected the new Prime Minister of England. Along with any new leadership, he will bring with him new ideas, Brexit plans, and more. So how could this impact your global operations? Let’s look at few potential changes for companies operating in the UK:
Brexit
The new Prime Minister has been very vocal about Brexit and his views on leaving the EU with or without a deal. The EU has made it clear they are not willing to re-negotiate the agreement that was made with the former Prime Minister Theresa May, so Johnson will have to work within the limits of the agreement or leave the EU with no deal. A “no-deal” Brexit could impact trade and commerce between the EU and UK, so if you have employees living and/or working in the UK the Brexit negotiations are an important factor for your global operations.
Employee Taxation
Johnson has previously stated that he would like to amend the 40% higher tax levels to employees earning £80,000 or more instead of the current £50,000. This change would impact companies with employees in the UK who are currently being taxed at the higher levels, so payroll teams need to be aware that these changes could be coming in the next year.
Market Uncertainty
With Johnson continuing the no-deal Brexit talks, the pound value has flat-lined. If the no deal Brexit moves forward, the UK economy could suffer – especially in Ireland. As the markets react to new changes and the Brexit date set by the EU gets closer, the global economy will be looking to the EU and UK for the outcome of this next chapter. For US companies, the lower pound value could be a positive change, but if the pound increases it will be more expensive to do business and pay employees in the UK.
Just as with any change, there are uncertainties and a period of “wait and see”. Getting your payroll and compliance under control now can save time and resources later. To learn more about simplifying payroll, click here