Around one quarter of all self-employed people in the UK are considering moving themselves and their businesses abroad over the next five years, according to a recent survey by Foreign Currency Direct.
The report shows that a significant number of small business owners and entrepreneurs believe that relocating abroad will secure a better work/life balance. Many are reportedly favouring Australia and New Zealand as possible locations.
Among those considering the move, the most eager appear to be firms that operate in banking & finance, hospitality (i.e. hotel, bar and restaurant owners), and many in the professional services sectors.
Of the 2,000 small business owners surveyed, 2 out of 5 have said that the possible tax increases may cause them to move. In April a significant number of high-profile business owners suggested that potential increases in corporation tax, coupled with the new 50 pence tax rate may encourage them to relocate abroad.
With predicted rises in both VAT and basic rate income tax public support for business owners who flee the country to escape tax increases is extremely low. Despite this, Foreign Currency Direct has said that many small business owners are transferring funds abroad in order to help set their companies up as well as paying for “big ticket items” such as cars, property rental, etc.
Many economist and analysts still hold that small business owners are vital to the UK’s economy and it’s future recovery. They stimulate demand, provide tax contributions as well as create jobs.
Whoever the UK’s next government is, they will seriously need to consider providing incentives and tax breaks to encourage small business owners and self-employed people to stay in the country.
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