The recent Brexit vote has certainly thrown a lot of British start-ups, and hasn’t left them short of reasons to put off trading in the UK and looking for greener pastures.
But while you focus on all of the bad things the Brexit means for your business, let us remind you of why the UK has always been a good place to start a company – and why you should carry on trading here!
Britain was titled one of the best places in the world to start a business in a Legatum Institute report in November 2015.
Part of the reason Britain earned the title was due to the government’s improved understanding of starting up a company. As a result they’ve been able to offer appropriate funding and relevant expenses associated with setting up a business. Coupled with a focus on growth of full-time employment, this created an environment in which start-ups could prosper.
No matter what happens to start-up funding, a government that can sympathise with the start-up costs for the company means they’ll focus energies on the right channels during tough times, so you’ll still be able to get the most from beginning your business.
Another key reason start-ups flourish in the UK is because it has low barriers of entry to starting a company. For the cost of a chippy you can set up your own limited company, as long as you’re over 16. If you want to become a sole trader it’s even easier – and there are no initial start-up costs.
Chancellor George Osborne’s pledge to lower corporation tax to below 15% is great news for those with limited companies. Osborne hailed it the creation of a “super-competitive economy”, as Britain would be rivalling Ireland’s 12.5% corporation tax.
Although there’s currently no specific time-plan for the pledged corporation tax cuts, even Britain’s current rate of 20% is notably lower than other countries. For example, Germany’s current corporation tax rate is 29.65%, France’s is 33% and Belgium’s currently stands at 33.99%.
This is also good news for sole traders looking to become a limited company, as they will benefit from this even more they would if they continued as a sole trader.
This is a capital gains tax relief available to those selling their company. If you sell your company, you can claim up to £10 million of Entrepreneurs Relief and investors can claim up to £150,000 in tax credits on their investments each year.
While you might not want to think about what will happen if your business goes under, it’s important to plan for every possible outcome, so don’t let thinking ahead put you off!
Will you be putting off your start-up until Britain has a more stable economy? Or are you setting up no matter what? Leave your comments in the section below.
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We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!