Post-Brexit positivity for contractors
Published on Wednesday, July 13, 2016
Matthew Lynn of The Telegraph states that there can be growth for start-ups and new businesses in post-Brexit Britain. London will offer more to entrepreneurs and they may not need to dash off to other European cities just yet.
With a van paid for by Germany’s Free Democratic Party promoting “…Start-Ups, Keep Calm and Move to Berlin”, Matthew Lynn discusses the impact of Brexit on start-ups. Are there still opportunities in the UK for new businesses? Will people be inclined to set up companies in other European cities or does the future look positive for the UK?
Pre and post-Brexit, many leading economists and financial experts have said that the UK leaving the EU would see investment and business leave the UK and instead move their businesses to other EU locations. However, in the weeks since 51.9% of the UK voted to leave the EU, the number of new businesses registered by Europeans in the UK actually went up. Whilst it is wise to take caution and not judge any of the statistics too quickly, whether positive or negative, it is also important to note that the initial negative impact on the financial markets could improve in the long term.
So, what are the reasons why investment and business entrepreneurship could grow in the UK post-Brexit? One of the reasons is that the UK is the 17th easiest country in the world to set up a company, France is 32nd, Italy 50th and Germany is 107th; not quite what the posters would have us believe.
Another reason is that the UK will soon have the lowest rate of Corporation Tax. In Germany it’s 29%, in France it’s 33% and in the UK, the current rate is 20% and plans to reduce this to 17% in the coming years have quickly accelerated and could be as low as 15% very soon.
The roadblock will be the loss of access to the single market, however, we will be able to embrace highly skilled non-EU citizens to the UK as well as EU nationals. Matthew Lynn believes that so long as we accept the changes we need to make as a country to improve our position outside the EU, the country will grow and there is still a lot of space in the UK for new companies to be set up and experience growth.
Do you think the decision to leave will impact your plans to start a new contractor business? Would you perhaps hold off and wait to see what happens? Or are you, in fact, ready to set up your own contractor business today and embrace the changes?
Whatever your stance, we can help you set up a business in the UK. Our service offers contractors a chance to set up a business and run it with ease. As one of the UK’s leading accountancy service providers, we help contractors by setting up and helping them manage their limited companies. Our service includes limited company incorporation, registration for Corporation Tax along with various other administration processes from bookkeeping to quarterly VAT returns. In addition, we provide the best tax planning advice for your needs to ensure your business is successful and provides you with the best return possible.
If you would like more information about our services, contact us or request a callback. Alternatively, you can request a callback or use our take home pay calculator below to discover your potential with our help.
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