Following the Brexit vote, it is not uncommon to find people having cold-feet about launching a tech start-up in the UK. The reality, however, is that the UK remains one of the best places in the world for your tech business. Here are reasons why you should go ahead with your plans.
There are more helpful financial schemes than ever
The UK government still offers many financial schemes that provide lots of tax benefits to founders and even employees at start-ups across the UK. It is now possible to set up Employee share schemes to incentivise people that want to join your startup. These shares can be cashed out at around 20% under capital gains tax instead of 40% income tax so this makes it easy to you to get the best hands for your startup. If you want to sell your company in future, you can claim up to £10 million in Entrepreneurs Relief and your investors can get as much 150,000 in tax credits on any investments they made, every year.
Wide Support Network
Across the UK, there are many specialised support networks for new businesses that cannot be found in many parts of the world. Most of these networks only came to the fore in the last few years but many of them have been immensely helpful for new startups. The Business is Great network holds a lot of information for startup founders, covering everything from tax advice to intellectual property protection.
London and Partners provides support and advice for companies looking to scale-up and have a presence in the capital. Tech.London is an excellent resource for founders looking for tips on how start off in the capital, covering everything from finding workspaces to how to raise funding.
The International Business Programme set up by Boris Johnson, a former mayor or London can offer help if your start-up needs to trade abroad.
The Infrastructure Terrain is Cheaper
Before now, the cost of getting started in terms of hardware and software meant that anyone starting a business that required real scaling needed heavy funding to find all the equipment they need to start. Today, the presence of mature open source frameworks and the proliferation of robust cloud-based businesses have lowered the barrier. Leading cloud-related business have dedicated data centres across the UK, making it easier for you to set up a favourable ecosystem for your new business and to get going.
Special Strategy for Fintech Startups
The International Fintech Conference in March 2018, saw Chancellor Phillip Hammond announce a special strategy for fintech startups. The strategy will see the launch of a task force on cryptoassets made up of the Financial Conduct Authority, Bank of England and the Treasury. The focus will be on helping startups to fully harness the benefits of the fintech ecosystem while protecting them against inherent risks to increase profitability. This move, should help push the UK closer to Mr Hammond’s dream of seeing a new tech business registered every half-hour.
So as the debate rages on post-Brexit and as negotiations continue on the place of the UK in the global market, the nation’s position as one of the best places to start-up a new business remains unshaken.