UK Business Owners Face “Substantial Tax Rises”. Here’s Why Many Are Setting Up in Dubai Instead

This week, a Sky News report highlighted an alarming message delivered to the Chancellor: “substantial tax increases” may be required after the next general election, regardless of who wins.

    dubai company setup

    The warning is clear: future UK governments may have no choice but to raise taxes, and it’s small business owners who may pay the price.

    This week, a Sky News report highlighted an alarming message delivered to the Chancellor: “substantial tax increases” may be required after the next general election, regardless of who wins.

    With public debt rising and pressure to maintain services like the NHS, economists say middle-class earners and business owners could be hit hardest.

    The UK Tax Burden Is Already the Highest in 70 Years

    UK corporate tax currently sits at 25% for companies earning over £250,000, and rising costs across payroll, insurance, and compliance are squeezing profits for even the most successful entrepreneurs.

    If you're:

    • Earning £100K+ in annual profit
    • Running a lean operation with no investor shield
    • Tired of inconsistent policies and unclear tax planning...

    You’re not alone.

    🇦🇪 Why Founders Are Choosing Dubai Over Uncertainty

    Dubai has become the destination of choice for high-performing founders from the UK, Canada, and Australia seeking a more stable and tax-efficient base for their businesses.

    Here's why:

    ✅ Corporate Tax: Just 9% and 0% for Qualifying SMEs

    • Profit under AED 375,000 (~£80K)? 0% Corporate Tax
    • Above that? Just 9%, with no dividend tax, capital gains tax, or personal income tax

    ✅ Clear Policy Direction

    Dubai’s 2033 Economic Agenda lays out long-term plans — not last-minute policy U-turns.

    ✅ Global Reputation & Infrastructure

    • Incorporate in a globally respected jurisdiction
    • Access world-class banking, logistics, and tech services
    • Operate remotely or relocate — your choice

     What UK Founders Are Saying

    “The UK feels like it’s in the dark ages by comparison… With Strive’s help, doors opened that we didn’t even know existed.”
    Nicholas & Leigh Blackwell, Nexus Global Holdings

    “I couldn’t believe how quickly we got everything sorted. Bank account, licence, visa — all done.”
    Steve Broad, Jota Project Management

    Dubai Company Setup Doesn’t Mean Relocation

    Contrary to popular belief, you don’t have to move to Dubai to benefit from setting up there. Many of our clients:

    • Register a Free Zone company remotely
    • Use it for global invoicing or IP holding
    • Apply for UAE corporate tax registration
    • Enjoy significantly lower tax exposure while maintaining UK operations

    Is Now the Right Time to Explore Alternatives?

    If you’re concerned about rising taxes, uncertain regulation, and losing more of your hard-earned profits, you’re not alone.

    At Strive, we’ve helped over 200 founders restructure their business legally, ethically, and efficiently with a UAE base that protects both their growth and peace of mind.

    📞 Book a Free Consultation With Our Advisors

    ✅ Learn how UAE tax works
    ✅ See if you qualify for small business relief
    ✅ Get a clear plan based on your goals

    👉 Tap here to get a free quote or speak with our team

    About the author: Dipesh Virji

    Meet Dipesh, our Head of Formations. Having relocated to Dubai and built his own business from the ground up, Dipesh understands exactly what it takes to succeed here. With over a decade of experience in real estate, advisory, and brand growth, he has guided hundreds of entrepreneurs through the process of relocating and setting up their companies in the UAE. Dipesh combines hands-on knowledge with strategic insight—offering not just sales leadership, but real-world expertise that empowers our clients to build with confidence in Dubai’s dynamic business landscape.

    See more articles by Dipesh Virji

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