News
Tax changes could cause contractors to leave the country
15 June, 2009
The recent statement in the Budget that as from next year people earning more than £150,000 will have to pay a heavy 50 per cent tax, will likely result in a larger number of people seeking to leave the country.
Both in the short and long term, emigration is likely to increase if the Government continues to make things difficult for the high earners in the UK. High earners will possibly look into the loopholes of Switzerland and Monaco, and these job-seekers will no doubt move to more tax-efficient countries, particularly as the international market is open to those with expertise.
The official figures for last year have not been released, but the previous year showed a remarked increase. In general people are no longer restricted to their countries of birth; the world has become very accessible and there are no limitations for the job-seeker. With communication technology revolutionizing the world and travel becoming cheaper and easier it is no longer daunting to make a move to where one can earn a good living.
Research has shown that a larger number of job-seekers are choosing to emigrate due to the negative market conditions over the last 18 months or so. The pull towards Dubai has been immense for those with an adventurous streak looking for a new lifestyle in a different culture. The offers of attractive packages that include working for top companies tax free, good schools and cosmopolitan lifestyles have been hard to refuse. However, it must be noted that many have overestimated the possibilities and have found it difficult to find work due to the effects of the global market downturn.
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