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Lewis Crompton started his business in the UK back in 2014, but he is considering relocating to Greece if taxes rise, as many expect in this month’s Budget. Mr Crompton from Lincolnshire says he “transformed his life” and became a millionaire after ditching his job in retail to take up trading, and now runs a trading training business. Last week, though, he flew out to Athens to look at properties with the plan of moving his business over there if Chancellor Rachel Reeves makes it – in his own words – “even more difficult for entrepreneurs here to thrive”. Speaking to The i Paper, the 36-year-old said: “I’m pulling the trigger if taxes go up. “The straw that broke the camel’s back was waking up to the amount of tax I am paying and not seeing where it is being spent to benefit society. “I believe in people being able to make, earn and keep the majority of their money but I also believe in looking after our most vulnerable in society, and that doesn’t happen in the UK.” Among the cheaper taxes Mr Crompton says he will benefit from in Greece is dividend tax – a charge levied on the money that investors receive in return for holding shares in a company. In Greece this is a flat rate of 5 per cent, but it can be up to 39.35 per cent in the UK, depending on your income tax band. Corporate taxes can also be lower in Greece, though personal taxes can be higher for some individuals. Other taxes that Mr Crompton is worried will rise on 26 November include national insurance (NI) contributions – for both employers and employees. At the last Budget in autumn 2024, Reeves raised the main rate of NI for employers from 13.8 per cent to 15 per cent, meaning it costs many businesses more to employ staff. Mr Crompton’s biggest hope is that the threshold at which businesses are eligible to pay VAT will be raised, but he does not expect this to happen. The VAT registration threshold is £90,000 of taxable turnover – with businesses that make under this amount not liable for the tax, which is charged on purchases. According to research by Rathbones, Mr Crompton is not alone in worrying about the Budget. Polling from the wealth manager suggests one in eight small and medium-sized enterprises (SMEs) are actively planning to move themselves, their businesses, or both abroad due to the current tax burden. It is broadly expected that taxes will rise further this month, with economists predicting the Chancellor may need to raise £20bn to £30bn to fill a hole in the public finances. Mr Crompton continued: “Just taxing people more never leads a country to be wealthy.” He says there are tax benefits to moving to Greece and that is one factor behind him considering moving there, but he also says better weather is another factor. Speaking from Greece, he added: “It’s currently freezing and raining in the UK and yet I’m sitting in Greece on a balcony in shorts and a t-shirt drinking my morning coffee in the sun. “People here don’t feel quite so beaten down. There is hope and possibility here and we feel very welcome here.” Ade Babatunde, senior financial planning director at Rathbones, said the departure of so many business owners would mean the loss of valuable tax revenue and “much-needed” employment opportunities. He said: “SMEs are the backbone of the UK economy, and the fact that many are actively planning to leave the country – whether personally, by relocating their businesses abroad, or both – due to the current tax burden is deeply concerning for the Government’s ambition to get Britain growing.” Robert Salter, tax director at Blick Rothenberg, said the firm had been receiving more enquiries from taxpayers looking at the implications of moving abroad. But he added: “I wouldn’t wish to overstate the absolute number of business owners who are actually doing this at the present time as, whilst it is something which can sound attractive, it is clearly a big step and something which comes with plenty of implications and challenges – from a wider lifestyle perspective – as much as a tax perspective.” Moving abroad has been on Mr Crompton’s mind for years – but the response he gets from others when he breaks the news is different now. He added: “Years ago, when I considered moving and would share this, I was met with people saying, ‘Why would you want to? The UK is home, it’s not perfect but it’s not that bad really’. “Now, when I share with people that I am looking to move, more often than not, I am met with, ‘I’m jealous, I would if I could. Maybe in a couple of years I will move too’.” But Mr Crompton admits that those like him who are considering moving abroad need to think about a range of factors, not just tax. “Truly consider the social impact, not just the financial,” he says. He added: “Decide where you want to move to and what it gives you other than tax benefits. I could have moved to Dubai, but I don’t want to live that kind of lifestyle; it isn’t me. “I would highly recommend speaking to immigration and tax specialists about this to make sure you can structure your business and income in a way that allows you to move easily and receive your income easily too.”
