{"id":137366,"date":"2026-03-02T13:58:55","date_gmt":"2026-03-02T13:58:55","guid":{"rendered":"https:\/\/technation.io\/?p=137366"},"modified":"2026-03-02T13:58:56","modified_gmt":"2026-03-02T13:58:56","slug":"what-founders-want-from-the-uk-tax-system","status":"publish","type":"post","link":"https:\/\/technation.io\/what-founders-want-from-the-uk-tax-system\/","title":{"rendered":"Founders Call for Major Changes to UK Tax System | Founders Pulse"},"content":{"rendered":"\n<p><strong><em>As the UK government evaluates tax incentives, founders are calling for a\u00a0system that rewards risk, simplifies compliance, and incentivises growth in our latest Founders Pulse.<\/em><\/strong><\/p>\n\n\n\n<p>The UK tax system is often seen as a barrier to growth. From complexity and unpredictable changes to burdensome regulations. The Government has opened a formal Call for Evidence \u2013 an opportunity for UK founders to influence how the country can support scaling businesses.<\/p>\n\n\n\n<p><a href=\"https:\/\/technation.io\/founders-pulse\/\">Founders Pulse<\/a> facilitates this direct line to the government, enabling founders to voice their concerns. In our latest Pulse, founders shared the urgent need for policies that incentivise risk-taking, keep talent in the UK, and provide the support needed to scale.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Issues with the UK Tax System<\/strong><\/h2>\n\n\n\n<p>Founders have spoken loud and clear about the barriers they face. These issues are making it harder to build, scale, and retain talent in the UK:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Talent and Hiring<\/strong>: The current <strong>EMI scheme<\/strong> is limiting the ability to attract and retain top talent, especially for businesses scaling rapidly in sectors like AI and deep tech.<br><\/li>\n\n\n\n<li><strong>R&amp;D Complexity<\/strong>: Founders are struggling with the <strong>R&amp;D tax relief<\/strong> system, finding it too complex and inaccessible, which hinders innovation in tech-driven industries.<\/li>\n<\/ul>\n\n\n\n<p><strong>76%<\/strong> of respondents said they had actively considered relocating their tax residency or their company HQ outside of the UK. One respondent went as far as to say they \u201chadn\u2019t spoken to a single entrepreneur in the last year who hasn\u2019t considered relocating outside the UK.\u201d Clearly, action is needed, fast.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"608\" height=\"456\" src=\"https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/relocation_consideration.png\" alt=\"\" class=\"wp-image-137368\" srcset=\"https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/relocation_consideration.png 608w, https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/relocation_consideration-300x225.png 300w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Founders\u2019 Top Priorities for Tax Reform<\/strong><\/h2>\n\n\n\n<p>We asked founders what needs to change, and three priorities emerged:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stronger incentives for high-growth businesses<\/strong>: Founders want a tax system that rewards risk and scales with the needs of their growing companies.<br><strong>Simplified tax processes<\/strong>: Tax compliance should be easier, allowing founders to focus on building their businesses rather than navigating red tape. One founder put it frankly, \u201cwe\u2019re entrepreneurs trying to grow, we haven&#8217;t got time for mastering the intricacies of tax systems with no help from HMRC.\u201d<\/li>\n\n\n\n<li><strong>Support for attracting and retaining talent<\/strong>: With global competition for skilled workers, the UK needs a tax environment that makes it easy to hire top talent and incentivise them to stay.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"716\" height=\"456\" src=\"https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/zero_tax_reinvestment.png\" alt=\"\" class=\"wp-image-137373\" srcset=\"https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/zero_tax_reinvestment.png 716w, https:\/\/technation.io\/wp-content\/uploads\/2026\/03\/zero_tax_reinvestment-300x191.png 300w\" sizes=\"(max-width: 716px) 100vw, 716px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>What We\u2019re Calling For on Your Behalf<\/strong><\/h2>\n\n\n\n<p>The key changes founders are calling for are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Higher limits for EMI schemes<\/strong>: Founders want the <strong>EMI scheme<\/strong> limit raised to \u00a3500,000 and extended to contractors and fractional advisors.<br><\/li>\n\n\n\n<li><strong>A Scale-Up EMI Tier<\/strong>: A new tier that continues providing equity incentives as businesses grow beyond the 500-employee mark, ensuring that key talent is retained through hyper-growth.<br><\/li>\n\n\n\n<li><strong>Restore Entrepreneurs\u2019 Relief<\/strong>: Founders want <strong>Entrepreneurs&#8217; Relief<\/strong> back with a \u00a310m lifetime limit and a 10% rate, making it more rewarding to scale and reinvest in the UK.<br><\/li>\n\n\n\n<li><strong>Support for R&amp;D in Deep Tech<\/strong>: Founders are advocating for <strong>SEIS Gen-2<\/strong>, which would double R&amp;D funding limits and extend eligibility windows, addressing the high cost of innovation in sectors like AI.<br><\/li>\n\n\n\n<li><strong>Simplicity!<\/strong>: On the whole, it seems that the process is unnecessarily complex.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>We\u2019ve taken these actions to government \u2013 now we\u2019re working to ensure they become reality.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What\u2019s Next: Shaping the Future of UK Tax Policy<\/strong><\/h2>\n\n\n\n<p>The UK has incredible potential to lead the world in entrepreneurship, but we need tax policies that reflect the ambitions of its founders. We are working hard to ensure that the government listens and implements the changes needed to keep the UK at the forefront of global innovation.<\/p>\n\n\n\n<p>If you haven\u2019t already, join <strong><a href=\"https:\/\/technation.io\/founders-pulse\/\">Founders Pulse<\/a><\/strong> and be part of the conversation. The more founders who contribute, the stronger our case will be.<\/p>\n","protected":false},"excerpt":{"rendered":"As the UK government evaluates tax incentives, founders are calling for a\u00a0system that rewards risk, simplifies compliance, and incentivises growth in our latest Founders Pulse. The UK tax system is often seen as a barrier to growth. From complexity and unpredictable changes to burdensome regulations. The Government has opened a formal Call for Evidence \u2013&#8230;","protected":false},"author":225,"featured_media":137385,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[27],"tags":[],"class_list":["post-137366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Founders Call for Major Changes to UK Tax System | Founders Pulse | Tech Nation<\/title>\n<meta name=\"description\" content=\"Our Founders Pulse Survey reveals what founders want most \u2013 a tax system that rewards risk, simplifies compliance, and incentivises growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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